FIRST STEP TO BUILDING WEALTH

Although it might seem like a no brainer, the first step toward building wealth is to begin accumulating money for investing.  No matter how great an investment idea you may have, it does you no good unless you actually have starting capital to invest.  So as simple as it may seem, the first step toward building wealth is to dedicate a portion of your income for this very purpose.  

While you may feel that every penny you earn must go toward necessary expenses, often what we consider necessary is more of a want than a need.  In my case, my income dropped dramatically in the past couple of years, so it was imperative to correctly identify wants and needs.  I want high speed internet, but I do not need to pay for it.  Since it is available in my area for free at the local library and several restaurants around town, it is a want and not a need.  Eating out is a want for me.  I do not need to eat out, although I've spent countless thousands of dollars doing so over the past 10 years.  I am an excellent cook and have saved a great deal of money by preparing my own meals at home.  

It's small things like this that will help you save money to start your investment account.  Better to decide on the amount you'd like to start with and then figure out how you're going to save that amount.  It's also best if you "pay yourself first" before you pay anything else.  If you have the idea that you'll try and hold the money back, inevitably something seems to come up that prevents you from doing so.  Taking the money right off the top alleviates this problem.  

So if you're really interested in building wealth for a better life now and in the future, there's no better time than the present to start.  It's always best to start saving and investing when you're young, but no matter what your age or situation, it is sure to be improved if you build a residual income through saving and investing.