It’s easy to say the words “build wealth”, but the practice of building wealth takes discipline. I learned the definitions in schools, but I didn’t learn HOW to create wealth for myself. The basics are simple, make sure your assets cover your debts.
Here are some habits. These practices are employed by some of the richest (and wealthiest) people on Earth.
Drive a modest car: it isn’t necessary to have the most expensive, flashy car out there. At the end of the day you want to get from point A to point B. Me personally, I like to have comforts and features I’m willing to pay a little more for, but I stick to what’s affordable and needs little maintenance investment. Reportedly Mark Zuckerberg drives a modest $30,000 Acura TSX entry-level sedan.
Buy a modest house: when I lived in Minneapolis I owned a modest house in a nice neighborhood with retired people and young families. The price was within my range and it wasn’t the biggest house on the block. At the end of my block lived the founder of a major restaurant chain. Could he have lived in a more prestigious or affluent neighborhood? Absolutely! But he had what he needed to be happy, NOT what he need to impress others. Warren Buffet’s primary home is the one he bought in 1958 for $31,500.
Choose your splurges: don’t spend to impress. Pick one or two areas you like to spend on and stick with that within your means. If you like to have a nice wardrobe, plan for some higher spending there while keeping other areas modest or low. Make a budget for those splurges and stick to it.
Look for deals: it isn’t necessary to pay full price because you can. Always check to see if you can get something cheaper or for a bargain. Or find out if there’s a cheaper version of what you want. There are all sorts of websites and apps where you can compare prices or download discount codes. Don’t shy away from coupons. A personal favorite site of mine is www.ebates.com. You get money back for the things you buy.
Make a plan: make a plan work the plan. Winning the lottery is not a plan. Sit down and write out what your goals are and how you will achieve them. If you want to pay off your credit cards, come up with an action plan. If you want to invest more, come up with a plan. The plan must have starting\ending points, goals, and executable steps. A great place to start is to know your credit score. Wealthy people have one thing in common, they are people of action. They are not waiting around for the Universe to just drop money in their hands. They show the Universe they want it and deserve it.
Give: wealthy people give of their money and their time. It’s important to put out into the Universe what you want to receive. More importantly wealthy people want to share their happiness and abundance to help others succeed. Don’t believe me? Check out Warren Buffett, Bill and Melinda Gates, Oprah, etc. They get more than money can provide by giving what money provides.
This is just a start. Wealthy people have all sorts of habits and tips. I follow all of these myself. And I am wealthy.
I’m just keeping it new.