Guest Author - Sharon Michaels
I read that the average working man or woman in the United States will have more than $1 million of earned income slip through their hands during their career years. This isnít including interest on investments, the appreciation of their home and other forms of passive income. Thatís an eye-opener!
One million dollars of earned income! If thatís not a major wake up call to do something about taking control of our finances, I donít know what is.
Isnít it time we get serious about building our personal wealth? According to Social Security statistics, only two percent of working Americans actually achieve financial independence by or before retirement age. Why? Is it lack of education, complacency, procrastination or just not wanting to face reality?
Letís not be part of that 98% who donít feel in control of their financial future. Hereís a look at some ways we can get serious about building wealth:
Pay yourself first. The first step to wealth building is developing the habit of paying yourself first. Itís basic and itís important! Taking at least ten percent right off the top of all income you receive should be a permanent habit. This means before you pay bills, spend money or go on that vacation, you pay yourself first. This ďpay yourselfĒ ten percent should become untouchable.
Develop a wealth-building plan before you invest. This sounds logical but it can be an often over looked step. Before you see the financial planner, stockbroker or other financial professional, know your short and long term goals. What do you want your lifestyle to be like in ten, twenty or thirty years? Your financial professional canít personalize a wealth-building plan if you donít first have a clear picture of what you want to accomplish with your money.
Study and learn about personal finance. Itís important to understand what is happening to and with your money. The ultimate responsibility for caring for your money is yours. Subscribe to finance magazines, read the books and even attend classes. Itís your money! Become a serious student of personal finance. Self-education and getting qualified financial advice is an unbeatable wealth-building combination.
Develop a cash cushion. A very general rule of thumb is that you should have at least three to six months of cash reserve in case of emergency. Thatís three to six months of mortgage payments, bill paying, medical expenses, etc.
Take an interest in the current economic situation. Whatís happening around you economically is affecting your future bottom line. Gasoline prices, interest rates and home sales, are all important factors in your savings, investing and spending plans for the future.
Becoming wealthy is about slow and steady. Wealth isnít so much about how quickly you can accumulate money as it is about keeping money. You want to focus on building a solid base of wealth. The key is to develop a sensible, believable plan Ė a plan you will stick with for years to come.
Itís time to get serious about our wealth-building future! Letís not be in the 98% of the population who worry about outliving their money. Now is the time to systematically and wisely take control of our finances. Itís up to us to become and stay proactively involved in our financially prosperous and abundant future.
I highly recommend "Smart Women Finish Rich" by David Bach.
Hereís a link to Amazon.com read more about Smart Women Finish Rich Smart Women Finish Rich
You may want to take a few minutes to visit my website www.SharonMichaels.com for more empowering suggestions, tools and tips.