Want to build wealth but don’t really know where to start? If you knew where and how to start, would anything else be holding you back? What about fear or lack of money?
For many people who want to build wealth, not having a lot of money upfront is often the biggest obstacle. When you’re living paycheck to paycheck, it’s difficult to squeeze out extra money to build a nest egg or invest in your future.
When you focus all your time, energy, and money on the now, it’s almost impossible to do anything to make your future better.
Building wealth is still very important, and you shouldn’t let lack of funds deter you from reaching financial stability and preparing for financial independence. Here’s what you can start doing if you want to build wealth but have a low budget.
LIVE BELOW YOUR MEANS
This is probably the most important thing you can do to build wealth. When you live below your means and spend less than you earn, there will always be something left over each month.
It’s a guaranteed way to make sure you have extra money to save and invest for the future. However, it’s easier said than done.
If you find that you’re spending more than you earn, you need to create a realistic budget you can stick to. Lower some expenses to make sure you have some extra cash flow.
For me, this means keeping my cost of living low. I prefer to keep my housing expenses at way under 30% of my income, I drive a used car, eat at home most nights, shop for sales and discounts, and compare rates to make sure I’m getting the best deal.