Nine Financial Practices for Growing Your Wealth

Wouldn’t it be great if you were able to be kinder with yourself when thinking about wealth? There is no need to rehash those past experiences that may not have worked out and held you back from achieving your financial goals. Lessons learned are never a loss because they always stay with you. It’s when we do not learn from them that it becomes an issue. Luckily, once you’ve been down a rough road or two, it’s easier to identify your trouble spots and do something about them. Do you have a system in place to move you closer to your goals? If so, I commend you for your ability to bounce back and turn things around. If you’ve yet to create a system for yourself, you can start today by developing a plan which includes consistent practices that you can implement with ease and easily followed.

Your plan doesn’t have to be multifaceted or disruptive to your everyday life. For best results keep it simple. With some thought and preparation, you can create a plan which includes a system for achieving more wealth and financial security. You don’t need all the answers right now to get started. If it is your desire to finally live the lifestyle you’ve dreamed about, then all you need is an action plan that will grow your current income into sustainable wealth. The type of wealth that turns dreams into reality. The type of wealth that continues to build even if you find yourself out of a job or become physically unable to work.

Whether you’re under 20, in your 30s, or over 50, it’s possible to make life and money changes for the better no matter your current situation. By developing consistent financial practices, and with some small adjustments, you can make a big difference for your future, so you are not stressed or worried about your finances.

How can you start to make this happen?

The first step is to decide now, not tomorrow, not next week, or next year that you’re ready to finally make your financial security is a priority.  The next step is changing your mindset from seeing yourself only working for your money and shifting it to understand how important it is that your money works for you.

How?

This will come to pass by investing in the stock market.

Isn’t the stock market risky?

Yes, there is a risk when investing in the stock market. Although stocks are riskier than keeping money in a savings account or by accumulating a Certificate of Deposit (CD’s) with a fixed yield, they have historically had higher returns that beat inflation, thereby helping you grow your wealth. A solid financial plan that includes the stock market opens more doors of financial opportunity because you are creating an additional source of income that compounds over time. Once you start investing, your money will finally be working for you.

It’s not necessary to dive into the stock market with all your assets. You can start small and go slow. I recommend you start slow because as you begin investing, your knowledge expands. Create your financial plan with short and long-term goal-oriented action steps that are simple and will not cause you to be stressed over your decisions. Time and experience will help you feel more comfortable investing.

Take a minute and close your eyes and visualize seeing your wealth expand. As your skills improve, your comfort level and confidence will become stronger, allowing you the ability to make the necessary adjustments to ensure your success. Start now by using a few of the tips listed below and see how they will support you to grow your wealth.

9 Financial Practices for Growing Your Wealth

1. Start saving and investing as early as you can.  Small sums of money add up over time. Create a plan you will follow.
2. Diversify your investments into a broad mix of stocks and bonds. Don’t put all of your money in stocks.  Use Exchange Traded Funds (ETFs) or mutual funds where they pool together a basket of stocks or bonds to diversify your portfolio and manage your risk.  Using ETFs and mutual funds are safer than putting all your money into one or two stocks or bonds.
3. Don’t have more money invested than what you are comfortable with investing.  It’s ok to reduce your invested position in small increments. If you are worried or find yourself not sleeping at night, then you are too invested. Manage your risk by avoiding taking large losses on your investments. Remember, small losses are the best losses you can have.
4. As you grow older, it’s a good idea to move your assets into less-risky investments. A quick rule of thumb is to have an allocation to bonds that is equal to your age. When the market climate is positive, you could increase your allocation to have a little more equity. You also develop an exit strategy that will go into effect at a predetermined time (such as when the trend changes). Doing so will give you the leeway and flexibility to get out.
5. Know your time horizon when investing, whether it’s for less than one year, five, ten, years, or more because the stock market can go up and down very quickly.
6. Keep your investment costs low. High trading costs eat into your gains over time.
7. Don’t be afraid to talk about our finances. Don’t hide from the conversation. If you are feeling a bit unsure, look for some help from a coach, investment adviser, or a financial planner who could help you create changes to support you on your journey to wealth.
8. Take advantage to contribute to a retirement savings plan if offered by your employer. Start with 2-4% of your income and then increase the contribution to 10%.
9. Limit yourself to withdrawing 4 percent or less a year if you need to withdraw money to live on if you are not working.  In this way, you will preserve your capital for later years in life, and place yourself in a position where you are less likely to run out of money.

Investing in the stock market is a great way to grow your wealth over time. As you begin this journey of taking responsibility for your money and financial security, you will be setting yourself up for success because your money is working for you. It’s a process, and I’ve learned first hand that by focusing on developing financial rituals and incorporating them within your life, you can break the go nowhere cycle and create more wealth. If you want your plan to work, it needs to ease into your life with the least amount of disruption as possible. By starting small and going slow, those changes taken over time (not all at once) will lay a strong foundation toward funding the life you’ve always dreamed about. There are no tricks, gimmicks, or shortcuts, the idea is to simply start.  Whether you are a beginner or are an advanced investor, growing your wealth through investing can be rewarding. When you cultivate good habits with consistency, the more success you will have. Set yourself up for success today by creating an investment plan that has your money working for you, and you will achieve a level of financial security that will enable you to live the lifestyle you want and deserve.

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Bonnie S. Gortler

Bonnie Gortler, Consultant, Coach, and Author specializing in Wealth and Well-Being, is a successful stock market expert who has been instrumental in managing multi-million-dollar client portfolios within a top-rated investment firm during her over 35-year corporate career. As the author of “Journey to Wealth,” Bonnie has made it her mission to share the importance of risk management and how to enjoy real financial well-being by applying the technical and mental sides of investing. Bonnie has an M.B.A. and is a certified life coach. It is through her love of coaching, consulting, blogging, and social media that she creates change in the lives of many and inspires people from around the world. Bonnie is fully committed to your personal growth and development as she shares her winning spirit and powerful techniques with you. Visit BonnieGortler.com to gain tips and insights about investing, personal development, and inspiration through her articles on Wealth and Well-Being.
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