Looking for ways to build wealth this year? Try these simple strategies for building wealth in 2022.
Prioritize Paying Off High-Interest Debt
When you carry about high-interest debt, from a credit card or a personal loan, the more you will end up paying in interest over the life of the loan. This is especially true for forms of revolving credit such as credit cards where you will make monthly payments indefinitely until the balance is repaid. While this may not seem like much, over many years you will have spent thousands and thousands of dollars just on repaying interest.
Avoid Lifestyle Inflation At All Costs
Lifestyle Inflation refers to the situation where a person’s spending increases as their income increases making it nearly impossible to become financially independent but rather creating a cycle of living paycheck to paycheck. As you can imagine, it’s difficult for a person to grow their wealth if they are unable to spare enough of their income to save and invest without jeopardizing their living situation.
We often see this with celebrities and athletes who make it big, buy the biggest house, the fastest cars, designer everything, and live like royalty for a few years. But, once that money is gone, they are left with very little in the way of savings and investments to fall back on.
Audit Your Reoccuring Monthly Expenses
These days, just about everyone pays for a monthly subscription service whether it is a streaming service like Netflix, Apple Music, Hulu, or for a utility like a phone bill and internet. Many times, people forget they even pay for service despite not using it because those small automatic payments can easily go unnoticed.
Think this is too insignificant to make a difference? Ask AOL how much revenue they bring in with the subscriptions that users forgot to cancel.
Sit down once a month review your monthly account activity and cancel any services that you do not use enough to justify the expense. You may be surprised at what a difference this can make.
For recurring utility services such as phone, cable, and internet you should try to negotiate a better rate. Some companies will offer you better pricing in an attempt to retain you as a client. Alternatively, their competitors may be offering deals if you sign up with them instead.
This extra cash in your pocket can help you cut back on wasted expenses and get the ball rolling for your savings account or investment portfolio.
Hire a Team of Professional Wealth Strategists
When it comes to making sound investments, hiring a knowledgable and proven wealth strategy professional to help you make the most informed decision on your finances is as sound of an investment as there is. Pro Vision Wealth works with you to make the best financial decisions based on your financial goals whether that means taking full advantage of your deductions come tax season or helping you find the best long-term investments.