We have made it! We are at the fifth and final week of this Money Series! I’m excited – are you? Let me officially welcome you to Episode 14 of the Life Lessons on a Sunday podcast. I’m your host Jaimeson. Today we are going to be talking all about Building Wealth and I’ll be sharing some tools that will hopefully help you along the way! Without further ado, let’s get started …
If you don’t already know, I LOVE MONEY! Talking about it, budgeting it, saving it, giving it, spending it and building it! Before we dive into today, let’s do a quick checklist on what we’ve already covered in this money series …
Week One: We discussed our relationship with money. Yes, I said your relationship with money. I have definitely learned a lot about my relationship and thought process when it comes to money and how that entwines with my husband’s. This is important because we put all of our money together and spend it together, so we both get a say, so both of our relationships with money come into play. Okay, before I really get going, let’s recap week two.
Week Two was making sure that you have your $1,000 Emergency Fund and some ways on how to get there fast!
Week Three: Money Travel Tips! Do you love to travel like I do? Then I hope this episode gave you a few tips to consider.
Week Four was all about your Retirement Goals and making sure you plan now for where you want to be when you retire. Remember it doesn’t matter if you are 20 or 60, we can always be working toward “Livin’ the Dream”!
And finally our Series Statement that we are saying and filling in every week …. “If I had more money, I would ____________”
To help us have more money … we have to build our wealth! If you’ve been following along and working on Weeks 1-4, then you are well on your way!
Let’s start today with a LIFE LESSON: The tortoise wins the race! One foot in front of the other always moving forward will get you to your goal.
Now, I’m not saying you have to move at a slow pace – in fact, I think we should constantly be thinking about and working towards our end goal, but we need to remember that it doesn’t happen overnight and that we have to stay the course!
So what does it really mean to build wealth?
It means you are financially stable. You are not only taking care of your current family, but you are building or have a legacy for future generations.
It means you have diversified assets so that if something happens (i.e. you lose money or an asset) in one area, you are secure in other areas.
It means that you are not a slave to the lender and are debt free.
One main thing – if not the main thing – for us to recognize as we build wealth is our money habits. We have to tell our money where to go and be consistent in making it work for us, not against us. Have you ever heard the saying …
Rich people plan for three generations. Poor people plan for Saturday night.
It was said by Gloria Steinem and I absolutely love it! It is so true if you think about it!
So, what are some ways for us to build wealth? Well, first things first … WE MUST GET OUT OF DEBT! Here’s something to think about …
The borrower is slave to the lender. (Proverbs 22:7)
Think about that. Currently, me, personally, I have about 4 lenders, unfortunately. They all expect a payment every month, which means that I have to work a certain amount every month to have that money to pay them. If I didn’t have that car payment or house payment, then I would have one less boss and I would then be telling my money where to go instead of it telling me that I have to pay this bill or that bill. See, where I’m going with this?
Once you are out of debt (well, everything except the mortgage), you can start building that wealth! Create a nest egg of about 6 months living expenses in a high yield savings account just in case that rainy day turns into weeks or months! Then, start investing up to 15% of your income into your 401K plan (preferably Roth if they offer it). Next up is the house. Get that mortgage paid off as fast as you can!
Once you’ve completed those items … it’s the fun part! Now, you are really going to start telling your money what to do and how much to grow. You can start diversifying and adding to your investment portfolio, start mutual funds, invest in real estate, and so much more. The main key is to grow and build on what you’ve already started and keep your money habits that got you to this point! It’s not going to be easy to get here, but it really can be simple.
BRING IN MORE MONEY THAN YOU SPEND = SAVING AND INVESTING = INTEREST AND COMPOUND INTEREST OVER TIME = WEALTH
See Simple. Just not easy.
So, I have compiled a few resources that will hopefully help the building process a little easier.
First, you need a budget! You can start with just pencil and paper. Writing out what your income is every month and then deducting what your bills are. We have to start somewhere and know what’s coming and going so we can make a plan and start spending and saving wisely. If you aren’t into pen and paper, then Excel Spread sheets are good as well. If you aren’t a fan of Excel, then I have found that the EveryDollar app is wonderful and it’s Free. This is right on your phone and always at your fingertips! There are many, many more budget creating resources available, so make sure you find one as the best budget is one that you will actually use – just make sure that you use one!
Second, get around like-minded people! I’m personally a fan of Dave Ramsey and his group, which teaches Financial Peace University, has wonderful books (check out the Dave Ramsey Page ), online tools, a great podcast, some facebook groups and more. But hearing from others that are on the same journey or that are ahead of you in building their wealth and that will keep you accountable is HUGE! Plus, you are constantly learning. I’ll link to Dave Ramsey and Financial Peace University
Third, You need to get or update your Will. As you are building wealth and your assets are growing, you need to make sure they are protected. Should something happen to you, you need to make sure that your family knows your wishes, but most importantly, you don’t want the government to come in and take control of your assets and make your family go to court to get them. Heath and I are actually in the process of updating our Will as we become closer to debt free and building our wealth. We are using a company called Legal Shield (get a link to Dad’s page). They are very easy to work with and as a side note, we also have our Identity Protection with them.
Forth, I highly recommend that you get a financial advisor – someone that can help you navigate the waters per se. Stephen with Boyd Wealth Management helps with Investments, Estate Planning and Life Insurance. You can learn more about Stephen and if he is a good fit for you at www.BoydWM.com. If you don’t reach out to Stephen, please reach out to someone. We aren’t meant to do this or anything on our own. As I always say … Teamwork Makes the Dream Work!
Time for our THOUGHTFUL TIDBIT. Today, I’m going to leave you with some very inspiring quotes from people who have been there, done that …
If you are going to have a real dream, you need a real plan. — Chris Hogan
Never depend on a single income. Make investments to create a second source. – Warren Buffett
Your decisions from today forward will affect not only your life, but also your entire legacy. — Dave Ramsey
Until Next Sunday …