Proven Strategies to Build Personal Wealth and Achieve Goals We Set
Financial security doesn’t happen magically. It takes planning, effort, and a shift in mindset. I know I felt l like I was constantly treading water financially, and the idea of reaching ambitious goals seems far-fetched, however, once I made a plan, it all became so clear. I’ll cover actionable strategies I used to help myself achieve success for my financial growth goals. (Please understand, this is not investment advice, and this is what worked for me. General advice is just that, general, and it can never be specific to everyone or you, the reader, in particular. If you need investment or financial advice specific to your situation, seek a professional.)
Topics to discuss:
- Understanding your Starting Point
- Actionable Steps for Finical Growth
- The Power of Saving and Investing
- Debt Management
- Additional Tips and Resources
Understanding Your Starting Point
Before aiming for growth, it’s crucial to assess your current situation. Here’s what I did:
- Track the numbers: I started by listing my income, expenses, assets (you know, things I actually owned), and debts (You know, things you owe money on). This net worth snapshot gave me a baseline figure to measure progress.
- Analyzed my spending: I scrutinized where my money was going each month. Identifying unnecessary expenses is the fastest way to free up cash for other purposes.
Mindset Shift: Building a Financial Growth Attitude
Having the right mindset is key to achieving financial success in my opinion. Here are critical shifts I had to embrace:
- Delayed gratification: Focus on long-term goals and prioritize saving and investing over immediate spending impulses.
- Abundance over scarcity: Instead of “I can’t afford it,” switched to “How can I make this happen?” This cultivates a resourceful mindset.
- Ownership and responsibility: Realizing I was in the driver’s seat of MY finances. Stopped blaming external factors and took charge. If I had 10 dollars in my hand, I am responsible for where the goes.
Actionable Steps for Financial Growth
Here are some specific actions I took that got me on the path of financial growth:
Income Side of the Equation (real things you can do):
- Maximize existing income:
- Negotiated a raise – have the mindset of “don’t undervalue yourself”
- Seek overtime or additional work within your company
- Explore freelance opportunities using your skills
- Develop new income streams:
- Start a side hustle based on your interests or skillsets
- Monetize a hobby through selling goods or services
- Rent out a spare room or offer space on platforms like Airbnb
- Continuously invest in yourself:
- Learning new skills can lead to better job opportunities or promotions
Expense Side of the Equation:
- Embrace budgeting: Many see “budget” as a bad word, but it’s just a roadmap. Track spending and allocate all dollars intentionally. Give every single dollar earned a purpose.
- Cut the non-essentials:
- Subscriptions that hardly get used
- Eating out too frequently
- Impulse buys (a big one for me)
- Seek savings wherever possible:
- Compare providers (insurance, cell phone, internet)
- Use coupons and shop for sales
- Negotiate bills where possible
The Power of Saving and Investing
- Automated my savings: I set up automatic transfers from checking to savings so it happened before I could spend the money. Again, I gave my dollars a purpose. ALL OF THEM!
- Paid myself first: Treat saving like any other bill and prioritize it. Even small amounts add up over time.
- Harness compound interest: Start investing early! This was a big failure of mine, but lesson learned. Easy to get discouraged, but I had to remember, better late than never. Remember, mindset matters!
- Understand different investment vehicles: Educate yourself on stocks, bonds, mutual funds, real estate, etc., to make informed choices. (Again, always seek the guidance of a professional for investment advice)
Debt Management
- List all debts: Include balances, interest rates, and minimum payments.
- Prioritize by strategy:
- Avalanche method: Target highest-interest debt first to save the most on interest.
- Snowball method: Tackle the smallest balances first for quick wins and motivation.
- Explore debt consolidation: This may simplify payments or lower your overall interest rate.
- Avoid taking on new debt if possible: Credit card reliance can be a dangerous cycle.
Additional Tips and Resources
- Set SMART goals: Specific, Measurable, Achievable, Relevant, Time-bound goals give you clear targets.
- Celebrate milestones: Financial progress is worth acknowledging to help you stay motivated!
- Seek guidance: If needed, don’t hesitate to work with a financial advisor to build a personalized plan.
- Utilize resources: Numerous websites, blogs, and books offer tips and inspiration on financial growth. For example, check here for my list of 5 must read books for business.
- Don’t compare your journey: Everyone’s situation is unique. Focus on your progress, not others.
Important Note: Financial growth isn’t just about having more money. It’s about:
- Security: Having a financial safety net for emergencies
- Freedom: The power to make choices aligned with your values
- Flexibility: Adapting financially as life changes
- Peace of mind: Less stress around money means better overall well-being
Smart Tools you can use:
- Todosit: The short of it is that this unique software is, in my opinion, a to-do list app that works on all your devices and ingrates them seamlessly. It does have a cost but it’s as little as $5/m with free options as well. Fantastic for staying on top of things. I mention this because I personally find that adding my finical goals to actionable daily/weekly/monthly tasks helps keep me on target. More on this later.
- Google Sheets: Its free and a must for setting out where your money comes in and where it goes. You need to be able to track everything down to the dollar.
- Popular books on the topic: Tony Robbins Financial Freedom Set, The Psychology of Money, Atomic Habits.
- Write things down: Hey, it’s a digital world, I get it, but this helps. Get yourself a good physical journal.
Conclusion
Achieving your financial goals takes consistent effort. Be patient and persistent. Small, everyday actions add up to create significant change over time. Stay informed, make adjustments as needed, and celebrate your achievements along the way.
These are the basic baby steps. Once you have accomplished this, we can move on to the next phase so be sure to stay tuned!