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How to Build Wealth for Beginners: 5-Minute Plan to Get Started

Photo by Morgan Housel on Unsplash

This post is for those who have always wanted to build wealth but don’t know where to start. Building wealth for beginners is easier than you think. In the next five minutes, you can have a plan of action to save more money and start investing in your future. Read on and find out how.

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Mindset Shift

The first step is to shift your mindset. There is no limit to how much wealth you can create. You need to acknowledge that you are able to generate wealth at whatever level you desire, even if you do not have wealth right now and it’s going to take some work to get there. Wealth is created by taking risks and investing in yourself, your family, and your future. Adopt a long-term view and don't get whipsawed by short-term fluctuations. It may not be on your first, second or nth time, but if you have the right mindset, you will undoubtedly create wealth for yourself and your loved ones.

It all starts with your thoughts and beliefs about money. If you believe the world owes you something, then you will think that money is meant for someone else and not for you. If you want to build wealth, this mindset needs to change. Develop the right mindset, and implement the right strategies.

Create a plan

Planning and goal setting are the next steps to building wealth. You need a plan that outlines what your goals are and how you will reach them. One of the best ways to create a plan is to start with your end goal in mind. Once you have that, you can break down into smaller goals and work your way up to bigger ones. Make sure you set realistic and achievable goals so that you can build momentum as you go along.

Be a producer not only a consumer

Gaining wealth results from shifting from being a consumer to becoming a producer.

You need to add value to the world in some way and be compensated for your creations. Be it a physical product, a digital product, a service or a combination of all, it's time to open the flood gates and start receiving money, not just spending. This is where things can get a little sticky as people tend to fear sales.

There is an easy secret training to get over any reluctancy to sales. Go through your house and find items you haven't used in a while, ask yourself "Would I rather keep this or convert it to cash?" Once you have your items, take pictures and list them on Facebook marketplace. This will give you a chance to practice negotiating and selling online. The moment you make your first sale online, you'll realize it's not that difficult.

Know your priorities

It’s important to know what your priorities are and how much money you want to make. For example, if your priority is to be financially stable and secure, then it might not be worth investing in a more risky investment strategy. However, if you want to become rich with wealth of over $10 million, then it might be worth the risk. Wealth is personal, "rich" means different things to different people. What does it look like for you? It's not just about a dollar figure, $1,000,000 with no quality of life may not feel like wealth, whereas $100,000 with the perfect quality of life can feel a lot richer.

Automate it

When it comes to financial goals, many people are tempted to automate the process. Automating your finances can help you save money because it curbs impulse spending and forces you to pay yourself first. If you are saving 20% of your income every month by automatically transferring funds, it will take some time before you start seeing the fruits of your labor. However, once you give yourself enough time and make a habit out of saving that 20%, you will eventually see results. Remember to always be playing the short and long games.

Ready, set, go get rich!

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