Fidelity did a survey that showed that 88% of all millionaires are self-made!
Many of us want to become wealthy but we struggle with it. Most of us make money, good money even…but where’s it all going?
We wonder where to start, we think we’ll start tomorrow.. and somehow it just never happens where do we start? How do the wealthy become wealthy? It’s so inspiring that 88% of millionaires are self-made! So what can you do today so that you start building wealth?
Let’s start by looking at the top three habits of the wealthy. If you pay attention and immediately adopt these 3 habits, I promise you, your financial future will DRAMATICALLY SHIFT.
Know what? You don’t create your future. You create your habits, and your habits create your future!
Becoming wealthy often involves a combination of habits and strategies. Here are the Top 3 habits that will shift your financial future forever:
1. Pay Yourself First:
Let me tell you a secret! What’s the secret to being financially wealthy?
Is it making more money? Let me ask you – do you know someone who is making a lot of money but still strapped, struggling and stressed for cash?
Yes, you met HENRY! Henry? High Earner Not Rich Yet. The world is full of them. So if making a high income doesn’t make you rich, what does?
HERE IS THE SECRET:
People with enduring personal finance success — not necessarily those with high incomes — tend to have a propensity to not give a damn what others think about them. This is the most underrated finance skill.
So what does pay yourself mean? The concept of “paying yourself first” is a crucial principle in personal finance and investing. It essentially means prioritizing your savings and investments before spending on other expenses.To pay yourself means to put money aside to be invested.
Wealthy individuals often prioritize saving and investing over spending. They regularly set aside a portion of their income and invest it in assets like stocks, funds, real estate, or retirement accounts. This habit of disciplined saving and investing allows their wealth to grow over time through compound interest and asset appreciation.
If you’re wondering how much to set aside to build wealth and you’re just starting, start with 10%, then slowly build it up. When I was gunning for financial freedom, I managed to set aside & invest 50%-60% of my income. Of course, it’s a muscle, so start at 10% and work yourself up. Trust me, you CAN do this for your financial freedom. Can you ever get wealthy without money? Money is your ticket to Financial Freedom. Put money aside for yourself.
2. Continuously Learn & Grow
Successful people often invest in their personal development. They read books, attend seminars, and seek out mentors to continuously improve their knowledge and skills. This ongoing learning helps them make informed financial decisions, adapt to changing market conditions, and seize new opportunities. What topics should you get education or mentoring in? Great question, here are my top suggestions:
(i) How does money work – the fundamentals of personal finance, budgeting, investing, long-term financial goals, creating passive income streams, planning for early retirement
(ii) Soft skills – how to become better at communication, relationships, and leadership.
(iii) Making money – how to diversify income streams, side hustles, and new skills that can be monetized.
3. Master Financial Goal-Setting & Execution:
Wealthy individuals usually set clear financial goals and create strategic plans to achieve them. They break down long-term objectives into actionable steps, monitor their progress, and adjust their strategies as needed. This focused approach helps them stay on track and make informed decisions that align with their financial aspirations.
Here are the 3 steps:
Step 1: Set Clear Goals – Identify what you want to achieve financially, such as saving for a down payment on a house, funding a child’s education, or retiring early. Make sure these goals are specific. Example: Save $20,000 for a down payment in 3 years.
Step 2: Develop a Budget – Integrate these savings or investment goals into your monthly budget. Determine how much you need to allocate from your income to reach your targets and adjust your spending accordingly. Example: if you aim to save $20,000 in 3 years, calculate how much you need to save monthly or annually. Make sure that’s in your budget.
Step 3: Audit and Adjust: Regularly monitor your progress towards your goals. I recommend tracking it weekly. Be prepared to make adjustments based on changes in your financial situation or goals. If you experience a change in income or expenses, reevaluate your plan and make necessary modifications to stay on track.
Summary:
Becoming wealthy is not chance or luck (unless you win the lottery). It’s like getting fit. Financial fitness takes a goal, a plan, and execution. Follow the 3 steps that the wealthy have followed to build wealth if that’s what you’d like to do too. These are the same steps I followed and continue to follow:
- Pay Yourself First
- Continuously Learn & Grow
- Master Financial Goal Setting and Execution
Did you find the strategies listed in this article helpful? What was your favorite idea? Have you tried any of these and how have they worked for you?
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