The Net Worth TV show with Terry Bradshaw covers a variety of wealth management topics on a regular basis. One of the most important topics in wealth management is growing your personal wealth. Growing your personal wealth is the key to retiring early, and living the lifestyle that you want to, when you want to. Here are 5 key ways that you can grow wealth over time.
1. The Net Worth TV Show on Saving Money
Saving money goes without saying, but you need to start saving something. Net Worth TV focuses on interviews with people who are great about saving money. Just thing about the saying “it’s not what you earn, but what you say”. Look at people who make a lot of money but complain: Vice Presidents of companies who always complain they don’t have any money. The reason is because of how they talk.
Then, look at the quite family on the block with the biggest houses. They don’t say much, but have a nice sum of money. The goal is to save, and you can focus on this to grow wealth.
2. Starting Young
The younger you start focusing on growing wealth, the easier it will be because of the power of compounding. Many people don’t realize that even if you start out contributing a small amount of money to a 401k, over time, you will build real wealth because the money will grow. The longer you wait to start saving, the more you will need to save because you have less time to watch your money compound.
It doesn’t matter how much you save, but it does matter that you start early. Grow wealth by starting young.
3. Stay Married
Divorce is one of the biggest destroyers of wealth in society. If you stay with your spouse, you have double the income and earning potential, and you can grow wealth. Think about people you know who divorce (especially later in life). Since they have to split everything and incur a lot of costs, it destroys financial momentum. Plus, you lose the advantage of starting young. You lose the power of compounding. You basically have to start over again in mid-life. So, if you want to grow wealth over time, work as a team with your spouse and you will get much farther.
4. Focus on Yourself Above Your Children
This may sound odd, but financially, if you want to grow wealth, you need to put your own personal financial health above your children. This means saving for yourself first. By focusing on yourself while you’re young, you will inevitably be able to pay for your children’s college later.
Too many people fall into the trap of saving for their children at too young of an age. They contribute to a child’s college fund when the child is a baby. Instead, use that money to ensure that you are stable and you can build your own wealth. This will help you be financially stable to be able to provide for your children later. In a worse case scenario, your children can always get a loan for college, but you can’t get a loan for retirement.
5. Live Below Your Means
Finally, you need to live below your means. Just because you have a good income doesn’t mean you need to spend it all. Instead, buy a house that is much less that you can afford. If both you and your spouse work, try to live on one income and save the other. If you want to build wealth, you need to have money to save and invest. This means looking at your budget and living below the top line amount.
By living below your means, in a smaller house or by spending less, you free yourself from a lot of unnecessary expenses, which in turn allows you to save and invest. You don’t want to be house poor, where you’ve put everything into a house, but don’t have any real wealth. Real wealth comes from the ability to live the lifestyle you want, when you want to, and living below your means can help you achieve that.