Save and Grow Rich: 4 Secrets of Building Wealth

The rich are different — some might event say stingy — which is not always a bad thing. Rich African Americans understand the psychology of wealth building and delayed gratification. They routinely practice four economic principles, which are not particularly complicated, but strict adherence to these finance fundamentals can lead to the good life.

Budget and Save: Living within your means is not a sacrifice, it is an accomplishment. At the end of the month, you’ll have some cash and peace of mind. If you think of the Joneses as barometers of good living, you’ll make short-sighted decisions and foolishly extend yourself financially. In the long run, you’ll also damage your credit, decrease your cash flow and diminish your resources.

Invest: You don’t have to be born with a silver spoon in your mouth to get the gold. Don’t spend money on depreciating assets that lose their value so rapidly that eventually you’re putting your hard-earned cash into a sinking ship — or car. Investigate the stock market and consider purchasing real estate — the financial forecast is looking up.

Frugality: Thriftiness is a valuable virtue. If you pay an individual to mow your yard at a cost of $40–$60 per month, doing it yourself can put as much as $720 per year back in your pocket depending on the region of the country you live in. Volunteering to usher at the symphony doesn’t make the music less harmonious or the sound any less sweet. Rich people know that paying a lot for an item doesn’t make it more valuable or determine one’s station in life.

Increase Income: In some circles it’s called multiple income streams and in some circles it’s called hustling. Either way it means creating or increasing wealth through entrepreneurial initiative and seizing opportunities. Successful, proactive people find ways to earn extra money and are always searching for a new source of revenue. Once you begin working towards income diversification, you will suddenly find that opportunities come to you at a much faster rate, giving you new ways to create more wealth.

Don’t allow ego or ignorance to hinder you from achieving your financial goal. Put these wealth building concepts to use on a daily basis and they will not only become part of your lifestyle, they will actually enhance your lifestyle. In this case, practice makes perfect cents. –roz edward, terry shropshire and michele fling