Building wealth is not something you can do overnight. It will require planning, action, and discipline. Money is meant to be spent, that’s a fact. The question is — what do you spend your money on? Are the things you buy on a daily, weekly, or monthly basis, assets or are they liabilities? Are they things you can afford or are they things you’re buying just to show off?
The type of things you spend your money on will define who you are financially, both in the long and short run. I’m sure everyone would love to have more money than they do presently, but are they buying the type of things that will ensure their wealth is built-up rather than depleted? Contrary to popular belief, building wealth has to do more with habits, and not how much money you earn. You could earn $5,000 a month, and after 6 months you may still not have as much money saved as a person who earns $2,000 per month. It all boils down to habits. Spending habits basically boils down to the things you buy, the quantity you buy, and how often you buy them and in this article, I will share with you 7 things you need to buy to build your wealth!
Number 1: A Used Car
For someone who wants to build up their wealth, buying a brand-new car may not be the best way to go. A brand-new car loses 10% of its value after the first month and 20% of its value within the first year of owning it.
Sure, owning a brand-new vehicle can be enticing but why would you want to throw away thousands of dollars just to have that luxury? In fact, the rich avoid this money wastage more often than you would expect and have figured out the optimal age of the car they should buy. The average millionaire drives a four-year-old car with at least 41,000 miles on it so they can avoid the high amount of upfront depreciation that a new car experiences.
As long as the used car you’re buying is in tip-top shape and can conveniently get you from point A to point B, then you’re good to go. Why spend $40,000 on a new car when you can spend $8,000 on a used one? Financial experts have asserted that buying a used car and using it for a long period will save you a lot of money down the line. The extra cash saved can be dedicated to other profitable ventures like starting a business or making extra contributions…