7 Ways To Build Wealth
If you’re looking to build real wealth, Ramit Sethi has the playbook. The New York Times bestselling author of ‘I Will Teach You To Be Rich’ and host of Netflix’s ‘How to Get Rich’ has made a career out of distilling practical wealth-building advice for the masses. His no-gimmicks approach focuses on taking deliberate steps over time to achieve substantial wealth.
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“This isn’t about overnight success,” Sethi wrote in a blog post. “it’s about making deliberate, smart choices that lead to substantial wealth over time.”
Here are seven of Sethi’s top realistic wealth strategies:
1. Create A Personalized Financial Plan
The foundation is developing a financial blueprint tailored to your specific goals and vision of wealth. “Forget cookie-cutter advice; this is about what wealth means to you,” Sethi advised. Set clear targets like paying off debt or buying a home, and build a simple, actionable plan to achieve them. Review and adjust as life changes.
2. Start Saving Immediately
Thanks to compound interest, the sooner you start saving, the more your money grows. “Even a small amount saved consistently can snowball into a significant sum over time,” wrote Sethi. Treat saving like a recurring bill by automating transfers to keep building your wealth on autopilot.
3. Prioritize Debt Management
Debts like credit cards are “wealth killers” according to Sethi. Map out a plan to strategically pay down high-interest debts first. Look for opportunities to apply extra money like bonuses or side gig income towards eliminating debt faster.
4. Increase Your Income
A raise or new higher-paying job can “add rocket fuel” to your wealth machine. Sethi recommends exploring ways to boost income through promotions, job switches, new skills training or side hustles. Multiple income streams diversify and amplify wealth.
5. Build an Investment Strategy
“Make your money work for you” with a diversified investment strategy across different asset classes. Stay informed on market movements but avoid reactive decisions — patience and commitment to your plan are key for growth.
6. Plan for Emergencies
Having a financial safety net protects your wealth plans from going off the rails due to unexpected events. Sethi advises an emergency fund with 3-6 months worth of expenses, plus appropriate insurance coverage.
7. Get Professional Advice
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Don’t go it alone — seek professional financial guidance, especially for complex situations. Investing in financial advice can provide clarity and optimize your wealth strategy.
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This article originally appeared on GOBankingRates.com: Ramit Sethi: 7 Ways To Build Wealth
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