While motivational speakers such as Robert Kiyosaki will make building wealth seem easy, the truth is it is a lifelong struggle. It’s not likely to read from motivational books that the wealth you accumulate is equivalent to how you think or believe. While building wealth largely depends on your mindset, managing money well plays a big role in building it.
Why you should start building wealth at a young age
When you start investing and managing wealth at a younger age, you’ll increase your chances of retiring in your early 50s. What’s more, unlike someone who just started building wealth in their 40s, you’ll stand a good chance to learn different ways of managing money well. And by the time you bring a financial advisor in the picture, you’ll be far more knowledgeable than your peers.
Other reasons why you should build wealth at a young age:
1. You will manage financial risks better
Building wealth at a young age prepares you to deal with financial risks later in your life. By the time you are in your mid-40s, you’ll understand the importance of assessing risks before investing in any business venture, and how to avoid those risks.
2. You will learn valuable lessons
Building wealth at a young age allows you to learn valuable lessons about wealth management early. And if you make any financial mistakes, those mistakes won’t be as costly as making them when you are a married adult. Plus, if you fail, you’ll still have the time to start all over again.
3. You’ll learn how to get out of debt
Debt has a way of shackling people and reducing their chances of amassing wealth. The more debt you service, the less money you have to save and to invest at the end of each month. So when you are young it’s easy for you to get out of debt and start building your wealth immediately.
4. You’ll be able to invest for your retirement
If you are a full-time worker you should invest about 15% of your monthly salary for retirement, at a young age. Investing for retirement at an early age gives you an advantage over someone who doesn’t.
5. You’ll be able to pay off your first home
Building wealth at a young age allows you to own assets such as houses early in life. Once your first property is paid off, you can use that as collateral for accumulating more wealth. The money that you were using to pay the mortgage can go toward buying shares or even your second property. Something that most people only dream about.
Remember, you won’t be young forever, so make a decision to build wealth and stick to it now. If you are not sure how; consult a financial advisor to help you structure your wealth. Companies such as Summitry provide financial advice to individuals to manage their wealth better, regardless of their age. They will show you how to retire comfortably and help you plan for the future. Once you get rich, you’ll have options to live anywhere you like. You are not too young to be filthy rich!
