You’ve probably heard people say that they’ve tried everything under the sun and given up on the idea of building wealth. Is there still a piece of the puzzle missing? People seeking financial success often want overnight results and wonder why they’re disappointed.
Wealth creation is a structured process. Rome wasn’t built in a day and neither will your wealth. If you’re not where you want to be financially, there’s probably something you still don’t know, or haven’t taken any action on what you already know.
Here are five wealth-building secrets of the rich that can get you closer to your goal:
1. Distinguish between wants and needs
A need is something without which your basic survival is threatened and includes things like food, shelter, and clothing. On the other hand, a wish is anything else that catches your eye.
Modern advertising has distorted this distinction, and as a result, most people tend to spend most of their money on the latest phones, cars, gadgets, and other toys that they feel are “necessities” they can’t live without. .
To build wealth, you must be able to make a clear distinction between wants and needs. Thereafter, learn to meet your needs and procrastinate your wants.
2. Save 10% of every penny you earn
Living from day to day gets you nowhere in the long run. You really can save if you put your mind to it, regardless of how much you make. By the time you start saving 10% and living on 90%, you’ll barely notice the difference, yet you’ll be building a savings foundation. The fact that your savings are growing will give you a comforting feeling.
3. Invest 10% of every penny you earn
Once you feel comfortable with the 10% savings, you can take the next step of investing another 10% of your income. That still leaves you with 80% of your income to spend. Open a specific bank account for this 10% and call it your financial freedom account. Try not to use this money for anything that doesn’t bring you closer to financial freedom. To make the process easier, you can arrange for your bank to make automatic monthly deductions.
4. Be patient
Building wealth takes time. A goal worth setting will take time to achieve. It is often said that if your goals don’t motivate you to get out of bed in the morning, achieve other goals, and if your dreams for the future don’t scare you, then they are not big enough.
Learn to be patient with yourself, with the people around you, and with the process it takes to be financially successful. Keep learning and work your way to the top. Good time and resource management will help you stay focused.
5. Take responsibility for your retirement planning
Most people these days have come to realize that expecting the government or your former employer to take care of your financial needs after you retire is not as safe as it used to be. Avoid the entitlement mentality and take charge of your financial future. Start planning for your retirement right away and you won’t be disappointed when retirement approaches.
To enjoy sustainable financial success, you need a solid foundation. Believe in yourself and work towards your goal on a regular basis.