Why not set big financial goals in 2021? Work hard, make money, and start building real wealth. The tips below will help you maximize your dollar and double your savings while creating more space and freedom for yourself.
1. Focus on your own goals.
Here is the thing: money is not relative. It is personal. Your financial goals are unique to you. Only you can set your priorities and come up with strategies to achieve them.
What your neighbor, colleague, or churchmate does is entirely up to them. You do not know what sacrifices or loans they have taken to buy their new car or house, or what impact their spending has on their net worth or accumulated debt. The point is to stay focused on your financial goals. Forget about the Joneses.
2. Create multiple income streams.
The pandemic highlighted the importance of a diversified income stream. Most people only have one source, which is often their job. Once they lose it, all the income is gone and here comes a financial crisis.
Most millionaires have multiple income sources. Money flows in from businesses, dividends, rental properties, bonds, private notes, and capital gains from selling assets. You can also work to diversity your income this coming year. This will reduce your risks and spread your nest egg among many baskets.
3. Take some calculated risks.
Taking risks is a part of building wealth. According to data, half of Americans do not own any stocks, including pensions, retirement accounts, and college plans. Some say this is because they cannot afford it but that argument falls apart in the face of the facts. Opening a brokerage account is free and investing in index funds can start at $50.
The truth is that the average person is afraid of taking risks. They would much prefer to leave their savings to degrade inside a bank account instead of building wealth. But if you want more money, you must take calculated risks like starting a business or investing in stocks. This way, your money will make more money!