The first step to building wealth is to understand that it begins with the savings habit. To help with that, you can read 5 Ways to Make Saving and Investing Easier. There's also another great piece called How to Start Investing, which should be read before you begin working on building real wealth. You may also want to read How Do I Actually Make Money in Stocks? to understand the process of investing in businesses.
The First Steps to Building Wealth from Your Investments
- How to Become Wealthy: Discover nine truths that can help you lay the foundation for financial independence and stress-free wealth.
- 7 Rules of Building Wealth: There are seven things you can put into practice to begin seeing your balance sheet strengthen. Learn what they are and why they are important in this great article
- 7 Ways to Destroy Your Wealth and Guarantee You End Up Poor: Billionaire Charlie Munger has said that studying counter-evidence is sometimes more useful than studying good examples. In that spirit, I wrote this guide to the top things you can do to destroy your wealth. By avoiding them, you will find it easier than you ever imagined to grow your wealth.
- 3 Steps to Building a Great Fortune: If you are interested in substantial wealth - the kind that means you can pay cash for anything you want and invest in big projects like hotels and restaurants - there are three things that might be important to you. These three keys have held true for most of the members of the Forbes 400 list and they just might be helpful in your own quest for riches.
Creating Diversified, Stress-Free Sources of IncomeOne of the most important ways to build wealth is to have a lot of income flowing into your household every year. As an investor, you want these income sources to be diversified and low-risk so that you don't have to worry about losing your job or finding yourself between a rock and a hard place when the economy hits a rough patch.
To help explain how you can put together you own collection of these income sources, we've provided the following articles:
- Introduction to Passive Income - How to Put Together a Collection of Income Sources: Discover the two types of passive income, why passive income is taxed less than active income, and why putting together your own passive income sources is the single most important thing you can do to begin building your wealth.
- 8 Ways to Become Financially Independent: Most new investors don't realize that different types of income are taxed differently, grades in school have zero correlation with million-plus wealth, and niche markets can be a great opportunity to build wealth. These keys are uncovered in a few short pages so grab a cup of coffee and get reading.
- How to Utilize the Berkshire Hathaway Model in Your Own Life: Over the course of 40 years, billionaire investor Warren Buffett took a tiny textile mill from $8 per share to more than $150,000 per share. This was done by putting together a business model of dozens of diversified cash generators that pumped money back to headquarters for him to buy other assets. That same model is a great way to build your own wealth. In this special, we explain how it can be done and the reasons it reduces risk.