Building Wealth Is Not About Luck
Building wealth is often portrayed as being a matter of luck – some people seem to have all the luck in the world when it comes to making money, while others struggle to get ahead no matter how hard they try. However, the truth is that building wealth is not about luck at all. It is about making smart financial decisions and taking consistent action to achieve your financial goals.
One of the biggest misconceptions about wealth is that it is something that just happens to you, like winning the lottery or inheriting a large sum of money. While it is true that some people do come into wealth through these means, the vast majority of people who build wealth do so through hard work and careful planning. According to "The Millionaire Next Door," an enduring 1996 bestseller that continues to be updated today, 80% to 85% of millionaires are self-made.”
Not only are most wealthy people self-made, significant wealth without wealth-building habits can be devastating. Consider this: “A staggering 78% of retired football players were in serious financial distress just two years after leaving the game, according to Sports Illustrated.” Wealth is often lost if the wealth-building knowledge and habits aren’t present.
So, what does it take to build wealth? Here are a few key factors to consider:
1) Setting clear financial goals.
The first step in building wealth is to know exactly what you want to achieve. Do you want to retire early? Buy a house? Start a business? Whatever your goals may be, it is important to be specific and to have a plan in place for how you will achieve them.
2) Saving and investing wisely.
Building wealth requires that you save and invest your money in a way that will generate long-term returns. This means being mindful of your spending habits and putting your money into assets that have the potential to appreciate over time, such as stocks, real estate, and small businesses.
3) Building a strong financial foundation.
Building wealth is not just about making money – it is also about managing it wisely. This means having a solid financial foundation in place, including a budget, an emergency fund, and insurance to protect your assets.
4) Seeking professional advice.
Building wealth can be complex, and it is often helpful to seek the advice of financial professionals such as a financial planner or investment advisor. These individuals can help you navigate the financial landscape and make informed decisions about your money.
Building wealth is not about luck; it is about making smart financial decisions, setting clear goals, and taking consistent action to achieve them. With discipline, determination, and a little bit of know-how, anyone can build wealth and achieve financial success.
If you have questions on any of these topics, or would like to talk about how you are invested, schedule a time to chat with us at Redeem Wealth. We’d love to make sure you are set up for success as an investor, and taking the steps that matter most in reaching your goals.
