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WEALTH BUILDING

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Start with a good foundation:

Set up emergency fund, then

pay down debt, then invest.
You can never start too early.
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Have questions? Want more info?	Contact a Team Member.

Successful wealth building starts with some simple principles. First you need to save some money so that you can take care of your families needs, then start putting your money to work for you. Taking care of your family's needs involves two basic steps: get at least some minimal life insurance to start (more info here: INSURANCE) and set up an emergency fund. This emergency fund can provide your family with money to cover food, housing, etc. if you were to lose your job or have something unexpected happen. The minimum amount recommended is 3 months salary, but 6 months salary is best if you can save that much. Many people choose to use their tax refund check to build their emergency fund. If you need time to gather the money, start saving even a small amount each week (maybe $25 or $50) so that you eventually reach your goal.

Next you should use whatever "extra" money you can spare to pay down your credit card debt. Keep saving $25 or $50 after your emergency fund is done, and find ways to avoid wasting money (maybe eat out less often or make your coffee at home). Credit cards are high interest loans that will take forever to repay if you only make minimum payments. Once you've paid off credit cards or paid down other high interest debt, then you can start investing some of that "extra" money, which is where real wealth building begins. And of course the earlier you start, the more successful you will be at having more money in your future.

Early vs. Late Comparison

We've talked about some of the best ways to build wealth in other places on this website. One asset we recommend to start with is putting some money in an IUL. The Indexed Universal Life (IUL) insurance policy is a safer, steady way to grow your money. The money grows faster than some other investments because your value goes up when the market index increases, but does not drop when the market goes down. Furthermore, the money grows tax free, and you can take money out later when you need to use it.
(You can read more about it here: INVESTMENT, and see examples of your money growing here: RETIREMENT.)
IUL is a great way to start building wealth for you and your family because tax free growth earns more money for you, since taxes can erode your investment money. (If you want help doing your taxes, contact Dane Galden.)

After you have this solid foundation, then you can put your money into other investments looking for faster growth. Although they are more risky, stocks can give you a chance at tremendous growth potential. They can also go down in value...even to nothing... and you are not in control, so be careful. You must diversity to minimize your risk. Another investment with growth potential that you can have at least some control over is real estate. Buying real estate is exciting and can provide tremendous upside, but you need to be active and know what you're doing to be successful. (You can get more info here: REAL ESTATE.) Contact us with more information about you and your family so we can discuss more wealth building strategies, customized for your unique situation:
Contact a Team Member.

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