No matter how 2011 was, you will be quite focused about making 2012 a year of building wealth. You can build wealth if you are able to take control of your debt, reduce unwanted expenditure and supplement your income. Here is how you can start a budget to build wealth
1. Use the Money Manager software – Your bank may offer personal finance budget software or you can download an independent one. With this, you can track your expenditure, manage your savings, put down the due-dates of various payments and plan out avenues to earn more money. It will help keep you in control of your financial destiny. Those who have used it, believe that it is a very important tool to gain control of one’s finances and build wealth
2. Invest money in the right avenues – Depending on your investment appetite you can invest your money in the instrument of your choice, which can be direct equity, mutual funds, 401K etc. Just make sure that when you are investing in mutual funds or stock of a company, you find out how the company has been faring even in loss-making years to get an idea of how financially viable it is.
3. Freedom from debt – It is important to get freedom from debt if you want to be in control of your finances. Your budget plan is streamlined better if there are no hurdles of debt and increased interest rates. This can be done by shifting outstanding balances to a new card with low interest or zero percent interest. Make sure that you pay back the balance transfer payment within the introductory period.
4. Check your credit report – Download the three-in-one credit report and find out if there is any discrepancy in any information provided in the report. You can dispute it and have it cleared because a negative marking on the report can affect your credit rating, making some loans unattainable to you or attached with high interest rates.
5. Build your savings – You should build your savings by transferring a part of your salary into your savings kitty. In fact, experts say that you should have contingency funding which comprises 6 months’ salary as minimum so that you can be able to handle any emergency situation without resorting to loans.
6. Supplement your income- Look for inflow of money, focus on how you can earn more money. If you can afford part-time job or a business that can supplement your income, it is definitely a good thing to do. Thanks to the Internet, there are a lot of avenues to earn money online. You can make the most of the opportunity and earn a lot of money. The key thing is to research and emulate the success principles of people who have achieved success. You may also be able to chart your own course in the process.