You may be familiar with the expression money does not make you happy, but most of us would agree that having great amounts of money surely does make life easier. However, this is not easy and it can be a long journey, particularly when you do not come from wealth and do not have the support of rich parents. The key factor of the self-made millionaires is their motivation, determination, and hard work they put into their journey. This will make the difference between being rich and wishing it.
Everyone wants to be rich, some wish it every single day, but not everyone is willing to actually put in the work that is necessary to achieve such a goal. It does not matter at what age you are starting this journey, it is never too late, as long as you are determined. In this article, we will provide you with five habits You Need To Develop If You Want To Aim To Be Rich Before Turning 50.
Check Your Mindset
If you want to be rich, the very first thing you need to do is check your mindset. Yes, we already know you want money, but are you willing to do what it takes to get there? As we mentioned before, everyone wants to be rich, so how come not everybody achieves this? The main reason is that people adopt a negative attitude and decide that if they do not see results quickly and become rich overnight, then they quickly give up. Creating wealth does not happen overnight unless you win the lottery, so have patience and make sure that you are in the right frame of mind to start this journey.
Devise a Financial Plan
Being rich may be the main goal, but you need to develop an actual plan on how to get there. Unfortunately, it takes more than wishing it. If you want it to happen, coming up with smart objectives will help your journey and it will also help you see the progress that you are making. For example, some goals can be to find a new job, to put a set amount of money into your savings each week or month, as well as for deciding exactly what kind of life you want to have by the age of 50. Doing this will make your journey more real and motivate you to stay on track.
Increase Your Financial Literacy
We all go to school and learn maths and English and even sexual education, but no one ever talks to us about real-life problems when we become an adult and how to manage our finances. We pretty much have to learn this ourselves, and for some, it means large amounts of debts, inability to cope financially, and over-relying on friends and family. If you want to be rich, you need to have a good understanding of money and a good relationship with it. There are ways you can improve your financial literacy skills – you can read specialized books or visit here for expert blogs, which will support you to develop the skills required to understand and make money. If you do not have a good understanding and relationship with money, it can bring you more problems than solutions.
A habit that many rich people have is their ability to be frugal. You may assume that rich people will automatically be wearing designer clothes on a daily basis and going out spending large amounts of money. But this is actually not true, real self-made millionaires get to this point because they are careful where they spend their money. Be minimalistic about where you spend your money and only purchase what you need. Do not try to keep up with fashion trends and other people as this may make your journey very difficult.
Less Liabilities, More Assets
When you finally have money, your first instinct may be to spend money on liabilities such as buying an expensive car or expensive clothes. Truthfully, this is not a smart choice as these items depreciate in value. This means that you will not be able to sell them for the same price and it may actually increase your debt. Expensive cars, for example, are expensive to maintain, there’s more to it than the actual price of the car. As part of your financial literacy study, you should learn the differences between assets and liabilities. Assets are things such as properties, which you know can be a great source of income and will most likely increase in value.
Making money is indeed a long journey, but definitely not impossible. If you want to be rich, be motivated, and determined to achieve this, no matter how difficult it gets. Follow some of the habits discussed above, which will greatly help you towards financial freedom before turning 50.
Samantha Acuna is a writer based in San Francisco, CA. Her work has been featured in The Huffington Post, Entrepreneur.com, and Yahoo Small Business.