Wealth building isn’t about mansions and yachts, but accumulating enough money to achieve financial security, become financially independent, and perhaps pass on a legacy to future generations. It’s a deliberate, step-by-step process that requires discipline and consistency. Having a good financial professional as your guide can make all the difference.

The first step is to develop a budget and prioritize the long-term financial goals you’ve identified, such as building wealth, retiring comfortably, or leaving a lasting legacy. Effective wealth builders are able to consistently spend less than they earn, and invest the rest of their income into assets that produce ongoing cash flow. These include real estate, private notes secured by real estate, and stocks. Retirement accounts, like IRAs and 401(k)s, can also be an important part of your overall strategy.

Wealth Building: Strategies to Increase Your Net Worth

Avoiding spending on impulses is another key element of a successful wealth-building strategy. A good practice is to automate your savings so that a certain percentage of every paycheck is deposited into a high-yield savings account. You may also want to consider a regular schedule of reviewing your finances, such as monthly or quarterly.

Developing and growing your business can be an exciting way to increase your wealth, but it takes a lot of capital, commitment, inspiration, and luck. Most new businesses fail, so you need to weigh the pros and cons carefully. In addition, starting a business can be very time-consuming and stressful. That’s why it is a good idea to seek advice from experienced entrepreneurs and investors before taking on this venture.