Rules for Wealth Building and Amassing Money

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Even "Good Debt" isn't Really Good

With a few exceptions, debt can serve as a form of bondage to enslave the borrower, often for years. Visualize your life with the freedom of not owing money on anything. Resist the urge to "keep up with the Joneses" and charge up credit cards for things like expensive clothes and lavish vacations. Make paying off your existing debt a priority.

Get Clear on Your Relationship with Money

This rule is less obvious, but If you don't like where your parents were financially at your age, make different, conscious choices for yourself and your family. During your upbringing, the way in which your parents managed their money has likely influenced your financial management today. Money is nothing more than a piece of paper with the image of a famous person on it, and when you understand what it represents to you, you gain insight into your spending, saving, and earning habits. If you have always felt that you don't deserve to earn a higher salary, live without debt, or have as much money as "other people," these beliefs can cause you to make poor financial choices that will hold you back.

Take Advantage of Retirement Plans

Max out your contributions to retirement accounts each year. Especially if you are young, you have the distinct advantage of time, meaning additional years of compounding interest growth. If you have a 401(k) plan through your employer, especially if they match your contributions, pay into it to take advantage of that match. You could also, on top of that, fund a Roth IRA with annual contributions. Avoid a common mistake: Do not borrow money out of your retirement accounts. You won't be able to contribute more funds until you pay back the loan; you might find it harder to make contributions in future years, plus you'll have missed out on accumulating interest on the borrowed funds.