Building actual wealth comes down to just a few simple habits, and the earlier you establish them in your life, the better your chances of reaching seven figures.
Set your finances to autopilot. Putting your financial plan on autopilot will not only help you build wealth, it will save you time and mental energy. Automating your budget, bills, retirement, and investments will take a huge stress out of your life. You won’t need to worry where your money is going, what you need to pay, and who you need to pay it to. You can use that time for other things.
Read one hour a day. This should be a given, but reading an hour a day directly correlates with higher education and income, as well as overall happiness. Bill Gates does it, Warren Buffet spends 80% of his time doing it, Elon read books to learn about rockets and now we have SpaceX. Reading will help your memory, your vernacular, and it will boost your intelligence.
Build multiple streams of income. Developing multiple streams of income could mean starting a side hustle, generating passive income or picking up a high-paying side job. It is without a doubt one of the most important things you can do. By starting a side business, you open yourself up to a lot more tax write offs as well. If you were able to make a business that works 24/7, it would only have to generate 11.41 an hour to gross 100,000 a year.
Hang out with people who are wealthier and smarter than you. The people you surround yourself with every day matters. We become like the people we associate with, and that's why winners are attracted to winners. By aligning yourself with this crowd, you will immerse yourself in their way of thinking, budgeting, and investing.
Think bigger than you are. Be creative. While the average person spends their time thinking about movies, cars, and games, the wealthy are always looking for ways to grow, ways to invest, and ways to get bigger. If you are constantly building upon yourself, and for ways to start something new, sooner or later it will just click.
Invest. Plain and simple. Invest your money, either in hard assets such as real estate, or the markets. Having all your net worth in a savings account earning next to nothing is not the way to grow your net worth! On average, millionaires invest 20 percent of their household income each year. Their wealth isn't measured by the amount they make each year, but by how they've saved and invested over time.
Budget and Plan. Those who maintain both a calendar and to-do list are more likely to be millionaires, as compared with those who have no real set schedule. It’s easy to understand why. Having no plan in place, you leave a lot of time on the table. Also document everything. It doesn’t matter how, if it’s in your IPad, or on an actual pad, when you think of something creative, write it down. When you have a great meeting, or read a great book, write it down.
Wake up early. The wealthiest, most successful people tend to start the day before the average person. In a five-year study of 177 self-made millionaires, author Thomas C. Corley found that nearly 50 percent of them woke up at least three hours before their work day actually began. Think of it like this, with three hours of uninterrupted time, it leaves you to do your most important work before the day gets hectic.
Create specific money goals. A goal is just a dream. A goal with a budget, and timeline, is an actual plan. If you want to build wealth, you have to have a clear goal, specific plan and hard deadlines. And when you're setting goals, don't be afraid to think big. Set your expectations exceptionally high and take up the challenge. Plan out every aspect of the goal. How many hours you need to work to pay for it, how much risk/reward there is, what it would take if there were set backs. Make it as detailed as possible.
Get comfortable with discomfort. If you want to earn more or get ahead in life, you have to be willing to step outside of your comfort zone. This includes negotiating your salary. It's one of the simplest ways to boost your earning potential, since those who ask for more usually get it. Yet most people don't even try. Sure, negotiation can be a tricky business, but not getting paid what your worth could mean the difference between an average life and a rich one. In a recent study, those who stay with their company for longer than two years, and don’t ask for raises, make 50% on average life time earnings. That is huge. That is the difference of having a retirement at 65 and working until you’re dead. A dollar today is worth more than a dollar tomorrow. So get uncomfortable and step up to the plate.
Hopefully, if one of these insights help you grow your income, assets, or net worth, I did my job and helped you along your path in life.
Investments in securities do not offer a fix rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested. No system or financial planning strategy can guarantee future results. Therefore, no current or prospective client should assume that future performance or any specific investment, investment strategy or product will be profitable.