5 Do's for Building Wealth
We all want to feel financially secure, but not everyone knows how to get there—or even how to get started. It all starts by laying a solid foundation with healthy financial habits, then growing your assets over time. Here are five essential tips to help you on your journey toward building wealth.
1 Do start now
Every month that goes by without having a working financial plan in place means you're likely missing out on opportunities to add to your assets. But as the old saying goes, "The best time to plant a tree was 20 years ago. The second-best time is now."
Even if you think you're already on top on your finances, odds are you still have room to improve. Whether you're in your 20s, 30s, 40s or older, there's always more you could be learning or doing to set yourself up for success down the road.
2 Do set goals
Life goals, career goals, financial goals—they go together. What kind of home would you like to live in? Will you have children? When do you want to retire, and what will you do afterwards? Answering big life questions like these will help you set smaller, concrete goals you can work toward.
3 Do follow a budget
No one likes being told they can't buy something they really want, which of course is exactly what a budget does. But when it comes to saving your money, budgeting is actually the most empowering thing you can do.
A budget forces you to look at your money and understand where it's going and what's left. It gives you the knowledge and discipline it takes to make bigger purchases achievable and affordable.
4 Do tap into investing
Both saving and investing are important, but there's a crucial difference between the two. Your savings will grow slightly on their own, but investments can grow well beyond your original deposit—boosting your ability to achieve your long-term goals. Choosing the right level of investment diversification based on your personal goals, time frames and available assets can help make sure your money is working hard for you.
5 Do learn more
There has never been a better time to learn more about your finances. Especially in times of uncertainty, it becomes necessary. Learning more about your money—about investment options available to you, strategies for maximizing your earnings and minimizing your tax burdens, or the tradeoffs involved with every major purchase—will help you create better strategies to increase the value of what you earn.
It's up to you
Building wealth takes patience and discipline, both of which are completely in your hands. You have power here: the decisions you make today will largely influence whether, when and how you achieve your financial goals in the future.
A few financial insights for your life
This information is provided for educational purposes only and should not be relied on or interpreted as accounting, financial planning, investment, legal or tax advice. First Citizens Bank (or its affiliates) neither endorses nor guarantees this information, and encourages you to consult a professional for advice applicable to your specific situation.