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Originally Posted On: https://everythingfinanceblog.com/31858/building-from-nothing-wealth-strategies-for-the-broke-and-driven.html

 

Did you know that 13% of Americans feel as though it’s important for them to be wealthy?

You might belong to this group, but you may not know how you can become wealthy. Following this, you might be looking for a plan that’ll help you boost your net worth.

Read on, and you’ll discover some wealth strategies that’ll help you become wealthy.

1. Getting a Raise

If you want to build wealth, the first thing you need to focus on is how you can improve your income. After all, if you can improve your income, you will have more money to save and direct towards investments.

If you want to boost your income, the easiest approach here is to ask your boss for a raise. You might also want to see if another company in your industry is willing to offer you a better salary.

Note that if you get an offer from another company, you should consider using that figure as a bargaining chip.

So, you might go back to your initial employer and tell them that another company is willing to offer you a lot more money.

If you do this, your existing employer might give you a raise, so that they don’t lose you. If they don’t, you can always join the other company that is offering you more money.

2. Should You Switch Industries? 

Depending on your role, the tactics mentioned above might only get you so far. That’s because your current position might have a relatively low salary ceiling.

If that’s the case, you might want to think about securing a role in a completely different industry.

If you’re not sure which industry you should go for, you may want to look at a job board to determine which jobs are paying a lot of money. Once you identify a few interesting jobs, you may want to consider how you can secure such roles.

If you go down this route, you will often need to do some training, alongside your typical day to day work.

This can create a lot of short-term pressure as you will lose a lot of your free time. Yet, if you find yourself in this position, it’s important to remember that things will eventually get better, once you start working in your new role.

3. Pay off Debt

Once you’re earning more money, you then want to think about paying off your debt. That’s because interest payments can often reduce the amount of money you can put towards investing.

Initially, you should try to focus on consumer debt, which is generally something like credit card debt.  If you want to eliminate debt as fast as possible, you need to identify all your living expenses.

In doing so, you might able to identify a few costs that you can do without. If you reduce these expenses, you can then redirect more money towards paying off your debts.

If you’re serious about reducing your debt burden, you will need to live frugally for a few months or so.

This can be a tough thing to do, as you won’t be able to spend as much money on entertainment and eating out. Yet, once you begin to see your debt burden fall, you’ll feel motivated, as you’ll be making progress towards your goal of becoming wealthy.

4. Should You Buy a Home? 

In the section above, we mentioned that you should try to cut down on your living expenses. Well, for many people, one of their biggest living expenses is their rent bill.

If that’s the case for you, buying a home might allow you to lower your living expenses dramatically. That’s often because mortgage payments can be a lot lower than rent payments.

Now, if you’re a first-time homebuyer and you have limited access to funds, you may find that it’s quite difficult to secure a mortgage. If you find yourself in this position, you may want to consider applying for an FHA loan.

One of the great things about this kind of loan is that you don’t need a high credit score to qualify for it. The down payment you need to provide is also lower than what you’d have to put down for a ‘standard’ mortgage.

If you’d like to learn more about this kind of financing, this website covers some of the frequently asked questions about FHA loans.

4. Investing in the Stock Market

The next thing you’ll want to focus on is how you can invest some of your money in the stock market.

Now, when we’re talking about investing in the stock market, we’re referring to a long-term approach to investing. So you will add money to your investment account, and you will not touch it for at least 15 years.

This approach works well because, over an extended period, the stock market generally goes up. This is despite the recessions that’ll take place during a 15 year period.

If you’re not sure what you should invest in, consider putting your money into something like the ‘Vanguard fund.’

This fund puts your money into all the best companies on the stock market. This approach is generally low-risk as all of your money isn’t invested in a single company that could fail.

Will You Use These Wealth Strategies? 

The wealth strategies we’ve covered in this post should help you increase your net worth.

Building your wealth is something that takes a long time, and so you must ignore the allure of ‘get rich quick schemes.’ Instead, you should try to create a reliable plan that you will be able to stick to for many years.

If you want to become wealthy, you will need to make a lot of sacrifices, and this can be a tough thing to deal with. However, if you want to become wealthy, you have no other option but to accept these sacrifices.

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