Recently, I attended a women’s empowerment conference and one of the speakers used a profound analogy I found useful in many areas of life. She said one of the things race car drivers worry about most is going off course and hitting the wall. Race car trainers often tell drivers to focus on going straight, maintain speed and avoiding the wall is inevitable. The speaker said people who focus too much attention on “hitting the wall” often find themselves in the position they feared most. They spend too much time on the obstacle and forget to focus on the goal.
This is also true for people who are in debt. They keep telling themselves, “I don’t want to be poor; I don’t want to be poor.” And, unfortunately still end up with little or no money. Too much time is focused on the debt and not enough time spent on achieving wealth. Below are a few tips on how to create wealth.
Invest wisely. Many people find themselves in difficult financial distress because they have not properly prepared for emergencies or the future. If you don’t want to end up “broke” start putting things in place now to help you reach your financial goal/s.
- Start contributing to a 401(k) account or some other retirement investment. A little put away now will bring huge results later.
- Build an emergency savings fund. Prepare for the unexpected such as a job loss, home or car repairs, and even periodic expenses. This way you won’t have to rely on credit when these instances occur.
Hone your passion. Invest in a career that is rewarding and challenging. Don’t chase money. I firmly believe that if you work at something you’re truly interested in the financial award will follow. Many people are living their dreams and making money at the same time.
Protect assets. Insurance may seem like wasting money, but it will come in handy when it’s needed and will save you a boatload of bills. Make sure all your valuables are protected including yourself. Purchase the right coverage and amount to avoid an unnecessary financial strain.
Pay off credit card debt. Carrying a credit card balance each month is not helping you. The money going towards payments could be put to good use in another area. Be careful not to charge more than you can afford to pay off the following month. If you cannot pay the balance off in full commit to a 90-day payout plan. Also, don’t use more than 30 percent of your credit limit.
One of the best “how to get wealth” advice out there is so simple, but many fail to see it – live within your means. Spend less than you earn. Don’t buy a $60,000 car when you’re only earning $30,000. Develop some achievable financial goals and stay on course with those.