Buy on Amazon<\/a><\/span><\/p>\n\n\n\n
\n\n\n\nThe Basic Formula<\/h2>\n\n\n\n
Everyone has an opinion on building wealth, and you’ll often encounter these quirky, ineffective “Get rich quick” schemes or stumble upon people that try to use your desire to accumulate wealth for their advantage.<\/p>\n\n\n\n
The answer has always been right there. It’s also a formula you can use to unlock the door behind that key. The first step of the formula is to earn enough money. There are many resources filled with helpful tips to earn a significant amount of money that we’ll be discussing in a minute. <\/p>\n\n\n\n
The next step is to save enough money, which is only the result of disciplined spending, budgeting, and planning. The last step is a wild variable, which involves a bit of risk-taking and taking chances on investments.<\/p>\n\n\n\n
So essentially, building wealth sounds easy in theory, but these steps and the path that lead to the key are much more difficult to follow.<\/p>\n\n\n\n
Make Money<\/h2>\n\n\n\n
To even start thinking about saving or investing. You need long-term income sources sufficient to have some amount of money left after all your necessities, bills, and debts are paid off.<\/p>\n\n\n\n
Of course, everyone wants to make the big bucks. It’s an elementary step in creating wealth, the most fundamental one. Small amounts regularly saved and compounded overtime over the years can someday add up to substantial wealth.<\/p>\n\n\n\n
But the truth is there is only so much we can cut in costs and save up. If your budget is so tightly-strung that you can’t fit an extra coin out of it, then looking for ways to increase your income should be your next mission. <\/p>\n\n\n\n
Once you find a way to obtain an additional income source, take a look at your current job. Are you skilled enough at what you’re doing, and do you genuinely enjoy it enough to be able to keep at it for the next 50 years?<\/p>\n\n\n\n
Have Multiple Sources of Income<\/h2>\n\n\n\n
Famous author and self-made millionaire Grant Cardone imply that “You won’t get rich without multiple flows of income.”<\/p>\n\n\n\n
Before Cardone started cashing in seven-figure checks, he was deep in crushing debt. So he says having several sources of income start “with the income you currently have. Increase that income and start adding multiple flows.”<\/p>\n\n\n\n
Don’t Think-Long Term<\/h2>\n\n\n\n
Don’t think long-term, at least when you’re first starting out.<\/p>\n\n\n\n
In his blog, Cardone shared his “single most important hack” he used to build. “I break down ALL of my money goals into daily goals. I still deposit money every day into my investment accounts.”<\/p>\n\n\n\n
So he started with the goal of setting aside $50 a day. Some days, he was so strapped for cash that it was only $5, but he rarely missed a day of this habit. <\/p>\n\n\n\n
Each day Cardone would try to generate as much money as possible so that he could invest it. And he did but to achieve that, he stopped thinking– and pay attention to this part– he thought every day about making that $50 threshold.<\/p>\n\n\n\n
Soon enough, that $50 started becoming his daily minimum. And it grew into depositing $70 and $70. One day, all his side hustles started finally paying off, that he was setting aside over $500 a day. One day, when he set aside $20,000, he knew that he had this thing on lockdown.<\/p>\n\n\n\n
Get Motivated for It<\/h2>\n\n\n\n
When it comes to building wealth, money is a weak motivator. It’s a shallow goal that will never drive you enough to achieve success. Your superficial, materialistic goals, such as a fat bank account, a fancy mansion, a luxury car, will limit your motivation to pursue these goals.<\/p>\n\n\n\n
It would be beneficial if you got motivated by internal goals, which go a lot deeper than what this wealth can buy you. What’s one cause that drives you deep enough to want to tackle every obstacle that stands between you and achieving enough wealth to accomplish it? <\/p>\n\n\n\n
This type of internal goals includes enjoying freedom, which means that you want to stop being shackled to that nine to five jobs to have more time for yourself to create, grow, and live life to the fullest.<\/p>\n\n\n\n
Whatever your reason is, it needs to run deep because this journey isn’t comfortable. Whenever you encounter the many obstacles that will slow your journey to wealth, that motivation will help you continue the course long enough to succeed.<\/p>\n\n\n\n
