We talked recently about the wealth formula: Spend less than you earn and save the difference. Initially, you may have to cut back to “find” the money to save. Start there if you must. The next step is to learn how to invest your money powerfully. Recently, I took my stepdaughter to the bank to open her first savings account. We agreed that every week; for so long as she was living under our roof, she would take 50% of her pay check and deposit it into a savings account. Then I explained the power of compound interest to her and how her principle would grow each and every month.
Have you seen interest rates, lately? It's sad. The bank was offering 1% interest on her savings. Of course, at that rate, no one is going to get wealthy. What kind of rates of return do you get on your investments? Mutual funds pay about 5%. A little better, but not very impressive. The stock market yields about 12% over time. That's a little better. But there are much faster ways to grow your wealth than that.
Tax liens, for example yield 16% – 24% and are fully secured by the U.S. Government. Active trading can return 30%-50% – so can real estate investing. I've done pre-construction deals that brought 50%-100% rates of return. And of course, if you leverage yourself by using OPM (other people's money) your rates of return go through the roof. You've got to start learning about what's available “outside the box” in terms of investments. High returns don't have to mean high risk. Like most things in life, a little bit of prudence greatly increases the safety factor. There is no way to build wealth that is 100% risk -free. But you can learn to effectively manage your risks and keep them to an acceptable level.