Ten years ago, when I started the process of seriously growing wealth, I never thought in my wildest dreams that I'd be writing an article like this...nevertheless here I am writing it. What follows are some of the best lessons that I've learned in reaching my goal of becoming a millionaire.
Saving more money is the more important than making more money
This is going to shock you but the single most important contributing factor to obtaining wealth at such an early age is the decision to save and invest 50% of our household income. You might be screaming...how is it possible to live off of only 50%?! It isn't easy but I think that it is just as difficult if not more so to live without any significant savings. We shop at Target $TGT, Walmart $WMT, and Kohl's $KSS. I mow my own lawn, clean my own modest home and drive old hand-me-down cars from my parents. My wife and I both work and we jog around the park instead of paying for a gym if we want exercise. There are countless examples but the main idea among all of them revolves around getting the most bang for your buck. When you have to spend make sure that you are always getting every bit of value that you can and living off of 50% starts to become possible.
Making a lot of money takes a lot of patience
I think to myself every once in awhile, would I rather have a 10% chance at creating wealth quickly or a 90% chance at creating wealth slowly. You have to develop the patience to wait for your investments to grow properly and this happens over years and decades not days or even months. Take the time to read, learn and think about how to properly diversify your assets, position your investments over the longer term and use time to your advantage. Like they say in real estate, location, location, location...with investing it's patience, patience, patience.
Set money goals that challenge yourself
Believe it or not, if you want to be wealthy you actually have to like investing money more than you like spending it. One of the ways to train yourself to enjoy the process of growing money is to set realistic money challenges for yourself and then make those challenges more and more difficult over time as you begin reaching them. For instance, now that I'm a millionaire do I want to go out and blow a bunch of money on a new Lexus? No, I feel much better creating a new challenge of becoming a multi-millionaire.
Rediscover who you are
The path that I have taken towards financial success is not necessarily going to be the best path for someone else. It is extremely important to align your method for creating wealth with who you naturally are as a person. Think back to when you were a child...what types of things or situations did you gravitate towards or shy away from...were you conservative or aggressive? Chances are that who you were back then is the same person that you are today and if you work with yourself instead of against yourself you'll find it so much easier to achieve the kind success that you've always wanted.
Education is a must
Getting a decent education allows you the opportunity to land a decent paying job that you can work hard at. Once you have that job it becomes all about how much you can optimize your lifestyle to save and invest as much money as possible. Balance is the key here...you don't want to over do it and burn out and you don't want to under do it and never reach financial success. Keep an open mind, be ready to learn from your mistakes and think creatively about how to underspend without feeling overburdened.
The bottom line is that building wealth is all about spending more on things that rise in value and less on things that fall in value. Dedicate yourself to this process and you’ll be giving yourself an excellent chance at becoming wealthy at some point in the future.
Read Next: Lifestyle
Read Next: Lifestyle