The second step is to examine your spending. Write down every dollar you spend for one month. Once you have this done, evaluate it and ask yourself the following questions: Where can you cut back? How can you curb your expenditures?

The third step to wealth accumulation is to reduce your debt. It is possible to save hundreds of dollars in interest every year by consolidating debt and paying off high-interest debt as soon as you can. The sooner you eliminate debts, the less you pay.

The fourth step is to make yourself a priority. You have to pay yourself first. Then continue to save or invest at least 10% of your earnings each month.

The fifth step is to take advantage of tax-deferred savings. This can be done with IRAs, annuities, life insurance and tax-qualified retirement plans. The less you pay in taxes, the wealthier you will become.

The last step to wealth accumulation is to develop a sound investment strategy and stick to it over the long term. In order to do this you have to determine your long-term investment goals. Where do you want to be 10, 20, or even 30 years from now? How can you do that? You have to evaluate your time, and how much of it you have to grow your money before you are going to need it. When you set up your plan do not forget to think about inflation.
Additionally, when you set up your investment strategy, be sure to assess your risk tolerance. Are you willing to ride out fluctuations in the value of your investments in order to achieve higher long-term returns? Or do you need to see regular and steady growth, with perhaps less fluctuation in return?

Part of accumulating wealth is protecting it. Do so by diversifying your money among different kinds of investments, a process known as asset allocation. Also, be sure to have various types of insurance so that your home, family, and other assets are protected.