Building wealth involves the right mindset, strategy and tactics and in this article, I share a combination of all three in the five things you should start doing to build wealth.
- Spend time thinking about your money
Wealthy people spend much more time thinking about their finances than people who remain poor. The average adult spends 2-3 hours each month studying and thinking about their money, usually at bill paying time. The average self-made millionaire, by contrast, spends 20-30 hours per month thinking, studying, and planning his finances. The way I recommend you go about keeping your money in focus is to develop a financial blueprint and then set an alarm to look at it every month so you can see how you are progressing and make adjustments as required. Where focus goes, energy flows, so when you focus on your finances, you move energy towards it.
2. Get good financial advice.
Develop the habit of getting good financial advice before you do anything with your finances. Ask around and find a financial advisor who has already achieved financial independence by investing his or her personal money in the areas that he or she recommends to you. Your ability to choose excellent financial advisors can be the critical factor in making good investment decisions. Also make sure you learn as much as you can about an investment before you invest in it.
3. Be proactive and take action.
Take action to learn more about different asset classes, take action to implement what you are learning. Set time lines and milestones for yourself to remain motivated and accountable. I recommend you set a period to learn about an asset class and deep dive into it, then you can make your first investment into it. I usually have a 90-day plan before I invest in anything. I use that time to learn about it and put money aside for it and then I take action. You would only build wealth when you are taking action towards the things that would help you grow your money.
4. Build patiently and leverage compound interest.
Most wealthy people built their wealth over decades. Even though get rich quick is a popular saying, but most wealthy people got rich slower. They used the principle of compound interest, what Albert Einstein called, “The greatest power in the universe.” In full 99% of cases where people become wealthy, it is over a long period of time, and it is based on slow, incremental growth as the result of compound interest.
I have witnessed this example from My Mother investing on our platform Rouzo. She has been investing for almost three years and I have seen her investment compound and multiply over time because she always re-invests her capital and her interest hereby earning compounding interest on the previous amount invested. This reminds me of one of the habits I spoke about last week-delay gratification.
5. Find a wealth accountability partner
This could be a person or a community that holds you accountable to your wealth goals and aspirations. If you are self-motivated, you could keep yourself accountable, but I have learned overtime in running our Company Owoafara that having people who you are accountable to, puts you on your toes to perform and execute. You usually feel the pressure to make sure you are taking action and delivering because you are accountable to them. Let your accountability partners be your cheerleaders and motivators to keep you motivated to keep going.
Which of these things are you going to start doing to build wealth?
Do you want to attain financial success with ease? I offer one on one financial blue print sessions to help you create you dream financial life. Learn more: https://www.softandsuccessfulnetwork.com/financialblueprint/
If you are in Nigeria and you are looking for a reliable savings platform that offers good returns, impact and safety, try Rouzo.
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