Basic Wealth Creation for New Employees

Starting a new job and wanting to create wealth

The following article contains advice as to how you should set up your finances to generate wealth creation upon starting your first job. The following guide assumes that you are young, possibly in your 20s, this is your first job and your not sure how you should set up your finances to grow your wealth. This plan will also work if your already some way down your career path. You're never too late to start! However, you will probably have to commit to investing more in your pension pot and contribute more into your savings (assuming you can afford it).

Steps to build wealth

Follow the guide step by step to allow your personal finances to grow roots and then sit back and watch your wealth tree grow:

Step 1 - Find out what your gross salary is. It'll be your income, pre-tax, found on your employment contact.

Step 2 - If your employee has a pension scheme where they match your contribution then maximise the free money that they will give you. For example, my firm contributes 6% for every 6% that I contribute, so I contribute 6%. If your firm doesn't have a pension scheme then invest in your own pension scheme by finding a provider and contributing up to 10% if you're below the age of 30 and haven't had a pension before. Commit to 15% if you're older! See my previous article for the benefits of investing into a pension.

Step 3 - save a further 10%-20% of your net income (income after all your taxes). You can use an online tax calculator if you search in Google to work out your income net of tax. A lot of people may believe that that is too much to save but you will find that your spending adjusts accordingly. Set up your savings so that the day or two after your salary hits your current account, your savings automatically come out. I would advocate either checking with your current account provider to see if they have any "monthly savings" facility they can set up. Alternatively you can open a cash ISA account with your bank and set up a standing order to automatically withdraw funds from your current account and deposit into your ISA savings account.

Step 4 - make sure that you keep a constant update of your spending habits to make sure that you never go into your overdraft. If you're having difficulty with this then email me for help: mrmoneybanks@multimillionaireroad.com. Or else read my previous article for assistance on how to keep track of your spending.

Step 5 - open a cashback credit card to with which to transact all of your spending. This is once again free money that you are missing out on.

Step 6 - Consider opening a stocks and shares ISA trading account (with a cheep online brocker) with which to invest your pot of savings at the end of every 12 months. If you're not sure what to invest in, look for well known FTSE 100 stocks that pay you a dividend. Reinvesting those dividends every time you build up a substantial pot should aid your wealth creation. Resist the temptation to trade your shares. You're investing to build wealth in the long run so don't worry about the short term fluctuations in prices.

Step 7 - wait. Be patient and your wealth will grow over time. Read some of my articles entitiled "Multimillionaireroad Plan" to see how my wealth has slowly grown over the last 18 months.

As you can see, there is nothing fancy about building wealth. It is simply a matter of automating your finances and having patience. Good luck and let me know how you get on.

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