Wealth isn’t meant for a certain group of people. Steve Siebold, the author of How Rich People Think, has interviewed many rich people and the common denominator that he has found to be true is for you to start thinking like a rich person. All the rich people he interviewed said that once they started thinking like a rich person, the money started to flow and this can be true for you starting now. This shows you that wealth is attainable and available for everyone, as long as you set your mind in the right direction. Another common way they built their wealth is by reading investing books for beginners.
There are some common practices that will help you build your wealth so that you can have it later in life. These are listed below.
Generating More Income Streams
Most rich people focus on earning and constantly finding ways to honestly increase their earnings. As a result, they find multiple sources of income across various industries. Relying on a single source of income usually results in unexpected challenges and financial blocks if that single source of income fails.
Sixty-five percent of rich people who were interviewed by Thomas C. Corley for his multi-year study of self-made millionaires reported having a minimum of three streams of income such as real estate, side hustles, or part-time jobs. They ensure that they are constantly building and diversifying their earning portfolio by pursuing industries that they are passionate about.
Like Minds Flock Together
Wealthy people always stress that you are the company you keep. If you want to succeed at something, you have to surround yourself with people who value what you want and share your passion. This goes for anything, especially wealth. When you look around you, what are the views of the people you surround yourself with the most with regards to wealth?
Are they passionate about wealth? Do they have a positive attitude about attaining wealth? We really become like the people we associate with which is why you should associate with like-minded individuals who are passionate about being wealthy.
If you can, join a professional group where you will find highly motivated people who will help keep you on track and focused on your goals.
Save Your Money to Invest
Investments will increase your overall net worth. Investments provide you with a passive income that will increase your overall net worth. Learning how much and where to properly invest your money will make it easier for you to quickly attain your goals. Most millionaires invest at least 20% of their household income every year across a diverse portfolio which they divide into long-term and short-term gains. Long-term investments are typically stocks or bonds. Short-term investments are usually real-estate and small businesses.
Learn a New Skill
Building wealth is about forming good habits and being knowledgeable. You will need to know a wide array of subjects to properly invest your money and you can accomplish this through a dedicated self-improvement practice. You can learn new skills by reading about the topic, joining a class, local networking and online groups are some of the best ways to learn a new skill.
Being able to pursue things outside your comfort zone expands your knowledge, grows your confidence, and also helps you learn how to discern, helping you make the best decisions.
Show Up Not Off
It’s easy to want to buy nicer things once your money starts flowing, but you have to remember that you don’t pay for the cost of the purchase but the amount it takes to keep the item. Most millionaires are known for still driving their Toyota Camry even when the money is flowing. This philosophy is shared by billionaire Warren Buffet who never spends more than $3.17 on a breakfast sandwich.
This doesn’t mean you can’t improve your standards of living, it simply means that you have to ensure that your sources of income are secure before you start splurging and that you can afford to maintain and keep your purchase.
Always Think Big
Building wealth requires that you set your expectations higher than everyone else. This might be challenging but you will only get what you expect, so you might as well have higher expectations. Steve Siebold says people who have successfully acquired wealth share that they had big expectations and did not compromise.