Written by Barbara Huson
“What are the secrets to being wealthy?” she asked, a tinge of desperation in her voice. “I feel like rich people know these secrets that I never learned.”
She was right. There are Secrets to creating wealth. And I understood her frustration. I struggled with this same question for years, never getting a satisfactory answer.
The truth is, very few people actually understand how to become a Wealth Builder. Everyone, however, knows how to be a Consumer.
As a Consumer, when money comes in, you go out and spend it. Granted, you may be an excellent Dollar Watcher and Bargain Hunter. But that’s not how you build wealth.
As a Wealth Builder, you take a very different tack, making sure your money works as hard for you as you do for it. You understand—and adhere to—the Secrets to Wealth Building. They are surprisingly simple and…well…obvious:
- Spend less than you earn—never spend money you don’t have. If you can’t pay off your credit cards in full, stop using them.
- Save more than you need—pay yourself first by automatically transferring a small amount every month into a separate savings account.
- Invest wisely—put at least a portion of your money into assets that grow faster than inflation, like stocks, bonds and real estate.
That’s it. Only 3 Secrets to becoming wealth. When I shared them with this woman, she was, at first, pleasantly surprised, then immediately slipped into mild panic.
“Investing terrifies me,” she moaned. “It feels overwhelming,”
“I know it seems scary now,” I assured her, “but it doesn’t need to be if you give yourself the time (at least 3 months) to learn. As A Course in Miracles promises: “Nothing you understand is fearful.”
How do you learn about investing? Start here:
- Subscribe. Here are 2 newsletters I really like: Ellevest Magazine and hermoney.com
- Talk. Of course, I heartily recommend my online community, The Wealth Connection, where that’s what we do…talk about money, as women.
- Read. Here’s an article on Motley Fool’s website: https://www.fool.com/investing/2021/02/06/how-to-invest-like-a-pro-when-youre-new-to-the-gam/ I also recommend: Investing Success, by Lynnette Khalfani-Cox and Money: Master the Game by Tony Robbins
- Listen: I created a short, comprehensive webinar on investing basics, Wealth Building 101: Investing Made Simple…Very, Very Simple
I’d love to know what other financial resources you recommend. Tell me about them in the comments below.
