Year 2011 - 5 Ways to build up financial wealth

The year 2011 is already 2 months old now. Many of us have taken a resolution of building up some wealth this year. Most of us now agree that it is very important to get rid of our debt and increase our income or build some financial security.

Here are 5 ways in which you'll be able to build up your credit:

1. Get rid of high interest credit cards: In order to build wealth, you should make sure that you reduce the money that you pay off as interest payments. Thus, you should get rid of your high interest credit cards. You should draft your own personal spending plan with the help from a certified credit counselor. If you're able to stick to that plan, it will be easier for you to begin the process for building wealth.
2. Fund your retirement: If you save 2% of the money which you pay in Federal Insurance Contributions Act. You should use this extra money to fund your 401k account. You can speak to your human resource department and change the deductions. Thus, you'll be able to save a little more than you normally do.
3. Invest money in mutual funds: Investing money in low-cost mutual funds is considered to be one of the best ways to build wealth. However, there is always a risk of losing money in stocks. So, you should take professional help in order to invest money in mutual funds.
4. Take out a mortgage: Buying a home is also a good way of building wealth. Mortgage is known as good debt. The mortgage rates are going quite low. You can invest your money in it and also live in the property. You won't have to rent a property and drain your money as rental payments. Moreover, with time, you will build up equity in your property. Thus, you can cash in the equity in the form of cash out refinance whenever you require it.
5. Start a business of your own: Using your free time to start a side business will help you in building your wealth. You should choose such a field which you're passionate about so that you can give time to it after your job gets over. This is a good option for the unemployed people as well.