Many people live in a scarcity mindset, believing that they will never have the money to do the things that they want to do in life. They think that winning big in a financial sense is something that’s way outside of their capability.
But all of this is psychological. It doesn’t actually reflect reality. Most people get rich slowly. But, you need money wins.
In fact, they don’t always realize it’s happening. One day, they wake up with a million dollars in their portfolio and suddenly it dawns on them that they really do have some wealth behind them.
Big money things are, ironically, the little things that you do. It’s all about your attitude and your ability to execute. That’s what sets you apart.
Get Paid Your Worth
Wherever you go for a job, it’s important to make sure that you’re getting paid what you’re worth. If you’re paid too much, then your job will be insecure and you could get fired. If you’re paid too little, you’re adding way more value to your boss than you are to yourself.
What you want is a balance. You want to get paid enough to reflect your contribution while resisting the urge to call for ever higher wage rates that don’t really line up with the value that you bring.
Save In Retirement Accounts
There are two types of retirement accounts: those where you pay the tax now and then don’t pay any in the future, and those where you don’t pay any tax now, but defer it to the future. Both have pluses and minuses.
The important factor is that you invest in one or the other. Failing to do so could mean that you’ll pay more tax than you need in the future.
Invest Your Windfalls
Occasionally in life, you’ll receive financial windfalls. For instance, a personal injury attorney might win you a large sum of money in a court case, or you could get a large sum of inheritance from a relative.
In these situations, it can be tempting to splurge it all and have a great time. However, windfalls are an opportunity to dramatically boost your wealth. For instance, you might be able to invest in an asset that doubles in value over the next five years. This way, you can improve your financial security and independence even more.
Pay Off Credit Card Debt
At the end of the month, it can be tempting to allow your credit card debt to roll over. After all, the whole point of a credit limit is to give you money so that you have more resources now.
It’s a bad habit, though. Most credit card companies charge double-digit annual rates of interest that can really leave you on the back foot. If you allow debts to roll over, then it can affect your ability to repay them, and you could find yourself massively out of pocket.
Building wealth isn’t something that happens overnight. It takes time. But once you get the process going to the point where it is self-sustaining, it can have a massive impact on your quality of life.