1. Change the Way You Think About Money
The vast majority of people never accumulate a substantial nest egg because they don’t understand the nature of money or how it works.
The bigger principle here is that capital, like a person, is a living thing.
When you wake up in the morning and go to work, you are selling a product – yourself (or more specifically, your labor). When you realize that every morning your assets wake up and have the same potential to work as you do, you unlock a powerful key in your life. Each dollar you save is like an employee. Over the course of time, the goal is to make your employees work hard, and eventually, they will make enough money to hire more workers (cash). When you have become truly successful, you no longer have to sell your own labor, but can live off of the labor of your assets.
2. Develop an Understanding of the Power of Small Amounts
The biggest mistake most people make when trying to figure out how to get wealthy is that they think they have to start with an entire Napoleon-like army of funds at their disposal. They suffer from the “not enough” mentality.
There are numerous stories of individuals who started with very little money. Do not despise the day of small beginnings!
3. With Each Dollar You Save, You Are Buying Yourself Freedom
Money has the ability to work in your place, the more of it you employ, the faster and larger it has a chance to grow. Along with more money comes more freedom. If you have any source of income, it is possible for you to start building wealth today. It may only be $5 or $10 at a time, but each of those investments is a stone in the foundation of your financial freedom.
4. You Are Responsible for Where You Are in Your Life
A friend once told me he didn’t want to invest in stocks because he “didn’t want to wait ten years to be rich…” he would rather enjoy his money now. The folly with this type of thinking is that the odds are, you are going to be alive in ten years. The question is whether or not you will be better off when you arrive there. Where you are right now is the sum total of the decisions you have made in the past. Your life reflects how you spend your time and your money. Those two inputs are your destiny.
5. Consider Becoming an Owner of Things You Understand or Use
Rich men and women have a habit of using a disproportionate percentage of their income to acquire productive assets that cause their friends, family members, colleagues, and fellow citizens to constantly shovel money into their pockets.
I started with little and eventually made a decision to make finances a priority and began to acquire ownership of productive assets. It was a matter of priorities. By respecting every dollar that flowed through my hands, and making a conscious, informed decision about how I wanted to put it to work, the miracle of compounding did the heavy lifting.
When you understand this, you understand that in societies such as the United States where the trend for several centuries has been lower and lower rates of millionaires and billionaires being made up of first-generation, self-made rich, building wealth are often the by-product of behavioral patterns that are conducive to building wealth. It’s basic mathematics. Replicate the behavior and net worth tends to accumulate.
6. Study and Admire Success and Those Who Have Achieved It… Then Emulate It
Success and wealth beget success and wealth. You have to purchase your way into that cycle, and you do so by building your army one soldier at a time and putting your money to work for you.
7. Realize that More Money is Not the Answer
More money is not going to solve your problem. Money is a magnifying glass; it will accelerate and bring to light your true habits. If you are not capable of handling a job paying $18,000 a year, the worst possible thing that could happen to you is for you to earn six figures. It would destroy you.
8. Unless Your Parents Were Wealthy, Don’t Do What They Did
If your parents were not living the life you want to live then don’t do what they did!
Make saving and investing a priority in your life; one technique is to pay yourself first.
9. Don’t Worry
The miracle of life is that it doesn’t matter so much where you are, it matters where you are going. Every dollar that passes through your hands is a seed to your financial future. Rest assured, if you are diligent and responsible, financial prosperity is an inevitability.