7 Ways for Entrepreneurs to Build Personal Wealth

By | February 8, 2018

Making a pile of money and keeping a pile of money are two very different things. I’m frequently puzzled by professional athletes and executives who make very good wages yet still struggle with money troubles. There are no secrets, just solid habits for building personal wealth.

  1. Live within your means. My advice to my clients for this is don’t buy goods you don’t need with money you don’t have to impress people who don’t matter. Fancy cars, boats, vacations, and, yes, jewelry are meant to impress. Unless you are investing in a growing asset, you are spending money for flash, not future.
  2. Grow your money through investments. There is no sure thing. However, there are low-risk, proven ways to increase your money through sound investments. Creating the habit to invest as a monthly or annual practice is the best way to allow your money to work for you.
  3. Never be a slave to your wages. Own your property, never let your property own you. I’ve watched entrepreneurs in good times overspend lavishly only to be bound by long-term payments that become a burden and a significant cause of financial stress.
  4. Explore new frontiers. Be willing to experiment and give new ideas a try. Long-term business owners can fall into the rut of comfort and get satisfied with the common. To keep a business fresh, you have to explore, experiment, and try fresh ideas. Not all of them will work, yet a few will help your business grow and expand.
  5. Gamble. Life is filled with risk and business owners probably recognize this more than most people. Let 10% of your investments play on a gamble. A new stock, cryptocurrency, and a start-up opportunity are gambles that could pay off huge dividends without breaking your bank roll. Let 10% of your money breathe.
  6. Eliminate the waste. Most successful business owners are very good at monitoring and controlling costs, yet their personal money habits are wayward. In working with one client, we found he was spending $5,000 a year on Starbucks and cigarettes! Another found he was spending over 50% of his food budget on eating out, but not for fancy celebratory meals. It was most often for convenience and from a lack of planning.
  7. Manage your money like it’s a business, because it is. Look at your home finances. Do you have a monthly finance meeting? Do you dig into expenses as you would with your business? When it comes to your personal money, monitor it, measure it, and manage it monthly.

Financial pressures are one of the greatest causes of family stress. As an entrepreneur, you already have significant stress in your life that comes with owning and running a business. Your most valuable resources to manage are your money and your time. Use these 7 methods to better manage your money and build your personal wealth.

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