The path to wealth building is much more complex than “picking up millionaire habits” or investing wisely. It begins with letting go of limiting beliefs that may have been formed as a result of growing up without money or watching those around you struggle from paycheck to paycheck.

The next step is to create a basic financial plan and set clear goals. This can be done using a budgeting app, spreadsheet or even a small notebook. Track your spending for at least a month and identify areas where you can cut back (e.g., dining out, unused or overlapping subscriptions). Set savings goals and automate your contributions. Ideally, these should be directed into savings accounts that offer high interest rates like a money market account or certificates of deposit (CDs). Read more theinvestorscentre.co.uk

Smart Investment Choices: Maximize Returns and Minimize Risk

Eliminating debt is essential to building wealth and freeing up your income to save, invest and reach your goals. Start by paying off credit card debt — this type of debt typically has the highest interest rate and takes the longest to pay off. Afterward, focus on eliminating other types of debt like student loan or auto loans.

Inflation is a real and persistent force that can work against your wealth-building efforts. It is important to have a well-diversified investment portfolio that is designed to keep up with or outpace the rate of inflation over time.

A tax strategy is also an important consideration when building wealth. A certified public accountant or a licensed financial professional can help you explore your options and develop a strategy that minimizes the impact of taxes on your hard-earned dollars.