- One of the keys to building wealth is living below your means. Sure, you may be able to afford certain niceties that show others you can afford something, but if this has been a major goal of yours in life thus far and you’re worried you haven’t saved enough for retirement, it’s time to re-evaluate the kinds of goals you have with your money. Deciding on how you want your money to work for you is a critical component to building wealth.
- Warren Buffet, one of the most successful investors in the world, and also one of it’s richest, constantly advises people to live below their means and avoid spending lavishly. Rather, he advises people to invest their discretionary income so that it will grow over time.
- Building wealth also comes with the understanding that diversification plays a central role in investing. One should never put their eggs all in one basket.