5 Ways for Entrepreneurs to Build Wealth Faster

5 Ways for Entrepreneurs to Build Wealth Faster

by -
Financial Success and money decisions

Most people today spend more than they earn and also have credit card debt that is spinning out of control.

As an entrepreneur, it’s especially easy for expenses to spin out of control and cause instability in your personal life. No matter what kind of business you own, and how much money you already earn, its always important to go back to the basic principals of building long term wealth.

Many times, the process doesn’t even involve as many difficult sacrifices as people might think. It can require some patience and a little planning, but with these five tips any person can find themselves on the road to building a strong foundation of wealth.

 

1. Save More

This tip should come as no surprise. If you want to have more, then you have to save more. The goal should always be to save 20% of the money you make every month. For some people, this simply is not possible, so shooting for 10% (or even less and than scaling up each month until hitting 10%-20%) is acceptable.

Remember to be conservative both in your small and large purchase decisions. The old idiom to not be penny-wise and pound-foolish is very important for business owners. It’s an easy tendency to look for the hardest bargain on paperclips and office supplies while recklessly spending larger amounts of bigger expenses before they are even necessary.

Wait 30 days to make a large purchase and this will give you the best clarity in your decision making.

 

2. Invest Right Now

Saving money is a great first step, but no one becomes wealthy from putting their money into a savings account. As soon as you set money aside for the month, invest as much of it as you can.

The sooner you start earning returns on your money, the faster you will build wealth. Invest in a variety of different assets, and create a diversified portfolio.

Also, never spend your investment principal.

 

3. Pay Off That Credit Card Debt, Now

Credit card debt means lots of credit card interest. Many times that interest is as high as 21%. Avoid the damage this high interest is likely doing and start paying off your credit card debt as fast as possible, and keep your charges to a minimum.

It can really add up over time.

 

4. Track Your Expenses… And Take Time To Review Them

Write down every expense down to the penny. Do this every day, and at the end of the month take the time to review it. You may be surprised to see how much you are spending on things like eating out or shopping.

For some, these expenses can add up to more than their ‘big items’ like utilities or mortgage payments. Look at areas you can cut and think about places where you are spending money wastefully.

A few simple cuts here and there can really go a long way.

 

5. Set a Monthly Goal, and Stick To It

At the beginning of every month, you want to set what is known as a “wealth goal” for how much money you want to have in your savings and investment portfolio at the end of the month. Write it down somewhere where you will see it and look at this goal every day. Put in the work, hustle and do what it takes to meet that goal.

At the end of the month, you will love the feeling of satisfaction you have over meeting your goals and will find that you are quickly building up a great deal of wealth.

 

Don’t forget!

These tips are changes that any entrepreneur can easily make to their lifestyle to start multiplying their wealth and running a more profitable business. But they don’t work unless you do the work, so start implementing now!

10 COMMENTS

  1. Do you know about a software I can track my daily expenses? If you know, please share it. I’m looking for a software to track my expenses. I really don’t want to use pen and papers to do this.

  2. I think one of the best ways entrepreneurs can build wealth is by saving, saving, saving! It’s so easy to live bigger in this world but choosing quality over quantity and minimizing purchases is the best habit to learn. It can be so very difficult as we all have triggers but avoiding those or learning new ways to get fulfillment is the best way to break overspending habits. The best place to start is on the biggest expenses as that will make the biggest impact. Great article and great topic!

  3. I’m wondering what would be the best option for me to grow my business. I have around $25k in my bank account and I want to invest in my business to grow faster but also I want to pay my student debt ASAP. I can’t decide which way go, any suggestions?

  4. Hello Neil.

    Neither invest nor pay off the loan with all that cash. Divide the cash with you into reasonable percents. Make a decision with yourself and the creditor involved to settle the debt bit by bit. You can choose to spread the debt load through 4 months: $4000 each for the first 3 month & $5000 for the last month. While doing this, use the other percents for important things in your life (such as investments, necessities amid others).

    I believe I have been able to help.

  5. Alright, this is cool stuff. Ah, well in the 2015 business years the entrepreneurs are now heading to start ecommerce business and specially they are in mad on custom ecommerce solutions. This is very nice tips for young entrepreneurs for fresh start up.

  6. Hi there, nice tips. Specially second on invest right now. For my bussines; I am investing all the time, but it looks I will have to take the courage and invest not only time but also some money. Thanks, Matija, Slovenia.

  7. Hey Paul,

    Do you suggest paying off student loans before investing? Right now, I have about $14k to spend. My student loans stand at $17k or so right now. Should I pay down that debt, or should I invest all of the $14k? Your thoughts?

Leave a Reply