One of the secrets to wealth building is that it’s not about a ‘once off event’ – the “buy a Tatslotto” ticket and wake up rich approach.
That’s a fantasy for most people.
it’s all about the habits you develop and practice each day.
So Voila! Here are five proven money-making habits to help make you richer faster.
Habit #1 – Automate Your Payments
Why would we talk about your debts when you’re looking to get rich?
It’s simple. Getting real with your net money situation is the first step to getting where you want to go.
David Bach, a self-made millionaire, says in his book The Automatic Millionaire.
Automating your debt payments mean they go out of your account straight away.
You get a better picture of how much money you actually have – and can manage your savings accordingly.
Habit #2 – Set a Real Goal
“I want to be a billionaire.”
That sounds like a good goal. But it’s well outside of the realms of realistic possibility for most people.
Keeping things realistic is a better way to build wealth.
The University of Arizona’s Lisa Ordóñez agrees.
She says: “You don’t want goals that are so aggressive that you’ll lose steam.”
You need a light at the end of the tunnel. After all, you’ll stop running if you can’t see the end in sight.
And, then you’ll never get rich. Set an achievable goal for the next 90 days, 12 months and 2 years – and go from there.
Then review your progress each week.
Habit #3 – Make Financial Decisions on Good Days
We all have those days where we don’t feel like interacting with the rest of the world.
Those are the worst days for you to make decisions about your money.
A study published in the Journal of Consumer Research found that people make better decisions when they feel comfortable.
Unhappiness makes you uncomfortable. That means you should save the financial decisions until you’re in a better frame of mind.
Habit #4 – Create an Income Projection
Do you know how much money you’re likely to have in the future?
If you don’t, you might not save as effectively. That’s according to a study in the Journal of Public Economics.
People who can see a projection now of how much money they will actually have in their retirement, are more likely to take smart actions now to improve their situation.
The challenge is most people tell themselves ‘she’ll be right’ – when it won’t. Then, they don’t take action. Big mistake.
Habit #5 – Pay Off Small Debts First
Dave Ramsey the personal finance expert, calls this habit the “snowball effect”.
The idea is that you pay off your smallest debts first.
That helps you to build momentum – a psychological boost – that you can take into clearing your bigger debts.
The momentum keeps building until you clear all of your debts. After that, you’re able to make more money.
The Key to Building Wealth
All these things are useful, however without building a strong asset base, you will never be truly wealthy.
Robert Kiyosaki suggests the best sort of assets are ‘cash-producing ones’ – i.e assets that put money in your pocket each year.
A great example of that is Commercial Real Estate.
That’s because it’s possible to get a positive cash flow of up to $400 per week from a $450,000 property.
That’s net-cashflow in your pocket after expenses, and loan repayments.
You can find out more at this free event in your city.