So many of us sell ourselves short. We believe you need to be born into riches or that you need a sizeable amount of money first before you can make more money. This is a defeatist attitude that could stop people from accomplishing much in life. It is possible to build wealth using a little imagination and a fair amount of perseverance. Sounds simple? Well, it is, but it could become boring, which is why not many people follow through with the formula.

Why do we fail?

It’s actually a simple question, when you stop to consider it. We become lazy and worry more about what’s for supper than whether we should consider a more diverse portfolio. Some of us do not even reach that stage, instead we move money from one credit card to another, just to pay for that supper!

This might work for a short little while, but only until it starts to catch up with you. before you even open your fancy wallet to pay for a ticket to the opera or for that bottle of Johnny Walker, you discover you have maxed out ₤5,000 on your VISA card and another £3,000 on your MasterCard.

Debt consolidation could be a smart move, if you know what you’re doing and you will not be tempted into racking up even more debt now that the original debt has been squashed. The phone calls will stop, which might lull you into a temporary feeling of accomplishment, but remember, there are still bills to be paid. Your monthly payments become lower and this might signal, for some people at least, an opportunity to shop up a storm, which will really just take you back to square one.

What is the solution?

There is no single solution for everyone. Although bankruptcy might seem like an attractive option, think carefully on whether this is a viable option for you?

So what is the million-pound answer? It’s easy, really. Once you have cleared your debt, you should learn to go without spending all your disposable income all at once. Take your paycheck (or as much of it as you can bear) and spend it on assets. Be on the lookout for items that will put money back into your pocket.

And no, it does not matter which type of investments you choose, as long as they all enable you to get out of the debt trap.