Tip #1: Kill the Debt
No matter what economic level you are at, it is time to work on debt elimination. This may mean that you may have to cut down on some things so that you can afford to sustain yourself while paying back the debt you have. On the other hand, stop accumulating any new debt. This is even more important when you are being charged an interest on the debt.
Also, pay all the credit card debt quickly to avoid the very high interest rates that you may be charged. Paying off and avoiding debt will not only increase your chances of building long-term wealth, it will also help give you peace of mind, especially if some of that debt was owed to friends.
Tip #2: Invest Smartly
It is always advisable to invest your money in different portfolios. This has to be carefully thought and planned out. Depending on how much you earn, it may be advisable to start investing in areas such as the stock market and real estate. You can also invest in other money markets such as mutual funds or treasury bills.
Spread your investments in such a way that there are some investments which are more liquid than others. For example, it may take a day to sell stocks but may take longer to sell land. If you put up all your finances on land, you may get disappointed when a better opportunity comes by and you can't sell the land quick enough to get the cash to invest in the new opportunity. The assets which are less liquid will help you keep yourself in check.
This is because you will know that you have an investment somewhere but don't have immediate access to the cash. You will then motivate yourself to work harder to make some more so that you don't touch this investment. Do not also forget to invest in your retirement.
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ip #3: Start Your Own Business
It is not easy to start a business but it is worth a shot. This also needs to have a careful, well-thought out plan to make sure you start something you can sustain. The fact is that mostly when you are employed, you may make the company billions but only get paid a small fraction of it.
On the other hand, if are the owner of a business, you can reward yourself in proportion to what your business earns. Since the failure rate of new businesses is quite high, make sure you have all the necessary skills to run your business profitably. After some time, you can also sell your business off for a huge amount and start another one. The fact that you were already successful in business once may make it easier for you to be successful in your other business.
Tip #4: Think Long Term
When you compare the poor and the rich, there are certain common traits that you are likely to discover. One of them is the fact that the poor think short-term and day-to-day while the rich think-long term. For you to be wealthy in the long-term, you have to align your mind to that. This kind of thinking will always push you to work hard to meet your goals.
Tip #5: Be Smart With Your Money
No matter how much you earn, it is important to always take time to plan it out before spending. Do not be quick to spend your cash without planning carefully. This will help you to make smarter decisions and be able to remain wealthy.
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Article Source: http://EzineArticles.com/?expert=Myrna_F_Kirk
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