Building Wealth, A Starters Manual
Start with a base, build from there
Building wealth is a process. It has a beginning – starting to save – but really no end. It’s an on-going endeavor where you will constantly reevaluate, refine and improve. We’re not sure quite what to call this pyramid, but we think you’ll get the point.
Naming aside, this is a spin on Abraham Maslow’s Hierarchy of needs. In his, you need to meet your physiological needs – food, clothing, shelter – then your safety needs, physical security, safety, long before your reach self-actualization – your full potential.
We think about saving and investing much the same way, only in our case, each is measurable in real dollars and cents.
If you’re not saving, forget everything else because you’re not going to make any progress. Savings is a pre-requisite for building wealth. Once you start saving, you need to invest, or else the money will never grow (or at least so slow it won’t matter). Next, you need to make sure you’re not overpaying on investment fees. As we show here, fees really matter, and they can be the difference between just making and it really making it big. Free money means taking advantage of things like a match in your 401k or special bonuses for college savings accounts. This is not available to everyone, but if it’s available to you, take it. Finally, are taxes. The more you make, the more money you’ll end up with in taxable accounts, so though for most people this is a later consideration, eventually, this will become a primary focus for maximizing your wealth.
WeVest is here to help
Like any pyramid or building structure, start at the bottom building your foundation firsts, and work your way up. Every new level you build on is an incremental improvement, and as you can see, the benefits are real! The WeVest App will guide you through each of these steps, establishing savings goals, tracking your progress, looking for areas to improve, and predicting your future net worth.