Develop These Wealthy Habits To Build Your Wealth!
Any great journey is made one step at a time, there is no doubt about that. It is also true that to get anywhere you must first know where you are going. On the journey of our financial lives, if we want to arrive at a place of wealth it makes sense to pick up the habits of wealthy people right from the start.
Wealth isn’t built by accident. Observing the day to day choices even those that seem insignificant, of wealthy people will give you a model to follow to help you build a sound financial future. Here are just three habits to give you a start.
Live within your means
Wealthy people avoid overspending by paying their future selves first. They save 20 percent of their net income and live on the remaining 80 percent.
Among those who are struggling financially, almost all are living above their means. They spend more than they earn, and their debt is overwhelming them. If you want to end your financial struggles, you need to make a habit of saving and budgeting what you spend. Here are some sensible ways to budget your monthly net pay:
Spend no more than 25 percent on housing, no matter if you own or rent.
Spend no more than 15 percent on food.
Limit entertainment—bars, movies, miniature golf, whatever—to no more than 10 percent of your spending. Vacations should account for no more than 5 percent of your annual net pay.
Spend no more than 5 percent on auto loans, and never lease. Ninety-four percent of the wealthy buy instead of leasing. These folks keep their cars until the wheels fall off, taking great care along the way so that they save money in the long run.
Stay away from accumulating credit card debt. If you are doing this, it’s a clear sign that you need to cut back somewhere.
Think of savings and investments as two completely different things. You should never lose money on your savings. Try to stash six months of living expenses in an emergency fund in case you lose your job or your business goes belly-up.
Contribute as much as you can afford to a retirement plan. If you work for a company that matches your contributions up to a certain percentage, great. Always take that free money when you can get it…
Talk about a sucker bet: Every week, 77 percent of those who struggle financially play the lottery. Hardly anyone who is wealthy plays the numbers. Wealthy people do not rely on random good luck for their wealth. They create their own good luck. If you still want to bet after knowing the risk, use money from your entertainment budget…
…Network and volunteer regularly
You’ll build valuable relationships that can result in more customers or clients, or help you land a better job if you spend time pressing the flesh and giving back in your community. Almost three-quarters of wealthy people network and volunteer a minimum of five hours a month. Among those struggling financially, only one in 10 does this.
One perk of volunteering is the company you’ll keep. Very often the boards and committees of nonprofits are made up of wealthy, successful people. Developing personal relationships with these folks will often result in future business relationships…
More Wealthy Habits To Help You
How you think about life, time, and yourself are just some of the mindsets that matter when it comes to building wealthy habits that will grow your wealth. Here are some characteristics that are common among wealthy people.
They take risks
Rose explains that the wealthiest people he works with routinely “throw spaghetti at the wall to see what sticks.” In other words, they try a lot of different things, knowing that a lot of it will fail.
They take those risks because they know that failure is just part of the process in discovering what will truly work to build more wealth. Furthermore, as Rose explains, the rejection of those ideas invigorates the wealthy into finding what will work, a stark contrast to most of the population that simply looks at failure as a road block.
They invest in themselves
According to Rose, “wealthy people don’t look at the money spent on personal growth as an expense, but an investment.”
While many individuals conserve every penny equally, the wealthy understand that strategically investing in themselves will produce a far greater return than any stock, real-estate investment or business venture.
Whether it’s purchasing a book, hiring a coach, joining a paid mastermind group or another source of paid self-improvement, the wealthy see this as an investment. Do you?…
…They review their goals consistently
Finally, according to Rose, the rich have clearly defined goals and continually review them to track their progress, make changes and develop strategies for meeting those goals. This process of immediate feedback allows the wealthy to make quick changes to their plans to keep the course in a rapidly-changing world.
While most of the human population gives little to no thought on their futures, the wealthy are reminded daily of where they are headed. Like a family taking a cross-country trip in their minivan, the rich have their road map spread out on the dashboard so they can navigate the fastest, easiest route to their destinations. – Entrepreneur
Are any of these wealthy habits already a part of your life?