By Hughes Federal Credit Union
Just like anything worth doing, building wealth is a process that involves time, dedication, and discipline. If you’re looking to build and grow your wealth, here are a few ways to get started.
Ready yourself with financial education
Financial education will empower you and give you the knowledge to help you decide which plans, investments, and other bits of advice will work best for you. Throughout your financial journey, you’ll most likely encounter conflicting investment advice or conflicts of interest, and having that knowledge will help you navigate towards the best decision.
Don’t know where to start? Start with doing research online and learn from reputable sources like Hughes Federal Credit Union’s MoneyCoach, an interactive online tool that aims to help users obtain financial independence through financial literacy.
Find ways to increase your income
If you know the basics of budget building, you know that the aim of the game is to balance your income with your expenses. While balancing might work to get you through everyday life, you’ll want to look to increase your income flow if you want to build wealth faster.
Perhaps you have a talent or hobby like design or writing you can turn into a side hustle by offering your services online. If creating multiple streams of income is out of the question, consider seeking a better-paying job or asking for a raise by improving your skillset. Much like annuities, your investment in yourself will continue to pay you back in the long run.
Cut costs and save more
An important building block to growing your wealth is your savings. Thanks to compound interest (interest earned on a loan or deposit from principle and interest earned from previous periods), the earlier you start saving, the better. If you haven’t already, create a budget that will help you eliminate any miscellaneous spending you can do without to help you put more towards your savings account. Make saving a habit by “paying yourself” first every paycheck.
Consider investing
After you’ve allocated funds to your savings according to your budget, you can begin building wealth faster by investing. The stock market, real estate, 401(k)s, and Roth IRAs are all great options to consider. If you’re not too familiar with the stock market and the risks involved, talk to a financial advisor to help you figure out the best approach for your financial status.
No matter where you are on your financial journey, we can help. Explore our wealth management options and get expert advice from CERTIFIED FINANCIAL PLANNER™ professionals on everything from education to retirement. Visit HughesFCU.org today.
