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Experts explain some of the real ways to build wealth.
If your focus is on every dime, he said its hard to dream big or take strategic risks.
Thinking only about cutting puts people on the defensive about money rather than thinking about how to grow it.
Frugality vs. One doesnt build true wealth by investing conservatively.
The difference ininvesting aggressivelyversus conservatively is large.
Because of compounding, time is the greatest advantage in investing.
Kovar agreed, adding, Income growthmatters more than people think.
Strategic money growth beats extreme sacrifice every time, he said.
For those who are afraid they arent saving enough, they should budget for savings and invest those savings.
Specifically, one should not simply budget and track expenses, but one should budget for savings.
You dont successfully build wealth by simply taking what you have left after all your expenses.
We accomplish what we prioritize.
Prioritize savings and invest those savings.
Its better to balance current needs versus future needs and not neglect either, he said.
Similarly, extreme money resolutions or goals can also work against you.
Eliminating all discretionary spending is simply unrealistic and is a goal that cannot be met.
The problem that people get into is that they spend money on everything and dont prioritize, Johnson said.
Prioritize what makes you happy and direct your resources there.
Minimize spending on items that dont really matter to you.
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