How to Save Money and Build Wealth When You are in Debt

Jan 23, 2023 · 2 mins read
How to Save Money and Build Wealth When You are in Debt
Share this

Building your net worth is a life’s journey. It’s not something that can happen overnight. The first step is really to think outside of the financial world. Think about your personal life. What do you want to accomplish? Come up with some goals. You have to give your money meaning. Right, without meaning, your money just seems purposeless. You want to identify where you want to be this time next year and this time in the next five years. Then start to plan.

The Schwab Modern Wealth Survey found that 60% of Americans with a written financial plan say that they feel financially stable. That is far more than those of us who don’t have a financial plan. And if you have a plan, you’re also more likely to save for a rainy day, pay those bills, and avoid debt.

As a young adult, you may feel like you have absolutely no money to save. That could frankly be true. There’s a capacity to how much you can do with your money, especially if you have student loans and expenses. But trust me, getting into the habit of saving can be really simple as long as you just commit to a little bit at a time. The key is to make it automatic. Therefore, make it a habit to effortlessly pass a portion of each salary into a separate account. Maybe that’s an online account or another savings account within your bank. One of the crucial steps in effective budgeting is to set aside your funds before you even have the chance to spend them. This can be accomplished by directing a portion of your earnings into savings or investments and allowing the money to grow over time, almost like a “set it and forget it” mentality and over the course of six months, a year, even just a little bit of saving at a time - five dollars a week, five dollars a day - whatever you can do will accumulate and motivate you to do more.

You have to believe that no one cares more about your money than you. So, what does that mean? In the world of finance, it’s important to remember that you are your own best advocate. Your loved ones, friends, and employer all care about you, but when it comes to making decisions to secure your financial future, it’s ultimately up to you. No one will hold your hand or guide you through every step, so it’s crucial to take charge and be proactive in protecting your financial security. Whether your goal is to increase your net worth, get out of debt, or save more money, it’s important to understand that you are the key player in your financial journey. Empower yourself to make smart financial decisions and take control of your future. No one’s going to hold your hand or walk you through it, or even insist that you do it. It has to be something that has to come from within, and you have to be on top of that.

Join our mailing list
Receive business letters, articles, tips, and tools about entrepreneurship