Top Financial Tips to Create Wealth
25 financial tips guide to help you build and understand wealth.
1. All beginnings are difficult: Financial change is never easy, but all journeys start with a single step and financial success will come to those with the courage to start.
2. Being wealthy is all about consistency: Steady and continual advances in ones finances, coupled with avoiding common financial mistakes, will lead to long term financial success over trying to getting lucky by capitalizing on hot stock tips or market movements.
3. Find a trusted mentor or advisor: Finding someone who can help guide you in your pursuit of wealth will go a long way toward avoiding financial mistakes. Remember a wise man learns from the mistakes of others, a fool is someone who insists on learning only from their own mistakes.
4. Never lend money if you cannot afford losing it: Always consider the consequences should the loan not be repaid. Learning when, how and to whom to lend money is critical to long term financial success.
5. You must save a portion of all you make: Living on 100% of your income will only turn you into a consumer who lives in the moment with no assets or emergency reserves. Wealth is only acquired by those who are who are visionaries who are concerned with their future financial wellbeing.
6. Becoming wealthy takes work: A financial plan, discipline, and sound financial decisions are all required to become wealthy. Nothing worth accomplishing comes easy but those who seek wealth will be successful as long as they are persistent and maintain a personal focus.
7. Investment principal number one – Learn to protect your money: Protecting ones money from loss takes an understanding of how insurance works and by learning with whom, where and how best to invest your money.
8. Take advantage of financial opportunities: Along the path toward reaching your desired goals opportunities will be presented with many financial opportunities knowing which to take advantage or to pass on will impact how fast you accelerate down the path to financial success.
9. Create your own luck: Luck is defined as preparation meeting opportunity. Luck comes to those who can properly calculated risk and evaluate opportunity.
10. Avoid procrastination: Waiting for tomorrow to start to improve your financial future will only guarantee the continuation of your current finances. Remember, what is always coming but never arrives? TOMORROW. The sooner you start planning your future the quicker your money will begin growing and working for you.
11. Investment principal number two – Never invest in any investment promising impossible returns: If the return is too good, most likely it’s too good to be true.
12. Investment principal number three – Find ways to invest your money that brings dependable returns: Big changes in annual returns lead to emotional and poor investment decision making.
13. Investment principal number four – Never invest in anything you don’t understand: Always be cautious and knowledgeable before investing your hard earned money. If you invest in something you don’t understand, you have no one other than yourself to blame when it goes bad.
14. Money is valuable only when combined with knowledge of how to use it: Money given to a person with no experience or know how will shortly resort in the loss of such money.
15. Money is easy to lend: Anyone can lend money but getting paid back is difficult. Lending money is only safe when those who borrow it have possessions that are more valuable than the money being lent. Better to be a little cautious than to have great regret when lending money.
16. Asset Protection: Assets without proper protection tend to lead to no protection and more importantly no assets.
17. Creating a financial plan is essential for financial success: Action without planning is wasted action. A plan is key tool for anyone trying to build wealth or repay debt.
18. Financial Priorities: Those who are more concerned with borrowing rather than repaying debt are doomed for an ill fortune.
19. Always establish a budget: Spending without establishing a budget always leads to unconstrained spending. Budgets are similar to coats. They come in all sizes, shapes and details. Finding a one that is comfortable and fits you is what is important. As you mother told you when growing up, never go outside without your coat on, never start a calendar year without establishing a budget for the year.
20. Investment principal number five – Diversification: Concentration of wealth brings big risk. Diversification of investment holdings is what provides safety.
21. Patience: Those who are able to be patient will have the best opportunity to become wealthy. The more you feel you need to make a quick decision the more likely you are to make a poor decision.
22. Indulgence: Life is filled with many pleasures for one to enjoy. The problem with indulgence of all kinds is that after a while the amount of pleasure extracted from the same amount of indulgence decreases. To experience the same satisfaction, one must spend more effort, time, and money on an indulgence. This means that money can easily be diverted from long term goals to focus more on the present and the consumption of wealth. Indulgences should be earned before being enjoyed.
23. Only through failure and hard work is success earned: Failure is the price one pays for trying something new or difficult. If there is no chance of failure, chances are there is little chance of success.
24. Benefits of Free Enterprise: Any man under free enterprise has the ability to start with nothing and build wealth into something great.
25. Push yourself to Grow: Only you can stop you from success, no one fails who has persistence, confidence, and determination. Staying within your financial comfort zone is not where financial magic happens.
Note: The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendation for any individual. Please remember that past performance of investments may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this newsletter (article), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this post serves as the receipt of, or as a substitute for, personalized investment advice from Vermillion Financial Advisors, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed within this newsletter to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request.
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