As always, our focus is the creation of wealth through real estate, but this time around, we will also be discussing the different methods to sustain our financial freedom and wealth building capacity.
Back in the day, as an amateur investor, I realized there were many ways to generate wealth and as a matter of fact they were quite easy to learn and implement. However, there was another issue I learned only after I joined the game. Maintaining this wealth is a challenge. If not managed effectively, it will slip out of your hands before you can even realize it.
So, here are some of the strategies I used to build my wealth and keep it. Hopefully, it will help you do the same by creating an investment that appreciates in values and lasts a lifetime.
Educate yourself according to what’s happening NOW!
It’s very important that you know what’s changing in the market, this will help you not only on making the most profitable investments but it will also help with other aspects of your business such as trends, current home values, reviewing different locations, etc.
Pay bills in full and on time
This includes your credit card bill. It is advisable to always pay them in full and before the due date. When you default on a payment, it kind of sets off a chain reaction and you tend to default on most of the other pending payments. It is also very important to keep off your retirement plan to pay for such bills. It will attract taxes and interests leading to loss of money in the process.
If possible, pay up front and in full:
When buying a product or hiring a service, try limiting the use of your credit and instead pay in cash. This way, you can reduce the amounts you pay by way of interest; there are other ways to avoid using your own credit and bypassing the bank.
Maintain your reputation
Many try to evade taxes, but it will definitely not prove the best option for you in the long run. Paying taxes on time will keep you from getting into the bad books of the bureaucracy for a lengthy and expensive audit. It will also keep off heavy penalties and compound interests. If there is something you don’t want in this business is a bad reputation.
Look for real estate deals
Property owners are in selling situations for different reasons. It is therefore very easy to find willing sellers that could be flexible with the deals for the property. You can create wealth by buying such properties and the fixing them up to increase their value. You can also resell the property for a profit.
It should be a priority in wealth building. It should never be related to the income level because it is possible to make savings even with low paying jobs. You can then invest the money wisely to create wealth. It is a simple tip that can get you to where you want to be.