2Stage Two of the Journey
Build
Most people start their financial journey by earning and receiving income. This income may come primarily from one source—for example, a job or multiple jobs—or from a variety of sources, including investing and entrepreneurship, such as operating a side business or starting your own company.
Steps to building wealth
- Make accumulating assets your top priority
- Use every tool available to build your earnings, including retirement plans
- Be a smart spender and avoid unnecessary expenses
- Put off some expenses until you can comfortably afford them
- Adopt a long-term mindset about building wealth
Starting on your journey
2 minute readWhatever the source, there are things you can do to make your income grow faster and keep more of it for yourself. The more money you can make and hold onto, and the more it grows in value, the more power you have to build financial stability and long-term wealth.
Another way to grow your assets is by spending carefully. That means spending only what your budget allows, and no more than you need to, in part by choosing the best options on purchases, credit cards, and loans that will cost you the least amount of money.
The inspiration of meeting specific goals or dreams can make building your financial resources your main focus. Of course, goals may change, and your methods of both accumulating, and protecting the money you have, may change as well, especially as you get older and you find yourself in different circumstances.
But the money is not an end in itself. It's just the tool you need to get where you want to be, what you want to experience, and how you help yourself and the people you care about.
“The money is not an end in itself. It's just the tool you need to get where you want to be.”
Chapters in this stage
Five chapters that move from earning your first dollar to growing it into wealth that lasts.
Investing
Put your money to work so it can outpace inflation and grow into lasting wealth.
College Finances
Save and invest for education with 529 plans, Coverdell ESAs, and savings bonds.