Credit: Pauline St. Denis
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To gain true wealth—the type where your money can sustain a generation or two—you must set aside a portion of each paycheck for long-term growth. It’s time to change our mind-set so that we can change our bottom line. Three ways to start:
Invest in real estate.
Sure, the market is shaky, with the number of foreclosures rising every day. But the smart investor buys when everyone else runs away. Buying and holding, leasing options, purchasing mobile homes, and wholesaling are just a few of the many ways to get into real estate. Learn how investors are heating things up in this cool environment. (See “Get Rich in Real Estate,” November 2007.)
Survey the stock market.
Discretionary income is what’s left after you pay fixed expenses like your rent or mortgage, car note and insurance. You have the flexibility to decide how much of it goes toward food, entertainment, hair care and so on. Use that spending muscle to pump up your portfolio. For instance, forgo the Friday dinners at Red Lobster and buy stock in its corporate parent, Darden Restaurants, Inc. (DRI), instead. Stocks averaged returns of 11.94 percent annually between 1985 and 2005, according to Morningstar, an investment research firm. That’s higher than the Lotto, a savings club and certainly a savings account. Start by investing small amounts monthly through plans at Sharebuilder.com.
Build a business.
Start a side hustle that you really enjoy. If you love to cook, write or teach, it’s easy to parlay those skills into becoming a caterer, an online blogger or a tutor. Log on to Powerhomebiz.com and enter “part-time businesses” in the search box for information on side hustles. You don’t have to start your enterprise on a grand scale, but if you’re going to do it, give it the full attention it deserves. Too often we get a bad rep for not minding our businesses. Be sure to have excellent customer service, gain access to adequate financial resources, and watch the bottom line. Read “The Entrepreneur’s Start-up Guide” (February 2008) for inspiration.
Are you building your way to being wealthy? These tips or others work for you? Share your story below.
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