In a world of average people -- and average salaries -- many of us aspire to join the 7-figure club. Who doesn’t dream of becoming wealthy, so they can stop working, go on guilt-free shopping sprees and take endless vacations?
However, most rich people don’t do those things, and that’s part of how they build and maintain their wealth. There’s a difference between living a life of careless spending (which will quickly drain even a wealthy person’s bank account) and living for long-term financial independence and wealth.
The self-made rich aren’t necessarily smarter than anyone else, but they have mastered some important principles that help them get ahead and stay ahead. Most important, they treat building wealth as a learnable skill -- and it’s one that you can learn, too.
So, if you’d like to join the ranks of the super wealthy, try honing these 10 habits and lifestyle changes and see what financial freedom truly feels like.
1)Rich people Read....A Lot
Rich people are always reading and learning. When I first graduated the first book I read was Get a Financial Life. This book changed my life. It gave me the guidance I needed not to make the same mistakes as my peers. Reading and learning definitely work in your favor. Instead of being intimidated go to your local library and pick up some money management books. Or check out some of your favorite bloggers. You will be surprised by what you will learn.
2)Take time to reflect:
Many of the self-made wealthy spend time in focused thinking every day. Spending 30 minutes (or more) in a quiet space gives them time to reflect on their life and goals, to think about their health and relationships, consider their career and financial goals, and analyze where they’re currently at and where they want to be. Critical thinking time is essential to staying ahead of the market and considering what changes may be coming your way.
This is also time to focus on self-improvement and working through ideas. Some may opt for journaling or writing to help them come up with creative solutions and ideas. Just make sure you’re spending your time on productive thinking. Don’t waste your mental energy on ruminations or negative thought loops that will make you second guess yourself. The wealthy don’t.
3)Rich people invest:
The word invest is a scary word. Especially when you are in your 20s and 30s. However don’t be scurred, I mean scared. Investing can mean a million different things. It can mean anything from setting up a savings account to working with an investment advisor. The best thing to do is to educate yourself. Even if you don’t feel like you can afford it even the smallest investment can make a big difference. Which leads me to my next point.
4)Cut your expenses.
The biggest problem in some people’s path of getting rich is that they always spend more than what they earn. Living below your means will be the easiest to get rich.
Consistently track your progress on how much you’re spending. Use an app or simply an Excel spreadsheet to make sure you always know how much money you have what where it’s going. This gives you a proper place to review and refine what does and doesn’t make sense in terms of your spending.
Start cutting the unnecessary spendings in your life. Do what you can to reduce your bills: make sure you turn off the lights, plan meals to save at the grocery store, and be disciplined about eating in. Focus your life with only the necessities and in no time you will be saving a lot more than what you previously did.
Buying, developing and selling property has always been a major way for people to accumulate capital.
Borrowing could be a key element in this method. Say you borrow #200,000 and put in #50,000 of your own to buy a property for #250,000. Then you develop the property and sell it for #400,000. The property has increased in value by 60% but your #50,000 has now grown fourfold to #200,000. You have to select the right properties in the right areas and develop them wisely.
You are at risk from booms and busts in the property market. However, in the long term this remains a proven way to accumulate wealth.
So these are bold steps taken by Rich people everyday that you should try.
Content created and supplied by: Emmanuelkelechi (via Opera News )