5 Ways To Build Wealth While Sticking To Your Budget

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So you're finally at a place where you want to start planning for a better future? That means you're probably looking for ways to start building some wealth, but you may still be living on a budget. Don't worry, because there are lots of ways to continue building your future wealth while you stick to that budget. In fact, sticking to your budget is probably the first step in building your wealth. As you make those important financial plans, here are a few tips to help you get started.

Track Your Spending

The first step in planning for a great financial future is to cut costs now, so you can save money long-term. Start by tracking your spending for a month. Don't make any big changes, just write down everything you buy and start categorizing that into the right areas. Pretty soon, you'll have significant insight into where your money goes and where you can cut back. Maybe you'll find that you can save money by bringing your lunch to work every day instead of going out to eat. Or perhaps you'll find that you can live without cable television or another large expense. Wherever you can can start cutting costs, do it, and then you'll have a place to start saving.

Learn To Negotiate

Most wealthy people know how to negotiate, so be willing to learn about this very important skill. Start small and you'll find ways to really bank some savings, too. Most credit card companies will let you negotiate your interest rates, and you can call your cell phone, cable or internet provider to negotiate for a lower monthly bill. Sometimes just a simple phone call is all it takes to end up with hundreds of dollars a month on savings. You don't have to be an expert here, just be willing to ask for the discount and start from there. You may end up with a free month of service, a lower monthly bill or a lower interest rate, all of which can help in planning for your new financial future.

Get A Cushion

As you start saving, your first goal should be your emergency cushion. The goal is to have at least three to six months worth of living expenses saved and available for any kind of emergency. This is important in preparing you for any kind of inevitable setback like layoffs or health problems. It may seem daunting to have that much in savings right away, so start small. Aim to have enough to cover your mortgage for one month. Once you've got that stored away, add another bill, then another, and start moving up from there. Before you know it, you'll have a significant savings that can be life-saving when you need it most.

Maximize Your Matching

If you're one of the lucky people who works for a company that matches your 401(k) and you're not taking advantage of it, then you're literally throwing money away. Some employers will match up to 100 percent of their employee's contribution, so make sure to contribute as much as you can. Even if you can only spare a few dollars each paycheck, you'll be surprised how quickly that all adds up to a lot of money. Remember, all your contributions are pre-tax, so you really won't notice that money coming out of your paycheck every week.

Time To Invest

As you start putting money away and you keep reducing your expenditures, you'll find that you are finally able to invest some of your savings. This is where you definitely want to seek the assistance of a professional. Find someone qualified who you trust to help you navigate the tricky waters of investment, and then start investing. In general, the rule is the higher the risk the higher the reward, but a knowledgeable investor will know the right way to get build your portfolio. If you've never tried investing on your own, don't be afraid to ask for help on this one, it's a small price to pay for a tremendous amount of knowledge.

Deborah Flomberg is a theater professional, freelance writer and Denver native. Her work can be found at Examiner.com.