How to build wealth

Most people with million dollar incomes are not wealthy. Why? It is because they buy huge houses, 3 cars, and a boat, and at the end of the day, there is no money left in the bank! In order to build lots of wealth, you don't need a million dollar income, or a rich uncle, you just need to make a simple plan and stick to it.

Instructions

Difficulty: Moderately Challenging

1. Set a goal for how much you will save each month and then make it a goal to save a little more each month after that. Most people skip this step and simply say "oh, we will just start saving", but without a goal, a fixed amount in your mind, you will find your money spent and gone.
2. Find new ways to save. "But I am barely scraping by" I can hear you say. To that I can only answer that I understand, but there is always some place where you can save. Most of the time it comes down to simple dollars and cents. If you can find 10 ways to cut a dollar from simple purchases in a month, well that is $10 a month, and $120 a year. Assuming compound interest at 3% a year, well that would be $795.32 in 5 years, and $1,578.21 in 10 years. And that is only at $10 a month!
3. Don't get in over your head. Think twice before buying that second car, new toaster, or huge house. Try to avoid going into a mortgage or debt situation that takes over half your current income. If you are there already, don't fret, you are not alone. Just regroup, plan, and know you can get out of it.
4. Create multiple sources of income. Time to get creative. It doesn't have to be big money. Remember saving $10 a month? Well, now set a goal to make $10 a month. Try many things, selling things on craigs list, cashing in on aluminum cans, selling crafts from your favorite hobby. The more fun it is, the more it'll stick. You don't need to slave at a job for income, income can be fun, so enjoy the challenge.

Tips & Warnings

• Stick to your plan, once you start saving, avoid dipping in to those savings when you see those ads for convertibles on T.V.!