There’s No Get Rich Quick Scheme to Build Wealth

Most people have a near-constant desire to keep up with our neighbors or what we see on television, to live a slightly more glamorous life. We might think our house isn’t big enough or our car isn’t fast enough. So we seek to attain a lifestyle that doesn’t fit our income or our budget.

With the right planning, you can achieve those goals and dreams. But there is no get rich quick scheme. There is no Nigerian prince who will give you two million dollars if only you give him your bank account information. There is no 2 a.m. infomercial that will make you a millionaire overnight.

But you can become a millionaire. You can win with money and become ridiculously wealthy. Even if you are solidly middle class and never make six figures.

The path to prosperity is paved by the choices you make today when you are planning for tomorrow. Here are proven strategies that will make you wealthy, beginning when you are 18 years old.

  1. Choose a College Major or Trade that Makes Sense

When you are just 18, you have your life ahead of you. There is nothing worse than spending four or five years in college, receiving a diploma and not knowing what you are going to do. Whether you are going to a four-year college or have a career lined up, choose wisely. And this is more than just choosing the career that will make you the most money tomorrow.

Look for a career field that is growing. Look for a career that is booming in an area you want to live. Find something you are passionate about and something that will provide value for a company. If you do that, you’ll be on the right track.

  1. Live Within Your Means

We are all familiar with the phrase “Keeping up with the Joneses” for a reason. We have an addiction to material possessions that we don’t really need just to impress our friends – and people who aren’t even our friends.

Have a budget. Live in a house that is right for you. Drive a car that will meet your needs. If you spend your life making a $500 car payment each month rather than putting that money into retirement, you will live to regret it. Is it really worth it?

  1. Begin Investing Today

The sooner you begin investing, the better it will be thanks to the magic of compound interest. Here are some numbers to keep in mind: If you invest $5,000 a year beginning at age 22, you can a little more than $2 million in savings if you work until you are 67 years old. And of that, you will have contributed just $200,000.

Oh, and if you wait until you are 30 because you think retirement is so far down the road, you will have about half that, a little over $1 million. Nice, but could be much better by planning earlier.

  1. Don’t Try to Get Rich Going into Debt

Investing in property is a great path to wealth. But it is something you should pay cash for. We often have this belief that you get rich by going into debt, and then going further into debt.

Perhaps you can, but you can also lose it all. The way most men and women become millionaires is by following the path we have outlined: Live within your means, work hard, invest and don’t go into debt.

  1. Think About the Future

People have criticized the book “The Millionaire Next Door” because they don’t think it is applicable today. That isn’t the case. It is more relevant than ever.

It just requires a major commitment and some sacrifice to see what the future can hold. Think about your life. Think about your family. Think about the generational change that can occur. No, it won’t happen overnight, but it will happen because of the choices you made.

Flipping a Home

Many people have looked to flipping homes to bring in extra income or even as a main source of income. Basically flipping involves the investment of buying a house for a low cost, fixing it up and selling it for a higher cost to make a profit. With the right tools, this method of investing can be quite easy. Basically… you buy the cheapest house in the best neighborhood, fix it up, sell your house quickly and make money.

The first step of flipping is to locate the perfect property. It is best to form a relationship with a good real estate agent that will keep an eye out for you. It is worthwhile to have a good real estate agent because they will already know the best areas and neighborhoods to invest. This will take away some of the research work from you. It is a good idea to invest in areas you are familiar with as well so you are not going in blindly.

Once you find the right house, you will need to figure out how all of the remodeling work will be completed. You will either need to acquire the perfect contractor, or better yet do it yourself. If you are using a general contractor you will need to be sure they are trustworthy, reliable, good communicators, reasonably priced and talented. If you are handy and can do it yourself than your profits will be greater since you don’t have to use money to pay someone to do the work.

When doing the renovation, you have to be smart in choosing what areas of the house will yield the greatest return on your investment. You also need to make the turnaround as quick as possible. Time is money. So, in order to sell your house quickly, it is crucial to make improvements to a few central parts of the property. Some may choose to do kitchens, bathrooms or outside of the home to promote a profit. Another area of the house that is beneficial to making money is central air. By using a company like ActronAir you can add comfort into a home which can add value as well.

Once the home is sold, all of the hard work will be worth it. Don’t hesitate, make a quick move now and be on the road to your first investment property. Start with finding a realtor and looking on your own. Figure out the financials and see what will work for you. Also learn about the area to make your knowledge valuable.

Insuring Your Assets: Small Businesses Need Insurance That Suits Their Situation

Many people spend months or years planning their new businesses, and then invest almost literally everything they have into getting them off the ground. Therefore, it makes sense to protect your new business in every way possible.

There are a number of different choices out there, in terms of providers and coverage amount. A good insurance broker, like Next Insurance, can help you sort through these different options and make the right choice.

Errors and Omissions

Professional liability insurance guards against negligence and failure-to-perform claims. If your business is in the service industry, you definitely need significant E&O coverage. To determine your need, take an honest look at your risk and the amount of money you can afford to lose on a claim. E&O insurance is also a must for many investors. They want to know their investment is protected. If you need to raise capital in this way, you’ll need this type of insurance.

Property Insurance

Somewhat similarly, many landlords will not rent to businesses without property insurance. These policies cover fire, theft, and other kinds of unintentional losses. Keep in mind, however, that these policies are usually limited. Many do not cover things like floods and hurricanes, especially in areas prone to these events.

Business Interruption Insurance

Property insurance covers physical losses due to natural and unnatural disasters. However, these policies do not cover the resulting business interruption. For that, you need business interruption insurance. BII policies are essential. Many times, the interruption as a result of a disaster is much worse than the physical damage.

Workers’ Compensation

Most states require insurance against workplace accidents. Most states also have very intricate rules regarding the number of employees, coverage amounts, and other such matters. As in other areas, just one claim can be devastating. For example, slip-and-fall injuries cost about $70 billion every year.

Home-Based Business

Typically, this insurance is a rider as opposed to a separate policy. Many homeowners’ policies do not cover commercial losses. For example, if you run a small catering business out of your kitchen and a fire occurs,the homeowners’ policy may not cover the loss.

Business Vehicle Insurance

The same thing applies to auto insurance. Most policies do not cover commercial losses. Anyone who uses a vehicle for any commercial purpose needs business vehicle insurance. That could be a food delivery service, an Uber driver, or someone who travels to offsite meetings.

Cyber Liability Insurance

Hackers and cyber-criminals become more sophisticated every day. The potential losses get bigger every day as well. There are both direct costs, such as fines and lawsuit settlement costs, and indirect costs, such as loss of customer goodwill. Cyber liability insurance covers most of these losses and also provides peace of mind.

You have worked too hard and too long to see your dreams go up in smoke. But that’s probably what will happen if you must deal with an uninsured liability claim. So, make the right choice and reach out to an insurance provider today.

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