Wealth is a deceiving concept. Most people think that only individuals who earn an enormous amount of money can become wealthy. But that isn’t true, all you need is a little bit of discipline and a change of behavior to achieve wealth.   If you brush up on a few simple concepts you too can become wealthy.

Building wealth is not about how much you make but more about how much keep.You too can achieve wealth even though you may not bring home a huge pay check.  Let’s review some basic concepts:

Achieving Wealth:

Live below your means:

  • Achieving wealth and avoiding debtWhen you are deep in debt you are living beyond your means.
  • If you can’t afford something, don’t buy it.
  • Debt will not help you achieve wealth.
  • Debt makes you a prisoner.
  • Debt does not bring you freedom but instead cripples you.
  • Free yourself from the burden of debt by developing some good financial habits.
  • If you have to pay for something with your credit cards, don’t buy it.

Develop good financial habits:

  • Shop your insurances every year.
  • Make a home and auto insurance comparison every year.
  • Raise your home and auto insurance deductibles.
  • Maximize your 401k contribution every year.
  • If your employer matches, you definitely want to maximize your 401k contributions because you are getting free money.
  • Work with a mortgage broker on possibly refinancing your mortgage to get a lower interest rate.
  • Make an extra mortgage payment every other month to decrease the amount of interest you pay over time.
  • Do not carry a balance on your credit cards.
  • Cut out any wasteful spending.
  • Stop those subscriptions to periodicals that you never read.
  • Cancel memberships that you never use.
  • Bad habits can be expensive.
  • Negotiate with your wireless company for a better deal.
  • Negotiate with your cable or satellite company for a better deal.
  • Order your credit report every year.
  • You can order credit reports for free every year from each of the 3 national credit reporting agencies.
  • Check your credit reports for errors, immediately notify the 3 credit reporting agencies if you find errors.
  • Don’t over use your credit cards.
  • Don’t exceed the credit card limits, this lowers your credit score.
  • Pay all of your bills on time.
  • Your bills include: credit card, mortgage or rent, utility bills, association fees, cell phone bills, auto loan payments and student loan payments.
  • Keep your credit scores above 750.

Today is the perfect day to start changing your financial habits.  The better your habits are and the more you live below your means, the quicker you will obtain wealth.   It is a process, it will take time but that’s okay.