Wealth is defined as the value of all the people you own minus debts. A wealthy person is described as someone who can live comfortably for at least 5 years without working. Not everyone can become rich in their lifetime, but you can become financially empowered. Financial empowerment is being in control of your finances, spending your money responsibly, shopping for necessities more often than you buy necessities, and setting goals for your future.

Here are 5 ways to empower yourself financially:

1. Become a homeowner. Becoming a homeowner increases your credit score, demonstrates that you are a responsible spender, provides a tax deduction, increases your financial value, provides you with an asset that will appreciate over time, and provides you with equity.

2. Buy insurance. Buy health, life and disability insurance. Many people go into debt for medical expenses because they don’t have life insurance. Life insurance is essential because medical costs increase 10-20% each year. Disability insurance (short-term and long-term) will help you if you become seriously ill and have to be away from work for an extended period of time. This will help you get back on your feet because you won’t have to worry about how your bills will be paid during this time.

3. Start a business. Find out what your passion is, what you love to do more than anything else. You won’t get financial power working for someone else unless you’re one of the lucky people who bought tons of stock while working at Target, Wal-Mart, or AOL. Do your research before you start your business and take baby steps. Start your business in your home; There are many tax deductions for home based businesses. Once you generate enough income, take out a loan to open your own office. Get the book Rich Dad Poor Dad by Robert Kiyosaki.

4. Purchase of investment properties. All financial experts, millionaires and billionaires have talked about it. They all have the same thing in common. They all own investment properties. If you’re not sure how to get started, do your research, buy two or books on buying investment property, join a real estate group, listen to financial investing shows, and find out the best way to get started. Investment property generates cash flow that can be used to build wealth and makes more opportunities available to you.

5. Plan your retirement. Many Americans today have to work past retirement age because they have no savings and no retirement. When a person looks at his life to see what he has accomplished, it is sad to say that he has nothing to show for it. Many still owe money on their homes, have no savings, and have little or no money in a retirement account. You worked all your life for what, to pay the bills. This is not how life is supposed to be. You must work hard, enjoy life, retire, and then really enjoy life.