Let me guess…
You want to become rich. At the least, you want to stop worrying about your finances. The sad reality is that 80% of Americans carry some type of debt.
So how can you reach financial success despite these scary statistics? By practicing what’s worked for most Millionaires.
Most already know how to become rich, but don’t have the discipline to do so. It’s as if they’re waiting to find the secret formula for building wealth. I know I did at one point.
But, these past few years I’ve read dozens of books and learned from successful people. And because of this, I’m now heading in a better path than before.
Building wealth isn’t as sexy as most make it seem, but it’s attainable. If you’re willing to work your ass off, then reaching financial success is inevitable.
Here are 10 proven strategies you can use to help you the financial success you desire.
Before chasing the rich life, it’s important that you define what being rich means to you. Most people want to be millionaires but don’t have a budget. Even worse, they aren’t saving enough to ever reach half a million.
But, what’s the difference between the rich and the wealthy? The wealthy can live off their income for years, while the rich can only do so for a fraction of this time. The key difference is that only one group is able to master their finances.
So why choose between the two? Because one lives a happier life.
Most wealthy people continue to work not because they have to but because they want to. And, the rich work because they have to maintain their luxurious lifestyle.
The trick is to have a specific income to strive for. And you can achieve this by calculating your freedom-number. This number is the amount of money required to maintain your ideal lifestyle.
To calculate your freedom number start by totaling your average monthly expenses. An easy way to know your expenses is by using tools like Personal Capital. Once you know your monthly expenses, multiply them by 12.
This calculates the annual income you’ll need to maintain your current lifestyle. You can always change your freedom number as you see fit, but you’ll no longer blindly chase the millions.
Like the wealthy, you’ve now set a financial goal. Stay focused and work hard to reach this number.
To become wealthy you need to build courage.
Thomas Stanley, author of the “Millionaire Mind” surveyed hundreds of wealthy millionaires. Through his research, he discovered that most self-made millionaires had courage.
“Without fear, there cannot be courage.” -Christopher Paolini
The truth is you’re always going to fear something. Whether it’s starting your own business or investing in the stock market. But, you have to find the courage to take action regardless.
Have a purpose bigger than yourself. In other words, don’t do strive to become wealthy only for the money. Instead, take some time to brainstorm on the benefits more wealth will bring to your life.
Then, write these goals down. For example, one goal may include being able can spend more time with your family.
It’s also important to fill your mind with positivity. For example, read motivational blogs daily and avoid watching the news on TV. Since the news tends to show more negative events, use apps like theSkimm to stay up-to-date.
Here are some blogs to follow:
It won’t happen overnight, but you’ll build more courage and have a more positive outlook on your life.
Out of all the investments you can make, you’re your best investment.
Because the moment you gain new skills you’ll be able to grow your money at a faster rate. Wealthy people like Bill Gates attribute a big part of their success to reading. Reading provides you with new insights and tests your understanding.
Reading is only one medium to grow. Here are other ways you can invest yourself:
“In this world, you’re either growing or you’re dying, so get in motion and grow.” –Lou Holtz
Most people stop learning after they graduate school. But, the wealthy understand learning is a life-long process.
Who knew that falling in love with the right partner increased your odds at building wealth?
There’s no guarantee that finding the right partner will lead you to build wealth. But, according to a study done by Thomas Stanley, the odds are in your favor.
Take, for example, one of Thomas’s acquaintances who bought a boat for $23,000. What made this sale different was that this couple used their dividend earnings to pay for the boat.
Unlike average couples, this couple had many wealth-building habits. Some of these habits included studying investment opportunities and planning long-term financial goals.
There’s no perfect formula for finding the perfect partner. But, you can use good judgments to determine your compatibility together. Here are some qualities the wealthy attributed to an ideal spouse
Don’t underestimate the power of a great spouse. Yet, don’t only look for a partner who has wealth-building habits. Find a partner that has the right balance for you, and can support you in your wealth-building journey
No one has reached success alone.
There are many people who’ve contributed a big part of their success in receiving help from a mentor. Take, for example, Mark Zuckerberg, who considered Steve Jobs as his mentor. He now has a net worth of over 60 billion, and arguably the creator of the most popular social platform we know today.
While most people aren’t trying to become billionaires, the principles stay the same. You need to learn from others to become successful and avoid common mistakes.
The problem is trying to reach success on your own. And while it’s still possible to reach success this way, it will take much longer. Instead, find mentors who are at the level you’d like to be.
