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Building your wealth is almost every person’s dream. After years of hard work and toil, you want something to show for it. But how do you set aside the needs of the present and invest in your future? Here’s a quick but comprehensive guide on how to do just that.

First things first. You can’t build wealth if you don’t save money, and you can’t save money if you don’t know what you have and how you spend it. You probably already know the basics of how to do a budget — and if you don’t, click on the link above — so we won’t bore you with the nitty gritty. The big picture to remember is that setting a reasonable budget that you can stick to and learn from is a huge (!) step towards the ultimate financial independence.

How much you set aside is up to you. Some swear by 10% to 15%, others by figures a little higher. But the younger you start saving, the more time you spend saving, and the less you probably need to put away. So start saving early, even if you’re only setting aside 10%.

  • Another rule of thumb that people use is the rule of 8x. This rule of thumb recommends that you save 8 times the salary you have by the time you retire. By this yardstick, you’d do well to have 1x your salary saved by age 35, 3x your salary saved by 3X by 45, and 5X by 55.

Few things in life are free, and money is not often one of them. In fact, money is so rarely free that you really have to grab the bull by the horns when it comes along. Here’s one situation in which people earn “free” money:

  • Employers sometimes match 401(k) plans. This means that for every dollar of your salary that you put into your 401(k) plan, your employer will put in another dollar from their pocket. Hypothetically, if you contribute $2,500 to your 401(k) and your employer matches, they’ll also pay out $2,500 for a total of $5,000. That’s the closest thing to “free” money you’ll probably ever get. Take advantage of it.

These are just a few ways to get started.

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