Three Wealth Creating Principles

A majority of wealthy individuals will agree that wealth creating isn’t just about what you bring in but it’s also about what you send out; what you are spending.  If you spend as much as you make each month, then you really aren’t that wealthy.

Being wealthy isn’t about what you have necessarily, but it’s having the option to buy what you want when you want it or investing in a prime opportunity as it appears.  In order to do this, you must have some capacity to save money and/or invest money.

Not too long ago, Wealth Magazine published three principles for generating wealth.

1.    Pay Yourself First. It’s easier to spend money than to save it, but sending the first cut of your profits to your savings account will make it that much easier.

2.    Pay Off Credit Card Debt. It’s better to never accumulate debt, but that’s often not possible.  You should look for a credit card that has 0% interest when paid in full each month and there’s no need to have more than 2 low interest credit cards.  Any more than that and your goal should be to pay them off and then get rid of them.

3.    Invest Money In Growth Opportunities. Stocking away your cash is good, but investing your money so that it can grow, maximizing every dollar you’ve worked hard to save is better.

There are many other principles to apply to your finances that can help you generate wealth, these are a few key ones to get you started.