Millions of people begin each year with a new year’s resolution but by February most people have already given up on their resolution.
But what if I told you your next resolution can make you rich if you stick with it? Would you follow through then?
Well, BLACK ENTERPRISE is helping you get a jump start on building wealth in the new year with some tips to get you started. However, before we start, you’ll have to come to grips with the fact that building wealth is not a fast or easy process.
Make a plan and budget
Building wealth takes planning and patience, identifying your goals and developing a plan to achieve them is the first step to any financial plan.
Sitting down and going through your finances can help you find out how much money is coming in, how much is going out, and if you need to make any adjustments to those. If you can afford it, hire a financial advisor or Certified Financial Planner (CFP) to help you begin your wealth-building plan.
If you can’t afford a full-time financial advisor, there are plenty of apps offering financial advice and access to professional financial advisors. Two apps, Betterment and Ellevest, provide managed investment portfolios and access to financial advisors that can help you on your financial journey. Additionally, both Betterment and Ellevest have detailed reviews by Forbes.
Automate your finances
You deal with a lot in life, including family, friends, children, and work. Constantly managing your finances in addition to every other aspect of life can be difficult. Let technology help by automating your saving, investing, and bill paying.
Having your expenses automatically deducted from your paycheck and applied to each expense can help you track your budget easier, improve your credit score, and manage your money without constantly worrying about it.
Manage and eliminate your debts
According to Bankrate, the average American carries more than $90,000, so don’t feel bad or like you’re the only one. Some debts, such as a mortgage, are considered good debt thanks to their wealth-building potential.
However, other debts such as credit cards carry high-interest rates so paying them off as fast as possible is important. The good thing is you can fight this kind of debt off in more than one way.
There’s a debt snowfall, in which you start by paying off the smallest debt and then taking the money you were using to pay that off to help pay off the next smallest debt. There’s also a debt avalanche, where you pay off the debt with the highest interest rate first and after you use that to pay off the next highest debt.
If it takes you months or even a year to pay off a debt, remember, this is not a fast process, so take a deep breath and remind yourself that slow and steady wins the race.
Take advantage of technology
If you have a goal of building wealth in 2023, you have an invaluable resource walking around with you in your pocket every day, your smartphone.
There is a bevy of financial tools and resources available on the internet today. If you’re struggling with getting your finances in line, check out the Netflix show Get Smart With Money, in which four financial experts help everyday people. The show is a wealth of financial advice and tips from advisors, including Shareef “Ross Mac” McDonald
There are numerous finance figures on the internet that can help you with entrepreneurship and starting a business, investing in the stock market and businesses and wealth building. Another valuable resource is BLACK ENTERPRISE’s Your Money, Your Life podcast, in which BLACK ENTERPRISE‘s Senior Vice President Alfred Edmond Jr. talks with entrepreneurs, financial executives, and experts.
Stick to your goals
Inflation continues to raise prices, unemployment is beginning to rise again and the stock market is still worried about a looming recession. That being said, this is no time to lose sight of your goals.
Instead, keep reminding yourself to stay on the path. Don’t throw away those statements showing you paid off a debt, keep them as a trophy for your diligence. Now that you’ve automated your accounts, use your banking apps to view how much progress you’re making toward your financial goals.
Even keeping a journal showing your progress from the beginning can help keep you on the path to financial freedom and the positive reinforcement from accomplishing small goals will keep you motivated for that big hill you have to get over. If you happen to slip up, don’t beat yourself up. The goal here is progress, not perfection.