A huge question that’s rarely answered with clarity is… how to reach financial goals? Sometimes your current financial situation may make you feel hopeless or that your goals are too far away. I totally understand as a former overwhelmed and overworked hair stylist who has built a significant income from scratch. I have discovered that many people are not aware of several strategies they can use to move faster and more efficiently with wealth building efforts. There are no guarantees in life, business, but you can greatly increase the odds in your favor with smart money moves, intelligent decisions and a commitment to consistent result driven behavior.
These factors have and continue to create success for people who really want it and are ready to release excuses. I am referring to strategies that have helped people build wealth from all walks of life. So, there is no doubt in my mind that a person can be broke today and change their circumstances drastically within a short period of time. If that person is you I want to help you get started by sharing some truths about people who become rich.
Here’s 7 things rich people do that most others don’t:
1. Have multiple streams of income. One of the most important aspects of becoming wealthy is the avoidance of financial disasters, such as losing a job or your finances suffering because of economic conditions. It can literally take years to replace the emergency savings you might spend in just a couple of months with a sudden loss of income. The more sources of income you have, the more financial security you’ll enjoy. Having 7-8 streams of income is recommended. The key to this is not having to labor for every stream 1-2 active and the rest passive streams are best. After all you only get 24 hours a day and you can’t work all of them if you intend on having a life.
2. Set and pursue financial goals. While getting rich (making a lot of money) is a great goal. Becoming wealthy (keeping more of the money you make) should be the ultimate and end goal. While a few people luck their way into wealth, setting goals will dictate what you do with your money as you make it. Your financial goals are there to guide your spending habits and decisions. Do something to pursue that goal each and every day and over time those days become years of financial commitment you can be proud of.
3. Manage and measure your money. Budgeting your money is one of the smartest moves you can make if you want to get rich. Truth is many more people can become millionaires if they would not only manage their money but track and allocate money so it is used for the highest and best. Budgeting will help you understand the right timing to make certain purchases and when to refrain from buying as well. A good budget is realistic and doesn’t necessarily restrict you from having a life while building your desired lifestyle. However, it will keep you grounded with your goals.
4. Invest regularly. Real wealth is not accumulated super fast like gambling or buying a lottery ticket . It’s also not only accumulated through labor alone. If you are thinking you can get rich quickly and keep that money, your mindset alone will sabotage your opportunity of becoming rich. If you haven’t created a budget that automates savings into investments , this is a huge mistake. You are limiting your ability to build wealth. Saving at least 15% of your take home pay to earn 8-10% interest will put you ahead of the money game and beat inflation rates too. Learning about investing is something rich people normalize and so should you.
5. Become tax smart. The largest expense you will have while building wealth is not buying a new home ..it taxes. This has a huge effect on what you get to keep . Hire a CPA who is a tax planner and strategist for entrepreneurs. They will help you make the right decisions at the right time. Whether you’re purchasing a home or thinking about selling a stock, retirement and succession planning and the right types of insurance that help you build and keep wealth. I teach this to my Pink Millionaire Club. Make it your business to go to www.irs.gov to also understand what tax benefits you qualify for. As well as set up an appointment with my team to learn you can have intelligence conversations with your professional advisors.
6. Purchase luxury items from passive income vs. active income. Before making any purchase, ask yourself will this purchase increase or decrease my profits from my active income? How many purchases have you regretted in the past that set you back from your goals ? It’s normal to want nicer things than you had before you had more money. Don’t feel guilty about taking a beautiful vacation, buy a designer bag or a luxury car. Just be smart about it. Create passive streams of income from your business and let the passive streams fund your dreams. Refrain from spending your active profits which are designed to make more money so you don’t have to work until you die.
7. Invest in mentors and coaches. Unless you find a way to secure a very large income, wealth requires time, money and effort in learning. You don’t have to do anything spectacular to amass a spectacular fortune and you won’t create wealth overnight but it can happen faster, simpler and easier with a mentor. Keep your eye on the long-term outcome and implement what you learn as soon as you learn it. Another mistake I see many make is thinking they can get rich without learning from someone who’s already rich. Investing in education that’s current and effective is critical to success nowadays. You should choose a mentor who has already accomplished what you are wanting to accomplish. This cuts down on your learning curve and accelerates your prosperity path. If you have ever considered leaving a job, building a successful business or having profitable investments, mentor or coach . Without one you could be delaying your growth and gratification of success.
There are definitely more things I can share with you that the rich do but others don’t. Financially successful people have left many clues for ages for you to follow. Adopting a certain mindset will adjust your habits and grant you financial abundance. Choose a few of these strategies and begin applying them to your life. Continue this personal transformation and be persistent and consistent. Building a fortune takes time and I’m here to help. Make sure you check out pinkmillionaireclub.com to see how you can invest in knowledge and build your empire!
If you have found this article helpful please share with others and if you are not already following me on Instagram feel free to do so.