In the process of establishing the new, wealth building habits you will also have to remove some well established, bad money habits. You may feel some resistance from these habits initially but if you want to live well in your retirement years then you have to get your priorities in order, put your ego to one side, and do what is required for financial success.
Place More Value on Money and Wealth
People who don't have enough money, either have the habit of placing too little value on money or they place the wrong value on money. Listen to the things you say about money, both to yourself and to others, and ask what value you are placing on achieving wealth.
Everything you say and everything you think has some influence on your subconscious mind and as a result has some influence on the habits you form, the things you attempt in life, and the type of results that you produce.
If you are saying or thinking things that place little value on acquiring wealth then the message to your subconscious is that you do not want to be wealthy. The more often you say or thing these ideas the stronger you reinforce that subconscious programming.
If you have this bad habit then start catching yourself whenever you do it and develop the habit of thinking and saying things that place a high value on acquiring personal wealth.
Allocate Your Investing Money First
One habit that wealthy people have is that they allocate money to investing before they allocate their living budget. In other words they make investing a priority.
People who don't become wealthy often have the intention to invest but they allocate money to their living expenses first and invest what is left. However there is a major problem with this way of thinking; there is never any money left to invest.
If you make your lifestyle the number one priority then it will always expand enough to consume all of your money. If you make investing your priority then you will always find a way to live on the rest. If you doubt this then image what would happen if you go a 25% pay cut. You wouldn't die. You would find a way to live on your new salary.
Remove Money Wasting
One way to free up money for investing is to remove all waste spending. Statistics show that most people spend 20% to 25% of their income on unnecessary expenditure that doesn't really enhance their life. If you identify and remove such spending then you will be able to invest 25% of your income and still live well.
Know Where Your Money Is Going
One good habit that almost all self made rich have is that they record where every cent of their money goes. Most of them actually write it down as they spend it. By knowing where their money is going they can see whether they are getting value or not. In other words they can see if their spending is enhancing the quality of their life in the long term as well as the short term.
Leverage Your Earning Potential
Most people who are not wealthy have the habit of accepting their income. People who become wealthy have the habit of regularly looking for ways to increase their income.
Why does on person earn $30,000 a year and another earn $300,000 dollars per year? It all comes down to the habits they have developed around working. If you are not as wealthy as you want to be then put some time aside every day to brainstorm ways to increase your income.
Formal education trains you to be a worker; a cog in the wheel. Part of that conditioning is that you do a certain job and you get paid a certain salary. The reality is very different. You can take your skill set and find ways to leverage it into 5 times or 10 times the income that you earn now. Spend some time every day asking yourself how to do this and you might be surprised at what you come up with.
If you are serious about becoming wealthy then make a serious promise to yourself to develop the five good habits outlined above.
Over the years, I have read as many books about money management as I could lay my hands on. A lot of them had the right answers but I could only follow them for a short time before people fell back into their old bad habits. I now know that what these books did not explain was the natural sequence of events to follow.
To have more money, we need to understand the various stages of personal finance and become proactive in managing these stages. This means to commit to a positive course of action and being prepared to devote a certain level of effort and time to it.
I have since found that this procedure represents the natural stages of growth and learning. In the beginning, you need to focus on planning and research to discover what is needed. Then you have to tackle problems and develop plans to overcome them and to prevent them from occurring again. After that, you need to apply discipline and repetition to ensure that strong foundations are built.
For a while, you will experience a period of stability. Problems diminish. Things become easier. Then, if you have been doing everything right, all of a sudden, things will start to go very, very well. Success, at last! Well, not quite. You still need to pull in the reins at this stage and learn how to handle this new level of accomplishment. True success will only be yours when you have learnt how to sustain it without losing ground.
Each stage is defined with certain strategies to apply at each stage. The stages are designed to build upon each other, creating a strong foundation. Progression through the stages will gradually iron out bad habits and spending patterns. You may need to spend a little longer in some stages than others.
It is not a get-rich-quick scheme but it will give you greater confidence and security even in the earlier stages when money may be in short supply.
The greatest enemy of money management is impatience, however I have seen miraculous changes in my clients even after a few months or weeks. Good things will start to happen. Your luck will seem to change. You will start to make better decisions, whether consciously or not.
Both James Delrojo & Ann Marosy are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
James Delrojo has sinced written about articles on various topics from Outsourcing, Self Improvement and Motivation and Health. YOU can be successful in all areas of your life!Acclaimed Author & Success Coach, James Delrojowill show you how to turn your life around in just 30 daysand unlock the flood gates of success. You Deserve Success!Go to. James Delrojo's top article generates over 60500 views. to your Favourites.
Ann Marosy has sinced written about articles on various topics from Personal Finance, Medicine and Personal Finance. Ann Marosy is an accountant, consultant, and former university lecturer. She was formally a Financial Controller of a Fortune 500 Company, and Finalist of SA Executive Woman of the Year. Ann is the author of 'The Money Program' book series, which includes. Ann Marosy's top article generates over 5400 views. to your Favourites.