5 Steps To Take Right Now To Be Rich in 5 Years
5 Steps To Take Right Now To Be Rich in 5 Years
Bob Haegele Wed, March 8, 2023
You probably have heard that getting rich quick won’t work in most cases unless you win the lottery or receive a large inheritance. But, if you are trying to build wealth yourself, if it sounds too good to be true, it probably is.
On the other hand, if you want to build real, sustainable wealth, it’s important to have a concrete plan with defined steps. Then, of course, you must follow through on those steps.
In other words, it’s not enough to have a vague goal of wanting to be rich. Without specific steps to help you achieve your goals, you won’t be able to move forward or — worse — you may even move backward.
Thankfully, our experts have provided their best tips for building wealth, which you can turn into actionable steps. Depending on how you define it, you may not be “rich” in five years, but you certainly can set yourself up for success and be well on your way long before then.
1. Know Where Your Money Is Going
Knowing where your money is going is the first step of any successful financial plan. If you don’t know where your money is going, it may be tough to put it to better use. Typically, this step would involve setting up a budget, but Mark Wilson, founder and president at MILE Wealth Management, has a different take.
“I’m not recommending massive spreadsheets here,” he said. “I’m recommending (roughly) categorizing your spending items. Instead of tracking every line item, he recommends establishing Owe, Grow, Give and Live categories. Wilson gave examples of what each category might entail:
Owe counts mortgage/rent, student debt, credit cards, taxes (income, property), etc. — nondiscretionary debt
Grow includes your short-term and long-term savings
Give is the amount you give to charity
Live is everything else — your “more discretionary” expenses
Wilson recommends allocating a certain percentage of your money to each category; for example, 25% Owe, 10% Grow, 5% Give, 60% Live. You might adapt those percentages to how you spend your money, but each category is important.
2. Financially Educate Yourself
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