5 Super Wealth-Building Tips Pave the Way to Financial Freedom
STARTING A BUSINESS IS SO SIMPLE
Here are five super wealth-building tips for the success-minded individual…
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There are so many things involved with building wealth that it would take much more than one article to explain it all. So, we’ve put together a simple five-step guide to help you get a great start in building wealth for a lifetime.
Step 1: Set Specific Goals
Goal setting is a task that can be easily put off – especially when you are extremely busy in day-to-day activities. However, goal setting is the first and one of the most important steps you’ll take to achieve wealth.
Set both short-term and long-term goals. Short-term goals may be daily, weekly and monthly goals. These should reveal where you would like to be financially by a certain time in the near future.FREE INFORMATION
Long-term goals include the amount of wealth you would like to accumulate within a year, two years, or maybe even five or ten years. Both types of goals are necessary to build wealth.
Without goals, you are wondering blindly with no care or thought of what’s ahead. This pattern of life is sure to leave you empty-handed!
Step 2: Create a Business Plan
Every successful business from the past and today started with a plan. Your business plan should illustrate where you are now, where you plan to be in the future, and how you’re going to get there. Write these few notes down on paper. Then, fill in the blanks to create a rough business plan. It’s easier than you think.
*Your current income
*Business profits and expenses (if you already own a business)
*Business budget (or personal budget if working for someone else)
*Capital needed upfront to promote and operate business
*Plans to acquire the capital needed (source of capital)
*Spending plan (promotions, supplies, inventory, online expenses, etc.)
*Expectations (What results do you expect from your initial efforts?)
Creating a business plan is a necessary step to build wealth through your own business. Even if you don’t own a business, you should write down a similar plan to reach your personal wealth goals.FREE INFORMATION
Step 3: Avoid Harmful Debt
Debt is the one of the key reasons many people never accumulate wealth. But remember, there are two types of debt: harmful debt and necessary debt. Harmful debt is the debt you create for things you do not need such as excessive shopping, luxury items, expensive cars that you can’t afford, etc.
Necessary debt is a debt most people must have to live, such as a mortgage, car loan (affordable), medical, college, etc. These debts are a part of life for most families and will be for many, many years. However, even these types of debts should be kept well within your income limitations.
If you can only afford a $250/month car loan, then shop around until you find one at this price. Don’t give in to the temptations and pressures to buy the fancier, more expensive car with a $450/month payment. It’s not worth the risk!
You may ask, “I thought these steps were for building wealth?”
As it happens, debt is the opposite of wealth. The more debt you have, the less wealth you will accumulate. You can’t save money or invest money that belongs to someone else. If you earn $3,000 in income this month, but owe $2,000 in loans (before everyday living expenses), you can’t possibly have extra money to save.
You must either earn more or sell some items to pay off your debt. You should avoid this “debt trap” if you intend on building wealth for the future.
Another type of debt is one for your business. You may take out a small business loan to get things started or to promote your business. If you are uncertain about whether the business will bring profits, try to avoid business debt until you have tested it a while.FREE INFORMATION
Step 4: Develop a Personal Plan
Above, you developed a business plan. Now it’s time to create a personal plan. What tasks will you do daily to build wealth? Put yourself on a schedule and a strict budget. Work toward your goals daily by making a list of things to do and marking off each item on the list as you complete the tasks.
In your budgeting, include a set amount of money you will put away in savings (savings account, IRA, stocks, bonds, etc.) If you plan to invest, be sure to diversify your investments. Choose only one or two high-risk investments and several “safer” investments such as mutual funds or bonds.
Step 5: Stay focused on the Goal, not the Circumstances
No matter what circumstances you find yourself in, keep your eyes on the wealth-building goal ahead. Even if sales are down in your business, don’t stop dead in your tracks. Remember, businesses have ups and downs. If you remain steadfast toward your goal during the slow times, the busy times are bound to be much better than ever.
Your income will grow and you will have the extra money needed to reach your wealth-building goals.
In a nutshell, building wealth does not happen over night with one get-rich-quick program. It happens with consistent labor toward the goals and tasks you have created. FREE INFORMATION
You can build wealth for your future if you do not waver from these basic truths that have worked for millions of others!7 Step Plan To Get Going With Networking
When used wisely and appropriately, networking is one of your most cost-effective business building tools. But, don’t approach it as a method to sell.
