How to building wealth? | Everything you need to know about building wealth
1. Avoid Lifestyle Creep
Never allow lifestyle creep to eat away at your wealth.
As you earn more money, save more money.
You will be tempted to spend more money because you can, but don’t allow your mind to trick you.
Control your expenses before they control you.
2. Pay Yourself First
The average millionaire saves and invests about 64% of their income.
Never live bigger than your paycheck.
Don’t consume, instead, use your paycheck to invest for your future.
Live like an undercover millionaire today to be a millionaire tomorrow.
3. Adopt Healthy Financial Habits
It takes about 66 days for a new behavior to become an automatic habit.
Stick to a productive daily routine to build healthy financial habits.
When you build healthy financial habits, you will struggle less in life.
4. Grow Your Network
A degree is good but your network is better.
One of the greatest indicators of your future success is determined by the people who know you and trust you.
Build and maintain meaningful relationships as early as possible.
Your network is your net worth.
5. Avoid Bad Debt
Getting out of debt is:
– 20% knowledge
– 80% a change in habit
Changing your financial habits include:
– Earning more
– Spending less
– Investing more
To live debt-free, you may have to adopt a lean life.
6. Build an Emergency Fund
63% of Americans cannot afford a $500 emergency.
That means the average American would have to resort to high-interest credit card debt to pay for surprise expenses.
Do your future self a favor and save 3 to 6 months’ worth of living expenses.
7. Don’t Drive Away Your Wealth
Most luxury cars lose about 60% of their value after 5 years.
Millionaires don’t invest in depreciating assets like new cars.
Instead, many millionaires buy used cars and invest their money in appreciating assets like stocks or real estate.
8. Prioritize Your Health
76% of millionaires exercise for at least 30 minutes daily.
Never take your health for granted.
Sticking to an exercise routine and a healthy diet is key.
Remember that you cannot enjoy your wealth if you have bad health.
9. Read More Books
85% of millionaires read books for 30 minutes or more daily.
Books give you a chance to learn from and think like the greatest minds that have walked this earth.
If you want to succeed, you have to read.
10. Use Money to Make Money
Albert Einstein once said:
“Compound interest is the eighth wonder of the world.”
Don’t work for your money, make your money work for you.
Allow compound interest to build your wealth.
11. Create Multiple Streams of Income
If you’ve ever heard of the saying:
“Don’t put your eggs in 1 basket.”
Then you know that you shouldn’t rely on just 1 income source.
Start building multiple income streams today.