5 Steps to Start Building Your Wealth in 2021

Do you keep thinking “why am I always broke?”

Photo by Mathieu Stern on Unsplash

1. Define your financial goals

It is hard to manage your money when you have no clear goals in mind.

Author’s screenshot
  • Use public transport more often, instead of driving or using Uber,
  • Do meal-prep for lunch, instead of going to the nearby restaurant,
  • Look into long-term plans rather than plans for the weekend.

2. Earn passive income

We live in a world where one source of income (e.g., your full-time job) is not sustainable. The costs of living rise faster than salaries do, plus the uncertainties (e.g., COVID-19 pandemic) can leave many without a source of income.

  • Rent properties
  • Earn money from your website or blog
  • Sign up clients for your freelance business
  • Keep money in bank accounts that pay interest

3. Learn about investing

Investing is one of the best ways to make your money work for you. Keeping your money in a fixed deposit account is excellent, but the returns can be relatively low.

4. Don’t spend more than you can afford

One of the biggest mistakes that prevent many people from generating wealth is living beyond their means. I’ll be blunt — stop spending more than you can afford!

5. Get insurance

Get comprehensive insurance that has good coverage. Getting health, personal accident, and car insurance are very important. You want to prevent any unexpected costs that could be needed if you fall ill or have an accident.

Marketer | I write about marketing, money and personal development| Check out my marketing agency edgaraskatinas.com

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