How? Search for mentors in your workplace, meetups, and even online. Instead of asking people to be your mentor, show them you’re interested. Do your homework and determine how you could bring value to them first.
Stop searching for the next big investment opportunity. Instead, take advantage of the opportunities already available to you.
Most people assume that you need to invest millions to make millions. But, this is far from the truth.
Take Thomas Stanley’s example, where a couple invested $5,000 in a rundown, full-service car wash. Most people would look at this investment and assume that it’s not worthwhile. Yet, it was a wise investment because this couple later sold this business for $750,000.
Practical investments are where most people run into trouble. Not because it’s complicated, but because it isn’t sexy. No one wants to brag about a rundown business they’ve acquired. Yet, these businesses have the potential to turn you into a millionaire.
Ego is your enemy. The journey to building wealth is a long one, but you’re your worst enemy. Keep an open mind and learn to see the opportunities most people miss.
If you can’t manage your current income, what makes you think you’ll be able to manage larger wealth?
There are countless stories of people who’ve won the lottery only to lose it all. It wasn’t because they were unlucky, it’s because they weren’t able to manage their money.
Start with the basics.
For example, understand your cash flow and create a budget. Focus on eliminating all your debt and save money to be able to invest in assets. This will take time since you’ll be breaking many bad habits.
But, here are some ideas to help you get started:
Building wealth is a process that requires building good money habits.
This means spending more of your money on assets instead of liabilities. Assets include real estate, stocks, businesses, and yourself. While liabilities include cars, houses, expensive clothes, etc.
Get your wealth-building habits up to be able to maintain the wealth you’ll one day build.
The wealthy know how to sell. And that means you need to know as well.
Most people assume that because they hate sales they don’t need to learn how to sell. But, this type of mentality is what’s holding people back from building massive wealth.
Think about it, selling involves persuading someone to invest in what you have to offer. Selling isn’t only limited to products, it also involves your ideas and your dreams. It requires exceptional social skills and is what separates leaders from followers.
Take Thomas’s example, where he was invited to speak at a seminar for a national sale’s manager.
Knowing his friend Billy was great at selling, he’d asked him for help. With limited details, Billy had custom tailored jeans delivered to the manager’s wife. The manager praised Thomas for the blue jeans and ended up wanting more seminars from him.
Being able to sell has opened many doors for the wealthy, and it can do the same for you too.
The wealthiest people interviewed from “The Millionaire Mind” were business owners.
I get it, not everyone was born to be an entrepreneur. But, it’s still wise to have a side-hustle despite loving your current job.
Because you’re rewarded with the harder you work. Whether you work in corporate or in retail, the process is similar. You have to outperform your goals and let managers know that you deserve a promotion.
The problem with this approach is that is that someone else determines the outcome. Often times people don’t get the raise they deserve. But, having a side-hustle will allow you to earn extra income the harder you work.
Here are some ideas to help you get started. If you’re finding that you’re low in time, focus on improving your schedule. Many before you were able to build successful businesses despite having a full-time job, and so can you.
Most of the wealthy have discipline.
A case study showed that 60% of wealthy millionaires never received an inheritance. In other words, they’d started from 0 and were able to build massive wealth. And because building their wealth didn’t happen overnight, the wealthy had patience.
The truth is building wealth won’t be easy.
After all, if it was wouldn’t everyone be wealthy? But, here’s why this is good news for you. You’ll become a better person in your wealth-building journey.
You’ll choose better investments, build better habits, and know more ways to make money. Instead of anxiously waiting to become wealthy, love the process.
Imagine not having to worry about your finances again.
It wasn’t easy but you’ve finally become wealthy. You feel rich, but not the rich most people think about. It’s the rich you’ve defined to live life on your terms. And, you’re now using money as a tool to bring happiness to your life.
The truth is you’re capable of achieving anything you set your mind to. Yes, we all face unique obstacles but we don’t have to let them control our lives.
Take Gary Vaynerchuk, for example, who built a $100 million dollar business. Despite coming from an immigrant family he was able to become successful. And this is only one example of the hundreds out there.
The time has come for you to start becoming the best version of yourself.
Walk with me on this journey to achieving financial success. Remember it’s not about the money, but who we’ll become in our journey. Fall in love with the process and discover what type of wealth you’ll be able to achieve…
Chris writes personal finance and productivity articles for software companies. He gets fresh ideas through continuously investing in himself and interviewing successful entrepreneurs.