The United States of America is the Land of Opportunity, where independence is valued, The American Dream is attainable, and everyone can succeed with hard work and determination.
But not everyone seizes the opportunity.
Are You Determined To Be Rich?
If you are determined to be wealthy, you must get on the right path to riches. Consider these top 3 habits to increase wealth.
Dream Big, Plan Better, and Implement Ferociously
One of the most tragic fates in life is that a person believes getting rich is out of their reach. They may see their parent’s struggle and believe that is their own future. Regardless of your family history or current financial situation, believing you can become wealthy is crucial to achieving it!
Being rich is not a privilege awarded only to a select few. Especially in America, anyone can be rich if they are willing to pursue it. Part of that process is seeing it, and believing it so hard you can taste it! To do that, you need to lay it out clearly.
Vision, planning, and execution are among the most important traits of the wealthy. These people are not satisfied with the status quo and develop, plan and implement ways of increasing their wealth. It requires a certain level of risk but living outside of one’s comfort zone may be the best way to improve your own future.
If you don’t pursue your own goals, you will end up working on someone else’s!
Having dreams is the best starting point. Feeling free to imagine the possibilities is an important exercise. Do you want a big house, many cars or to retire early and travel abroad on a regular basis?
Whatever you desire in life, it is important to make notes. From there, you can objectively set out a timeline to realistically achieve these dreams. This is the initial planning phase.
Dreams are great, but if you don’t set a time frame and the method to achieve them, dreams will remain nebulous wishes. It is important to turn each dream into actionable goals.
Consider what is required to achieve each of these goals and break them down into necessary, actionable steps. Once you have created a detailed, workable plan, include any training, and support you may require to achieve your goals. Will you need to go back to school or work with a financial planner? Research and find the best professionals to help you on your way. Will you need time or money to achieve a certain step? Write down ways to accomplish this.
Once you have the lifetime vision and the year to year plan, it is time to break it down to quarterly or monthly goals so you can measure your achievements and stay on track or revise your objectives. Don’t wait for the new year, a season, or any other excuse to begin.
Now it is always the best time to implement your plan!
Live Within Your Means
Most people know that maintaining a lifestyle that is affordable is the best way to be financially stable and become financially independent. It is also one of the initial keys to wealth.
Spend Smart
Saving is crucial to building wealth, but it is important not to focus so much on saving that you start neglecting earning income.
Mark Cuban wrote:
Save your money. Save as much money as you possibly can. Every penny you can. Instead of coffee, drink water. Instead of going to McDonald’s, eat Mac and Cheese. Cut up your credit cards. If you use a credit card, you don’t want to be rich. The first step to getting rich, requires discipline. If you really want to be rich, you need to find the discipline, can you?
This is a great perspective, yet taken to the extreme, the mentality of living frugally by clipping coupons and shopping sales can be so time intensive that a person may miss great opportunities to increase wealth. Put another way, is it worth spending an extra hour to drive and shop to save five dollars? Consider your current hourly income and also the income level you desire before taking on these seemingly worthwhile pursuits. Always ask yourself: Would your time be better spent working towards increasing your income?
Stop worrying about saving pennies and running out of money and invest your time in make more income.
Do eliminate all credit card debt as quickly as possible and once that is achieved, only use credit to buy goods and services you can pay off fully each billing cycle to avoid paying any interest or penalties. Credit card interest can cost up to 25% extra on your purchases. What would you rather use 25% of your money for in your life?
Be Grateful
Being grateful is about enjoying what you have and not feeling deprived of anything in life.
Don’t covet or buy things you can't afford. If you are in debt, stick to buying only the items you really need. Even if you increase your income, don't use that as justification to give yourself a lifestyle raise until you are debt free. If you live above your means, you won't ever become wealthy.
Pay Yourself
Saving is integral to becoming wealthy. Most people have heard the expression:
If you want to get rich, pay yourself first.
It is easy to believe that if you pay all your expenses like housing and credit card bills on time that you are financially responsible. All that is to take care of other people – probably complete strangers. They should take second place to you and your family. It is essential that you pay yourself first.
As little as ten percent of your income set aside every pay period in a high-interest account will ensure that your money will grow exponentially with compound interest. Once this has grown to a more considerable sum, such as a thousand dollars, consult your financial advisor for even better ways to invest those funds. Above all, start NOW.
Work Smart, Not Hard
Most people have heard that hard work will get them ahead in life. A lot of people have realized that this is not entirely true. Working hard is like being on a hamster wheel. A person just keeps going and going without ever getting anywhere.
Don’t be content with a steady paycheck. The average person chooses to get paid based on time — whether on a salary or hourly rate. Wealthy people choose to get paid based on results and are often entrepreneurs.
To ensure future wealth, you must work smart. Regardless of your profession, use your money to earn money. Invest in a financial model where your money earns money with little or no risk.
"On average, millionaires invest 20% of their household income each year," Ramit Sethi wrote in his New York Times best-seller, "I Will Teach You to Be Rich." "Their wealth isn't measured by the amount they make each year, but by how they've saved and invested over time."
The earlier you start, the better.
This is more than just speculating on the stock market and hoping for a big return. It is finding shrewd investments, such as real estate, where your investment remains tangible in a physical property and you can receive monthly passive income through rent.
Some people are intimidated at the prospect of owning real estate rentals. It is possible to do this without taking a huge amount of risk and without a lot of time or effort. Partnering with experienced professionals is a great way to get returns without a lot of knowledge or time invested.
A common thread among millionaires is that they develop multiple streams of income and adopt smart savings habits. They have a vision and the will to see their plan through to the end. Many live more modestly than they can afford. Most have accrued some portion of their wealth through real estate investments.
The best way to join this circle is to think of the future you desire and to implement your plan to achieve it as soon as possible. Get on the road to wealth today!
Knowledge is power and updated knowledge is the most powerful of all.
It takes discipline, but living within one’s means is key to accumulating wealth. Being financially responsible in the present is a good way to ensure a comfortable future.
These steps are good places to start a more conscious and directed route to achieving your financial freedom. Read, reflect and take what will work for you.
Bottom line is that there is no blanket strategy. Each person must evaluate their own circumstances, needs, and desires. Get the help you need to achieve financial freedom.
If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much.
-Jim Rohn
Above all, believe in yourself and believe that you will achieve your goal!
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Sources:
Lynda at Sonoran Sun | Private Equity Investments
Mark Cuban On How To Get Rich
10 signs you'll never be rich
