Building wealth: How to get started (step-by-step guide)

Welcome to my guide that shows you how to start your journey toward financial stability and independence with strategy and clear goals. In this article, we’ll cover the basics of wealth building, from understanding what it means to actionable steps you can take to achieve your long-term financial goals. Let’s get started!

Table of Contents

• What is wealth building?
• Why is wealth building – especially for women – so important?
• Setting financial goals and building wealth strategically
• Wealth building in Switzerland: Your options
• Summary: Your first steps to building wealth

What is wealth building?

Wealth building is the process of increasing your financial assets over time by actively saving, investing, and pursuing financial goals. This includes budgeting, reducing debt, making long-term investments, and strategic financial decisions. The goal is to achieve long-term financial security and independence, whether for a comfortable retirement, buying property, or supporting your family.

While the term “wealth building” may sound daunting, it’s actually a series of small, manageable steps that add up to something big over time. If you start today, you’ll thank yourself later when you’re standing at the top of your metaphorical "financial mountain", looking back at what you’ve achieved.

Why is wealth building – especially for women – so important?

Before diving into how to build wealth, let’s talk about why it’s crucial, especially for women.

You’ve probably heard of the gender pay gap: In Switzerland, women earn 18% less than men. Over a career, that’s 43% less! As a result, women can save far less for retirement. Many also take career breaks to raise children, further reducing their pensions. This leads to women receiving significantly smaller retirement incomes than men.

Every individual should prioritize private savings and wealth building for retirement. For women, it’s essential to avoid financial dependence or the risk of poverty in old age.

Setting financial goals and building wealth strategically

Understanding why wealth building matters is just the start. Now, let’s focus on how to begin. Like any major project, building wealth requires a plan.

Start by assessing where you currently stand with these questions:

• Do you know how much money comes in and goes out each month?

• Do you keep a household budget or track expenses?

• Are you already saving for retirement?

• Have you set aside an emergency fund (around three months’ salary)?

• Are you investing any part of your income?

• Do you own other assets like property, vehicles, or stocks?

Depending on your answers, here’s what to do next:

• No clear overview? Start by tracking your income and expenses with a budget. Use this to determine how much money you can set aside monthly. If you have debt, prioritize paying it off before investing.

• Have an emergency fund? Now, figure out how much you want to save monthly. For instance, calculate your retirement savings gap to estimate how much you need to save to meet your goals. Break this down into smaller, manageable targets.

Feeling overwhelmed by financial planning? Join my free online workshop, where we’ll discuss how I can help you structure your personal wealth-building journey and achieve your financial goals!

Saving alone won’t grow your wealth, especially in times of inflation and low interest rates. To maximize your money, consider these options:

1) Private pensions (3a and 3b pillars): Contributions to these accounts allow you to invest while reducing your tax burden. Learn more about how they work here.

2) Investing in bonds, stocks, ETFs, and funds: This is my top recommendation for achieving financial independence. You can start small, diversify your risk, and let your investments grow over time. Read this ETF guide before making your first investment!

Find all of this and much, much more in my FREE "4 Rules of Investing" guide - download now! 👇🏼

3) Investing in commodities like gold: If you prioritize safety, gold is a secure but low-yield investment. It’s not ideal for beginners, as it’s costly and requires more knowledge.

4) Real estate investments: A classic choice but not always the best for starting out, as property ties up a lot of capital.

5)Alternatives like crowdlending: This involves lending money in exchange for regular interest payments. It carries risks but offers another way to grow your wealth.6)

Cryptocurrencies: These can complement your portfolio, but limit your investment to 5% and stick to established options like Bitcoin or Ethereum.

Summary: Your first steps to building wealth

1. Understand that building wealth is a long-term project.

2. Track your income and expenses.

3. Save a financial cushion for unexpected events.

4. Calculate how much assets you’ll need for retirement or major goals like early retirement. Break this into achievable targets.

5. Choose investments you understand and that suit your needs.

6. Start now!

Schedule regular “financial dates” with yourself to review your progress. Did you receive a tax refund? Consider investing it. By prioritizing your finances, you’ll not only make progress but also start to enjoy managing your money.

A great way to get started is joining my free online workshop - I'll see you there? 👇🏼