Networking is the process of creating relationships where you can help others achieve their goals, and they can help you achieve yours.
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Whether you’re an introvert or an extrovert, feel like you have the gift of gab or just don’t know how to make small talk, networking know-how is very important for your business success.FREE INFORMATION
There is a notion in business that I believe most of us subscribe to that says “all things being equal, people will do business with and refer business to those they know, like and trust.” And the key to this is obviously being able to develop relationships.
Think of networking as the cultivation of mutually beneficial, win-win relationships. In order to be win-win, there must be GIVE and take (notice the emphasis on give).
Networking shouldn’t be viewed as “events” where you go to sell your business. When effective networking is taking place, the parties involved actively share ideas, information, resources, etc.
Ok, so you know that you should be networking because it is one of the most cost-effective lead generation activities when used wisely, appropriately and professionally.
But, maybe that seems easier said than done. Here’s a seven step plan to really get going with networking for your business.
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Check out several groups to find the best chemistry and perceived value. Most groups will allow you to come and visit at least a couple of times before you have to join. Go and ask around to find out why others have joined and what value they get out of belonging.
Resist the urge to just go join the Chamber of Commerce simply because everyone tells you that’s what you need to do. If that’s not where your target group can be found, then you might just be wasting a considerable amount of time (and money).
I’m not telling you not to join the Chamber. Just be clear about what you’d like to get out of this or any other group. If it’s to find prospective clients or referral sources, then you need to be networking where those resources can be found.
2. When you find a group or two, join and go to all the meetings you can. Don’t go just once or twice expecting things to happen and then if they don’t quit. Building mutually beneficial, win-win relationships will take some time.
The contacts you make need to constantly see your face and hear your message. Continual contact with others over time will open up opportunities for you to go deeper and learn more about each others thoughts, ideas and capabilities in regards to your respective businesses.
Know, like, and trust generally only happens over time. Being regular and persistent will pay off.
3. Get involved – be visible. Do as much as you can to make yourself more visible within the organization. Volunteer to help with meetings, be on committees, or become a leader or board member.
Being involved does a couple of things for you and your business. First, you’ll get more opportunities to establish connections and get to know some of the contacts you’ve made even better. Secondly, the higher the visibility you have in the group, the less you’ll have to work to make new connections.
Instead, as new people come into the group, they will likely seek you out because they view you as a leader within the organization.
4. Keep your circles of contacts informed. Don’t just assume that running in to someone once a month (or even once a week) will cause them to start doing business with you or sending it your way.
You need to let them know what’s going on when you’re not at that particular group in order to inform and educate them.FREE INFORMATION
Send them invitations to your events or open houses. Send them email or letters to share big news or success stories, especially anything of relevance to them or those in their networks of contacts.
If you believe that you have valuable ideas, information and resources to share with others, then doesn’t this just make sense?
5. Work at GIVING referrals and sharing valuable information. That’s right, you need to be willing to GIVE before you get. That means you need to get to know other members and what makes a good prospect for them. What kinds of information might you have access to that could be useful to them?
You may initially think you don’t have much of value to share with others (besides your business and what you provide). Part of the key to getting good at giving is to not make assumptions.
For example, don’t assume that some basic resource (e.g., a web site) that you’re aware of is familiar to someone you might be talking to just because they are the “expert” in that field. Be willing to ask if they know about the resource and ready to share if they don’t.
Want to get better at actually giving referrals? Here’s a simple question to ask someone you’re connecting with. “How am I going to know when I meet a really good prospect for you?”
Just the fact that you are willing to explore giving will elevate your know, like and trust factor.
6. Focus on Quality, not Quantity, Quantity, Quantity. It’s not necessarily about the number of connections you make, but about the quality of the ones you do make. Are they mutually beneficial, win-win relationships?
Quality connections will be identifiable because all involved parties will be actively sharing ideas, information, and resources. Yes, it is true that you need to spend some time and effort getting to know the other person(s) and what’s important to them.
But, you also need to be clear and actively thinking about what information or resources you want and need.
Staying in touch with and following up with a smaller number of quality relationships will generally be much more productive than trying to follow up with a larger number of superficial contacts.FREE INFORMATION