Three Ways to Build Wealth for Your Future
June 15, 2021 by agutting@reviewjournal.com
Filed under Conversation
Three Ways to Build Wealth for Your Future
By Craig Kirkland, EVP/Director of Retail Banking, Nevada State Bank
Craig Kirkland, EVP/Director of Retail Banking, Nevada State Bank
Several years ago, I was introduced to the book “Rich Dad Poor Dad” — which defines wealth as how long someone could live on passive and other sources of income, if one were to lose their primary income source. Despite being relatively comfortable, the idea of not having a paycheck was terrifying, as I’d built up little wealth and was living paycheck-to-paycheck. I read all about budgeting and investing, and set my sights on building sustainable income.
Today, it seems like there are more ways than ever to add additional income streams, however, I recommend three primary sources: wages, real estate, and business.
Wages
Your first income stream is your job. Protect this by investing in yourself through education, mentorship, and networking. If you have a 401(k) at work, contribute enough to take advantage of any amount your employer matches. If you don’t have a 401(k), invest in an IRA.
Real estate
Invest in real estate. Buy in the best location you can. Hold on and build equity over time. To buy real estate, you first must build and protect your credit.
Real estate hack: If you/your spouse has a real estate license, you get the advantage of seeing properties immediately; you get the commission when you buy or sell in the area you are licensed for; and there may be tax advantages (consult your advisor).
Small Business
Invest in yourself. Take advantage of entities like the Small Business Development Corporation and create your business plan. You can browse businesses for sale, too — check out sites like BuyBizSell to get an idea about industry, price, and cash flow.
Develop opportunities available to you. Be intentional. Write down your goals, then post it somewhere you can easily see and be reminded, which aids in building discipline. You have to play the long game. It’s never too late to get into the game and start to help build foundational and generational wealth.
