I wanna be rich! This is a goal that many people share. Unfortunately, only 5% of people actually achieve substantial wealth in their lifetime. If you are going to get rich at some point in your life, you need to stay on track, day in and day out. The path that you are on right now may not be the one you want to continue to follow. These five habits can help get you in the right frame of mind and hopefully assist you in building significant wealth:
1. Set Big Goals. No matter what the word rich means to you, you have to set the goal of getting there. There is nothing wrong with small goals, but to get rich you have to think big. For example, set the goal of building your savings to $125,000 within the next five years. If you don’t want to focus solely on income, set goals based around other financial details such as paying off your mortgage in a short period of time or saving enough money to pay for large purchases with cash to avoid going into debt.
Tip: Make sure while your goals should be “big,” they should still be attainable. You want to challenge yourself, but don’t challenge yourself with an unrealistic goal; otherwise, you will become deflated and feel let down when you don’t reach those goals. Take advantage of positive reinforcement!
2. Don’t lose sight of your goals. Anybody can set a goal, but most people never do what it takes to reach them. If you want to get rich, you have to stay on the right path, no matter what gets in your way. Day after day, review your goal and make sure you are taking steps towards reaching it. Post your goals on your refrigerator, on your bathroom mirror, and on your night stand. Stay motivated!
Tip: Have somebody alongside for support. This can be anybody from a friend who is trying to accomplish a similar goal, or a spouse who is willing to work with you to make this happen. Goals are always easier to reach when you have help on your side.
3. Have a reason for every financial decision that you make. Why are you spending money on that particular item? Why are you only saving 10 percent of your income when you could afford 20 percent? It is very easy to settle into a groove, and make the same decisions time and time again. While there is nothing wrong with this (if you just want to live a normal life), those who want to get rich must always be looking to better their position. Question every move you make, even if it means taking more time to finalize the decision.
4. Keep a journal. Not only is this is a great way to track goals and the progress that you are making, but it also gives you a place to record your feelings on money and related details. You may be surprised at how much progress you make when you begin to put your thoughts down on paper. If you get in this habit, it is easy to look back at it any time and see where you have come from and whether or not you are really on your way to becoming rich.
5. Wait before you buy. One of the best ways to save money and reach your goals is to implement a waiting period before you make non-essential purchases greater than a particular dollar amount. For example, you may decide to wait 15 days before making any purchase of $75 or more. Why is this a good idea? In many cases, you will either forget about the purchase or decide that you don’t really need it. By cutting back on impulse buys, you will be able to save hundreds (or maybe even thousands) of dollars per year.
Are you currently practicing any of these habits? Have you experimented with them in the past?
(photo credit: AComment)