As someone who strives for financial stability and success, it can be overwhelming to sift through the endless advice out there on how to build wealth. To help simplify things, GOBankingRates reached out to some of the most trusted financial experts in America and asked them to share the one thing everyone should do to build wealth. Here’s what they had to say:
1. Dave Ramsey, Author of ‘The Total Money Makeover’ and Host of ‘The Ramsey Show’
“Play longball and invest consistently. Mutual funds are the way to go. They cast a wide net across many companies, helping you avoid the risks that come with trendy stuff, like crypto. Just remember, Match beats Roth beats Traditional on figuring out where to invest for retirement first.”
Ramsey has built an empire around helping individuals achieve financial success, and his advice rings true here. Investing for the long term and doing so consistently can help you build wealth over time, particularly if you go for mutual funds that allow for greater diversification.
2. Mark Cuban, Entrepreneur and Shark on ‘Shark Tank’
“Have appreciable assets. Whether it’s a home, mutual fund — something that can appreciate in value over the long term.”
Cuban’s advice is to focus on investing in assets that will appreciate over time, rather than chasing short-term gains. By acquiring appreciable assets, you can build wealth over the long haul.
3. Chris Farrell, Author of ‘Your Money’ Column
“The bedrock insights of personal finance include: save often, keep fees low, prepare for the unexpected, invest in learning, and create a margin of financial safety.”
Farrell’s advice is to focus on the fundamentals of personal finance, such as putting away money regularly, minimizing fees, having an emergency fund, investing in yourself, and creating a margin of safety in your finances. While these may seem obvious, they are key to building lasting wealth.
4. Chris Hill, Host of ‘Motley Fool Money’
“Find a way to put money towards your investments every month. If you have a 401(k) plan, max it out. If you don’t, set a schedule of putting even just a few dollars into an investment account every month. Your future self will be so grateful.”
Hill reiterates the importance of consistency when it comes to investing. Whether you have access to an employer-sponsored retirement plan or not, committing to putting money into your investments every month can help your wealth grow over time.
5. Jully-Alma Taveras, Creator of The Investing Latina
“Everyone should be thinking and implementing the small financial actions that will be required to build wealth over the long term. For example, consistency helps develop a habit, letting go of the fear, which helps in managing moments when the market goes down, and optimism to pursue big dreams like retiring early.”
Taveras emphasizes the need to think long-term when it comes to building wealth. Consistently taking small steps towards your goals, letting go of fear, and remaining optimistic can help you stay on track even during market downturns.
6. Danetha Doe, Creator of Money & Mimosas
“I believe everyone should be investing in themselves to build their wealth. You are your #1 investment. Whether it’s signing up for a personal finance workshop or a gym membership, investing in you will always pay the best dividends.”
Doe reminds us that investing in ourselves is key to building wealth. Whether it’s through learning new skills or focusing on our health, investing in ourselves can pay off in the long run.
Related Facts:
– Good financial habits, such as living below your means and avoiding high-interest debt, are key to building wealth.
– Planning for the unexpected, such as by having an emergency fund or adequate insurance coverage, can help protect your wealth.
– Putting money into tax-advantaged retirement accounts, such as 401(k)s or IRAs, can help your wealth grow tax-free over time.
– Investing in low-cost index funds can help you diversify your portfolio and minimize risk.
Key Takeaway:
When it comes to building wealth, it’s important to focus on the fundamental principles of personal finance, such as saving regularly, investing for the long term, minimizing fees, and preparing for the unexpected. By staying focused on these key areas, you can build wealth over time and achieve financial success.
Conclusion:
Building wealth isn’t always easy, but by following the advice of trusted financial experts, you can simplify the process and put yourself on the path to financial security. Focus on the fundamentals, invest in yourself, and stay committed to your financial goals, and you can achieve lasting success.
