Want to grow your wealth? Of course you do! We’ve lined up a list of the 10 things wealth builders do every month. And they won’t cost you a cent.
Successful wealth builders….
1. Spend time on their finances
You spend +40 hours a week at work earning money. How much time do you spend managing it? Successful wealth builders spend time on their money every week, including:
- Budgeting: tracking income and spending, and balancing budgets
- Financial goals: setting and reviewing goals and making sure they are on track to meet them
- Savings and investments: are these delivering the returns you need to achieve your financial goals?
Start building this habit by committing just 30 minutes a week to your finances.
Wealth builders focus on staying relevant in the job market! They take courses to improve their skills and are always looking for an opportunity to learn new skills. When you upskill you can negotiate increases and promotions and move on to better job opportunities - which means more money to build wealth and save!
You can also use new skills to start a side hustle or small business, which is a great way to earn extra money.
3. Diversify their income
Successful wealth builders earn an income, and another, and another - at the same time! Not only does having more than one regular income mean more money, it also ensures that if one income stream falls away, there are other sources of income to fall back on.
4. Meet with their money buddy
Many successful wealth builders have a money buddy who supports and encourages them and holds them accountable for their money choices. If you are struggling to stick to your budget and goals, why not get a money buddy?
5. Stay up to date on financial affairs
Wealth builders spend time learning about money and staying up to date on financial news. They listen to podcasts on financial topics and finance programmes on radio. They also follow financial gurus and industry leaders on social media, and read articles on financial websites. By reading this blog, you’re learning more about personal finance. Continue reading and learning about finances and you’ll become a better wealth builder!
6. Live within their means
Yes! Wealth builders spend less than they earn, so they can invest in wealth building opportunities such as side hustles and investments such as unit trusts. Living within your means also includes shopping around for the best deals and buying second hand to save money. Spend less than you earn and you’ll have more to invest. End of story.
7. Think long term
Wealth builders think long term when making money decisions and consider the best way to spend their money to grow wealth. For example, buying a new pair of designer sunglasses will cost R2 000 today, but in five years they won’t be worth that. However, spending that R2 000 on a course or investing it will mean your income and wealth grows! Wealth builders take the long-term view and avoid the short-term expensive buys!
Never swipe your card or enter your pin without weighing up long-term options!
8. Pay themselves first
Wealth builders prioritise their financial goals so they are paid each month, for example putting R250 a month into an investment account. This is how wealth is built – it is prioritised and seen as an essential budget item. Make sure your budget includes a payment to yourself – even if it is just a small amount!
9. Don’t dip into long-term savings
There are times when it is absolutely necessary to use savings, but keeping savings and investments intact gives them more time to grow – which means more money to grow wealth!
10. Use debt to grow wealth
Successful wealth builders don’t avoid debt, they use debt to build wealth, specifically good debt like home, business or student loans. So cut up the credit cards and learn how to use good debt to grow your wealth.
That didn’t cost anything!
Building wealth is about a lot more than just building a bank balance, it requires a wealth building mindset. Armed with these tips we know you’re ready to start your wealth building journey, today!