Let’s face it; a lot of us wish we could take the lazy way towards long-term wealth. We’re all looking for that one trick that will help us join the other 9.63 million American households with a net worth of over $1 million dollars.
Unfortunately, we all know that there isn’t one magic way to get rich and stay rich. If there were, everyone would be doing it!
Focus On Your Income
Essentially, there are two ways to become and stay wealthy; you either have to grow your income or reduce your expenses. Let’s start by talking about the power of growing your paycheck.
No matter what, your income is your most powerful wealth-building tool. The more you earn, the higher your likelihood of success. Furthermore, the higher your income, the more opportunity you have to become wealthy faster.
Speaking of income, there is one gigantic income issue that your average earner seems to miss. While the average earner typically relies on a single stream of income, wealthy people wouldn’t dream of putting all their eggs in one basket. Grant Cardone, author of “The 10X Rule”, says that, “The really rich never depend on one flow of income but instead create a number of revenue streams.” But what does that mean?
If you want to become rich, having one income stream usually isn’t going to cut it. You need to create several sustainable income streams to really get ahead. That doesn’t mean you have to pick up a crappy retail job. Stop selling your time to make money for somebody else. Instead, use your time to make money in ways that are more passive. Start a side hustle of some kind – sell crafts on Etsy.com, buy and sell old cell phones and tablets at SellCell.com, or teach dance lessons. Start a blog or a lawn mowing business. Do something – anything- that provides value.
Once you provide value, the money will follow. You can use that money to invest in things that create more value…making you even more money. The more streams of income you can create, the better off you will be. Not only will you make additional money, but your income diversification will create more stability for your total income over the long run.
Adopt Wealth-Minded Spending Habits
But income alone does not wealthy make. (Say that five times fast.) In fact, earning a high income only gives you the opportunity to become wealthy. We already know that a lot of high earners simply spend it all due to their own lack of planning. If you earn six figures or more, but spend every penny, are you really better off?
Obviously, the answer is no. After all, even rich people can go broke. Thrifty habits like cutting coupons and turning the furnace down a few degrees aren’t going to make you a millionaire, but adopting these habits can definitely help you reach your goals faster. Here are a few habits you can work on developing if you want to become wealthy.
- Learn how to budget and pay yourself first. – Before you can gain any traction, it’s important to figure out where the money you earn now is going. Start by tracking your spending, then finish the job by implementing a zero-sum budget. Budgeting is a great way to track your income and spending while also allowing you to make adjustments if needed. As a bonus, tracking your spending will often make you far more aware of any problem areas you may have.
- Live below your means. – Contrary to popular belief, most wealthy people did not actually inherit their money. They created and earned their own wealth by taking a chance and starting a new business and growing it over time, all while developing frugal habits in the process. Even Warren Buffet famously lives in a modest house and frequents his local Dairy Queen, which he now owns. If you’ve got it, you don’t need to flaunt it. Learn to live below your means.
- Adopt an attitude of abundance. – Most of the wealthy people I know love to hear about others success because they know how hard it is to achieve. That is one reason that successful people enjoy hanging around other successful people. They know that there is plenty of room, and money, for everyone. Attitudes are catchy. Adopting an attitude of abundance creates an attitude of success.
How to Be Fabulously Rich for the Long Haul
Learning how to generate income and cultivate healthy spending habits will help you become and stay wealthy. If you want to know more about how we’ve created our own wealth, check out “The 5 Financial Habits that Changed My Life.”
Now, adopt an attitude of abundance and share this valuable information on social media with your friends!
What habits are going to help you become and stay fabulously rich? Do you focus more in income or frugality?