Unless you are fortunate enough to inherit wealth or you are just lucky, the only other way you can attain wealth is the old-fashioned way – by practicing good financial habits. These habits may seem so ordinary but they have been proven time and time again to work.
Steps to becoming wealthy:
Step #1 – Watch Your Spending Habits
Identify your spending habits. Are they helping you attain wealth or are they making you poor. Some of those habits may include:
- Comparative shop for everything: food, clothing, insurance premiums, cable tv or satellite tv and cell phone service.
- Shop your auto insurance and home insurance once a year. If the price is right maybe you should consider making the switch.
- Only buy an item when it goes on sale.
- Do not buy new things when you are bored with your old things.
- If your car runs great, why buy a new one.
- Be mindful of your credit scores.
- A good credit score is above 750.
- Order credit reports for free once a year.
- Don’t exceed your limits on your credit cards, it will damage your credit scores.
Step # 2 – Review Your Saving Habits
Always remember that it’s not really about how much you make; but rather more importantly, how much you keep.
- Establish the discipline to save.
- Put your savings program on automatic pilot.
- Set up an automatic withdrawal of a certain amount of money every month from your paycheck into a savings account.
- With an automatic savings program you will learn to live on less and save more.
- When you need to make a purchase, the money will be available.
- You will not buy on credit, you will not need to take out a loan.
Step #3 – Develop Good Investing Habits
Investing is different from saving. Investing is usually for long-term purposes. Saving are used more for short-term purchases.
- Invest the maximum amount allowed in your 401k plan every year.
- Get the employer match, if offered.
- Work with a financial adviser.
- The best way to find a good financial adviser is through a referral.
- Even if referred to you, still interview the financial adviser and ask for a few references.
- Use the financial adviser to help you fine tune your investment skills.
- Have the adviser review your portfolio and advise you or confirm your current investment decisions.
Attaining wealth will require a different approach than just getting by. With the proper discipline anyone can become wealthy. Attaining wealth is not just for the lucky. Start by learning what your current financial habits are; then develop those that you are missing or are weak on.