| There are so many things involved with
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| | years. However, even these types of debts
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| building wealth that it would take much
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| | should be kept well within your income
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| more than one article to explain it all.
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| | limitations. If you can only afford a
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| So, we've put together a simple five-step
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| | $250/month car loan, then shop around
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| guide to help you get a great start in
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| | until you find one at this price. Don't
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| building wealth for a lifetime.
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| | give in to the temptations and pressures
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| Step 1: Set Specific Goals
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| | to buy the fancier, more expensive car
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| Goal setting is a task that can be easily
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| | with a $450/month payment. It's not worth
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| put off - especially when you are
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| | the risk!
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| extremely busy in day-to-day activities.
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| | You may ask, "I thought these steps were
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| However, goal setting is the first and
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| | for building wealth?"
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| one of the most important steps you'll
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| | As it happens, debt is the opposite of
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| take to achieve wealth. Set both
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| | wealth. The more debt you have, the less
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| short-term and long-term goals.
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| | wealth you will accumulate. You can't
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| Short-term goals may be daily, weekly and
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| | save money or invest money that belongs
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| monthly goals. These should reveal where
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| | to someone else. If you earn $3,000 in
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| you would like to be financially by a
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| | income this month, but owe $2,000 in
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| certain time in the near future.
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| | loans (before everyday living expenses),
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| Long-term goals include the amount of
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| | you can't possibly have extra money to
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| wealth you would like to accumulate
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| | save. You must either earn more or sell
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| within a year, two years, or maybe even
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| | some items to pay off your debt. You
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| five or ten years. Both types of goals
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| | should avoid this "debt trap" if you
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| are necessary to build wealth. Without
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| | intend on building wealth for the future.
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| goals, you are wondering blindly with no
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| | Another type of debt is one for your
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| care or thought of what's ahead. This
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| | business. You may take out a small
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| pattern of life is sure to leave you
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| | business loan to get things started or to
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| empty-handed!
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| | promote your business. If you are
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| Step 2: Create a Business Plan
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| | uncertain about whether the business will
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| Every successful business from the past
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| | bring profits, try to avoid business debt
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| and today started with a plan. Your
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| | until you have tested it a while.
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| business plan should illustrate where you
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| | Step 4: Develop a Personal Plan
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| are now, where you plan to be in the
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| | Above, you developed a business plan. Now
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| future, and how you're going to get
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| | it's time to create a personal plan. What
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| there. Write these few notes down on
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| | tasks will you do daily to build wealth?
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| paper. Then, fill in the blanks to create
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| | Put yourself on a schedule and a strict
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| a rough business plan. It's easier than
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| | budget. Work toward your goals daily by
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| you think.
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| | making a list of things to do and marking
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| *Your current income
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| | off each item on the list as you complete
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| *Business profits and expenses (if you
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| | the tasks. In your budgeting, include a
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| already own a business)
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| | set amount of money you will put away in
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| *Business budget (or personal budget if
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| | savings (savings account, IRA, stocks,
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| working for someone else)
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| | bonds, etc.) If you plan to invest, be
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| *Capital needed upfront to promote and
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| | sure to diversify your investments.
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| operate business
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| | Choose only one or two high-risk
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| *Plans to acquire the capital needed
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| | investments and several "safer"
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| (source of capital)
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| | investments such as mutual funds or
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| *Spending plan (promotions, supplies,
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| | bonds.
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| inventory, online expenses, etc.)
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| | Step 5: Stay focused on the Goal, not the
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| *Expectations (What results do you expect
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| | Circumstances
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| from your initial efforts?)
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| | No matter what circumstances you find
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| Creating a business plan is a necessary
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| | yourself in, keep your eyes on the
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| step to build wealth through your own
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| | wealth-building goal ahead. Even if sales
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| business. Even if you don't own a
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| | are down in your business, don't stop
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| business, you should write down a similar
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| | dead in your tracks. Remember, businesses
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| plan to reach your personal wealth goals.
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| | have ups and downs. If you remain
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| Step 3: Avoid Harmful Debt
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| | steadfast toward your goal during the
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| Debt is the one of the key reasons many
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| | slow times, the busy times are bound to
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| people never accumulate wealth. But
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| | be much better than ever. Your income
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| remember, there are two types of debt:
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| | will grow and you will have the extra
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| harmful debt and necessary debt. Harmful
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| | money needed to reach your
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| debt is the debt you create for things
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| | wealth-building goals.
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| you do not need such as excessive
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| | In a nutshell, building wealth does not
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| shopping, luxury items, expensive cars
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| | happen over night with one get-rich-quick
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| that you can't afford, etc. Necessary
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| | program. It happens with consistent labor
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| debt is a debt most people must have to
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| | toward the goals and tasks you have
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| live, such as a mortgage, car loan
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| | created. You can build wealth for your
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| (affordable), medical, college, etc.
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| | future if you do not waver from these
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| These debts are a part of life for most
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| | basic truths that have worked for
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| families and will be for many, many
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| | millions of others!
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