Wealth Creation – It’s More Important Than Ever Before

Wealth Creation

In uncertain times we suddenly remember that the endless pot of money we thought we might have planned for is not so endless and that monthly salary that kept everything ticking over, is not ticking so much anymore either.

How To Make Better Financial Plans

Before you can fix the problem, you first need to know that there is one and far too many of us fell into the trap of thinking that as long as we had that monthly pay date, we could roll over loans, credit cards and mortgages to keep funding our short to medium-term financial ambitions. Now, we know better and know that we know better, it’s time to put our hard-earned lessons to work. Knowledge is power so here’s how you start planning for your financial future.

  1. Time to look in the “truth mirror” and take an honest and we do mean honest look at where you’re at with your finances, right now. You can do this by conducting a real-world audit of your and your family’s finances by taking stock of all of your sources of income, your expenditures and really importantly, your credit arrangements. All of them.
  2. Where it’s possible, speak to creditors about entering new agreements with renegotiated interest and payment terms to free up some monthly cash flow. Most creditors will hear you out, especially if you’re in a bit of trouble – don’t wait for them to call you.
  3. No matter what the bottom line turns out to be, do not freak out. Nothing will send you back into that ostrich hole in the sand faster than finance-related anxiety. Now you know and with that knowledge, we can begin getting you back out on top.
  4. Using all your newly acquired personal financial data, it’s time to start plotting your future and if the dollars and cents don’t add up, it is also time to start supplementing your income.

Saving Your Way To Additional Income

Wealth creation isn’t just about how much money you make, but it’s also about how much money you save and this is where things can get a little tricky for many American families. The accepted “knowledge” is that if you’re not saving a ton of money, you’re never going to get anywhere and nothing could be further from the truth.

“Acorns” is a savings and investment app that has modernized the old method of “saving all your spare change” and it invests these amounts for you. You’ve probably heard of them and you may be asking is Acorns worth it? By all accounts, the answer is a resounding yes. As with any investment or savings portal, there are management fees and you should engage with the app to mitigate against this, but if you’re a hands-off investor and not quite in the market for trading stocks online, it’s a great place to start.

There’s never a better time than right now. You’ve heard that 100 times before, and it’s as true now as what it’s ever been and even if you’re just starting out, this is where it all begins.

Your future starts now, with or without, but with…is better.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.