Ask most people their dreams, and you’ll commonly hear “Become wealthy”.
If that resonates with you, you may be asking yourself how to start on the road to wealth. Can you set ‘wealth’ as a goal? Experts say yes. But you’ll have to change the way you think, first. What does this mean?
Revise your thinking
Before you can set a goal, it is essential to know your target. Spend time defining your ideal of ‘wealth’. Does wealth equate a healthy retirement account? Does it mean that you can vacation whenever and where ever you wish? Are you wealthy when you leave a sizeable estate for your children and grandchildren? What is the baseline of wealth in your opinion? Once you’ve determined the goal, you can set up an action plan to reach it.
It’s easy to procrastinate. Putting off a savings plan until later, waiting to start a college fund or other wealth generating activities must begin right away. Regardless of your age, but particularly if you are an ‘older’ worker, the more you save now, the more you’ll have later. Consider focusing more on the amount of money you can bring in, instead of always focusing on saving. Sure, do save and live within your means, but consider searching for ways to grow your top line too.
Invest in you
The best asset you have to accumulate wealth is yourself. Don’t be afraid to invest in your own advancement, through additional education, training opportunities, networking and other avenues that will move you closer to your goals.
Set a budget
If you’re serious about gaining wealth, establish a budget that saves more and spends less. Forgo temporary fun for long-term gains. Live within your budget, and find ways to reduce your expenses as much as possible.
Save more than you spend
Financial experts found that people who save at least 10% of their income have more wealth. This seems intuitive, but many people think that saving 3% is an adequate means of gaining wealth. As a long-term saving plan, 3% is minimal. For wealth building, 10% is essential.
Multiple Streams of Income
Most wealthy people have more than one stream of income. These may be from several businesses, investments or income properties. Look for ways to generate wealth beyond simply working and saving. Some ideas could include investing in stocks, income properties or other opportunities. Establish multiple revenue streams and then work to make those a success.
Spend time with wealthy people
Statistics show that you pick up the habits and mindsets of your peers. Want to be wealthy? Spend time with those who are wealthy. Emulate their habits and strategies to adopt a wealthy mindset.
Don’t look for magic
Despite what the infomercials and talk-show gurus promote, there is no ‘secret sauce’ for gaining wealth. If you want to be wealthy, it requires effort and time. Establish a long-term plan, and then refuse to abandon the plan. Review your goals frequently, and make adjustments as needed to ensure your success. It helps to be so aligned with your goals, that achieving them can pull you through a bad day when everything seems to be going against you.
Wealth is easier to attain than most people think. True wealth is more than simply having money. Learn to be happy within your means, while constantly pursuing your goals. The feelings of satisfaction are richer when you are content with what you have – no matter how much, or little, that may be. Plan for success, and work towards the future you desire.
Michele Bailey is the Founder of My Big Idea™. The My Big Idea™ Personal workshops include a substantial section on wealth, covering what it means and how to get it – in a way that is totally aligned with your values. Find out when our next workshop is offered. Or, book your own by contacting us.