Being wealthy is something many people aspire to but few achieve it in their life. Although, now more than ever there are Millionaires and Billionaires popping up all over the World. It seems impossible for an average individual to even think they’ll achieve this much money and that is where we go wrong, from the very beginning. We are conditioned to spend what we have (and don’t have) on meaningless possessions that mean nothing and will do nothing for our desire to become wealthy.

So how does one build wealth without founding the next Amazon or Microsoft? Do we need to build a funky new app? Maybe start a company that builds robots? Many of us aren’t tech savvy and won’t come up with the next Angry Birds or Alexa, however, there is still light at the end of the tunnel. It won’t happen overnight but we can all build wealth, here’s how.

Take control of your emotions
By far and away this is one of the most important factor in building wealth. Money and shiny objects have a way of making us lose our minds. When we buy something, we buy with emotion, ever wonder why car salesmen ask you to take a drive in that new car? Well it definitely isn’t to see if you like it or not! Very few of us will not like a brand new car, we will have some idea of what the car is like beforehand, the test drive is there to appeal to the 6 year old inside of us all. Buying with your head rather than your heart would yield extremely different results, buying an asset is boring, buying a Ferrari is not. We all want that luxury lifestyle but you have to sacrifice in the beginning to be able to get there.

Gaining control of your emotions means you’ll be able to make level headed decisions, you’ll only buy consumables you need and not indulge in luxuries that you cannot afford. There is nothing wrong with delaying that gratification, in fact it is one of the factors that will determine your success. I can guarantee you buying those heels, car, watch will just become a destructive habit, you’ll get bored and want the next best thing sooner rather than later, in that time, whatever it is you bought will have lost value. It is the time we live in.

 

Set saving goals and stick to them

Take a number, be it 5% or 10% of your monthly income. Don’t try to put it aside, make it happen, if 5% is too high, make it lower. Everyone can start somewhere, buy cheaper toilet roll, don’t eat out, cancel the TV subscription. There are always cutbacks you can make and regardless of the size of your disposable income, when you’re trying to build wealth you should cut back wherever you can as this will be the place you find extra money without getting extra income.

 

Get your goals written down with a daily to do list to achieve them

Whatever your goals are, write them down. Studies show (source below) that 76% of goals are accomplished if goals are written down with action commitments while being held accountable by a friend. Other research (source below) shows that 67% of the wealthy put their goals into writing and around 81% of the wealthy maintain a daily to do list. A to do list may not sound significant but it helps you focus on what really matters and get control of your day. It also stops procrastination, this is the most common habit of the people that find it hard to build wealth because it wastes time, time is money and in my opinion by far the most valuable commodity we have.

 

Understand the value of time and use it wisely

Time is so so valuable, I really can’t say this enough. The wealthy use their time to their advantage, they don’t watch as much TV and spend their time reading books. If you want to build wealth you should spend your spare time studying it, studying the different ways you can accumulate and spend less time doing things that have no positive impact on your life. We all love a bit of Netflix but this will do nothing for you in the long run.

Corley, the man behind the research on to-do lists states that watching TV is a poverty habit, I can understand that, it wastes time and as mentioned before, time is very valuable. Use your spare time to educate yourself, even if it’s not books on finance it will still help push you in the right direction.

 

Save to invest, don’t save to save

This is quite a simple concept but is an alien concept to many people, have an emergency fund, 3-6 months salary if possible and put money aside to invest in something, be it property, stocks, bonds or a business. Wealthy people can invest more money as they have more disposable income but they also invest a bigger percentage than the less affluent, meaning they live within their means better than lower to middle class.

 

We all have the ability to build wealth but it takes time and you must sacrifice in the present to enjoy life 10-15 years down the line. It all boils down to how important it is to you, it should be extremely important, with cost of living going up and salaries not keeping up, even stagnating in certain sectors! These days it is close to impossible to retire on a box standard pension, you need to think about the future and it’s never too late to start.

 

Start building your wealth today, even if you only have pocket change to start with, everyone has to start somewhere. Save, invest and repeat. GSY

 

Sources

http://www.goalband.co.uk/uploads/1/0/6/5/10653372/strategies_for_achieving_goals_gail_matthews_dominican_university_of_california.pdf

http://www.lbushcolejr-pd.info/uploads/9/8/1/5/9815519/a_peek_at_to-do_lists_of_the_wealthy.pdf