Fad diets and fad investing plans rarely work. They are primarily designed to separate you from your money and make the seller wealthy. Real wealth is built with sweat equity and a sound financial plan. For most people fortunate enough to be born in the U.S., or any other industrialized country, they have access to the two main ingredients to achieve financial success: 1. Opportunity and 2. Time.
Unfortunately, very few people are able to take advantage of the situation enough to even build a secure retirement. The formula to building wealth is rather simple - spend less than you earn and invest the difference. Implementation is where many people come up short. With the right focus and some positive feedback, building wealth can be much easier than shedding the spare tire around your mid-section. Here's how to do it...
Have A Plan
Many people are putting money into various retirement vehicles, but they haven't taken the time to envision how it is all going to come together and ultimately if it will be enough. We often will spend enormous amounts of time planning every detail of our vacation, but I have no idea what our estimated income or expenses will be when we retire.
As the old adage goes, ‘Everyone has a plan – failing to plan is planning to fail.' Retirement planning does not have to be complicated, but not doing it will complicate your retirement. To help you start the planning process, take a look these
FREE retirement calculators (Retirement-Calculator.xls (Excel) or Retirement-Calculator.ods (Libre/Open Office)).
Use Time To Your Advantage
Time is your most valuable wealth building asset. Everyone is born with it. Few realize its importance until they lose most of it. The asset is so valuable it can't be bought. As a value/dividend investor, I have learned that time can cure many mistakes and provide enormous investment leverage.
When you are young time is your friend. It allows to recover from mistakes. It educates you and provides you with valuable experiences. However, time is a double-edged sword that can also work against you.