It can be confusing to figure out where you are in your money journey. What steps should you take to start building your wealth, what should you do next?
Here are three easy to steps to follow through, for fool-proof financial success.
1. Make Money
This is the most straightforward step.
It applies to those of us who have not quite started their career, or perhaps have identified their lower income as what is stopping them from reaching their money goals. In this step, the idea is to not only make money but also put down a foundation to do so. It is all about developing in-demand skills, creating networks and providing value in the workplace.
2. Save Money
The first step of saving money should always involve an emergency fund of some type. An emergency fund is a pool of money saved specifically for emergencies, the recommended amount is often 3 – 6 months living expenses. I personally would not make any large purchases or invest money until this fund has been created.
Once this has been established, the next step would be to save for upcoming, large, short-term expenses. This could include anything from your annual car registration or a wedding.
3. Invest Money
So, you’re earning a substantial income. You have an emergency fund and are regularly contributing to other savings goals. What is the next step in your money journey?
Investing money is the key to create wealth in the long-term. Starting early and investing often can transform your financial future significantly. Getting started with investing can be intimidating! However, with research and education you can become confident on how to work your way around the market.
No idea how to get started? Check out my articles below on how to invest money!