Be Disciplined<\/h2>\n\n\n\n
Remember when we said that wealth is the result of regular amounts of money and things added together and compounded over a period of time? Well, that means your habits and self-discipline can either make or break your success.<\/p>\n\n\n\n
Everything about wealth is related to discipline: saving, investing, and consistently putting in a persistent effort. Without discipline, your journey to unlocking wealth will be halted by a lock that you never expected to be a killer: procrastination.<\/p>\n\n\n\n
The fictional belief supports daily habits that wealth will magically appear without a specific plan, persistence, and the action to cause it.<\/p>\n\n\n\n
Establish Leverage<\/h2>\n\n\n\n
This one key is often overlooked and not talked about enough. The truth is you will never get wealthy alone and by doing things all by yourself. Everyone knows that genuinely wealthy people work smarter, not harder.<\/p>\n\n\n\n
On your way to achieving financial freedom, you’ll need financial leverage, which means that the amount in your bank account does not limit you. This is related to those looking to build wealth by starting businesses and startups.<\/p>\n\n\n\n
Next, you want other people to help you with your purpose so that you’re not limited to the mere 24 hours of your day.<\/p>\n\n\n\n
With the help of others, you have their smart, technology, and systems to acquire knowledge. This can translate to looking through databases, newsletters, and forums so that you’re able to communicate more. Connections with others go beyond your own, and their talents, experiences, and expertise are imperative.<\/p>\n\n\n\n
This leverage allows you to build more wealth than you could ever achieve on your own by utilizing these resources. This way, you’re not restricted by your limitations. <\/p>\n\n\n\n
This is one of the minor things that separate wealth-seekers and those who have successfully attained wealth. If you don’t use leverage, you will work way harder than you should earn less than you deserve.<\/p>\n\n\n\n
Related<\/strong>: The Fine Art of Making Smart Financial Decisions<\/a><\/span><\/p>\n\n\n\nHave Courage<\/h2>\n\n\n\n
This is the risk-taking aspect we mentioned earlier. Attaining wealth will never be within reach if you’re too afraid to grab it.<\/p>\n\n\n\n
It takes immense courage to be self-responsible from the get-go, and it takes courage to dare venture onto new paths and learn new skills<\/a>. <\/p>\n\n\n\nIt takes even more courage to stand out from the crowd– because rarely do people get wealthy following the crowd. And it takes insane amounts of courage to invest, which leads us to our next point.<\/p>\n\n\n\n
Investing Money Properly<\/h2>\n\n\n\n
By now, you’re making enough money; you have saved up enough, but you’re putting it into investments such as the regular savings account at the bank. This is like turning the key in the opposite direction! If you ever want to invest, some form of risk has to be involved.<\/p>\n\n\n\n
How much of a risk are you willing to take? To determine that, build what the pros call an “investment policy statement.” Start by determining your return and risk objectives. You’ll then list all the elements affecting your financial life, including household income, taxes, cash flow, and liquidity needs.<\/p>\n\n\n\n
Next, you need to determine the right asset allocation for you. Unless or until you know enough to cross this step on your own. Consulting a financial advisor is the best option. <\/p>\n\n\n\n
Your allocation should be based on the investment policy statement that you just finished. It will most likely include a mix of fixed income, cash, equities, and alternative investments.<\/p>\n\n\n\n
Pay Yourself First<\/h2>\n\n\n\n
According to the advice of bestselling author and self-made millionaire, David Bach, there is “one, proven, easy way to get rich,” and it’s to pay yourself first. He says, “When you earn a dollar, the first you pay is you.”<\/p>\n\n\n\n
When most people get paid, they tend to pay everyone else first and take whatever is leftover. Of course, paying yourself first doesn’t mean going on a mad shopping spree. <\/p>\n\n\n\n
Still, the key to his philosophy is to make it automatic, so whenever you get paid, have the money withdrawn from your paycheck and sent straight to your savings, retirement, or investment account. This way, you won’t be able to spend what you don’t have in your pocket.<\/p>\n\n\n\n