It is quite a commonality that people blame their life and its circumstances as the reason behind them not being as wealthy as they wish to be. As a fact, as much as your circumstances and luck do play a tangible role, the significant part is actually laid down by your habits. Turning wealthy is not a one-time game or one decision made right, but a long journey walked with tenacity. The quantum of wealth that you accumulate ultimately boils down to your daily habits, how well you break the bad ones and how quickly and consistently you manage to cultivate and nurture the good ones.
Here are some surprisingly simple hacks that can help you turn wealthy without hitting a masterstroke as a savvy investor.
1. Introspect About Your Financial Goals
As vanilla as this may sound, you can’t really achieve anything without having a good level of clarity about what exactly you desire. As a fact, the wealthiest are most often clear about what they want.
In order to attain such clarity, the easiest step you can follow is to pen your goals for annual income and your net worth. This exercise should be realistic, but you must always try to set your limits and challenge yourself. That’s because making it big always starts with thinking big.
2. Stop Procrastinating and Start Saving and Investing
If you have clarity about where you want to reach, you need to start. Most people miss out on turning wealthy because they don’t even start out or delay it for a later time. Real wealth building, in essence, is a long-term process and works on the principle of compounding. Every penny saved and invested grows over the long term, which is why, no matter what your income may be, it’s important to start.
If you feel you don’t have enough money at the moment, you can start out with budgeting and analysing your expenditures and figure out the right places you can cut corners. Alternatively, you can make it a policy to save and not spend the unexpected cash such as your bonus, birthday checks or any windfall gains. It’s every small bit that makes a difference. To start with, you can begin investing in a wealth investment plan (ULIPs) in the fund of your choice, equity, debt or balanced. Moreover, these wealth investment plans are the best option for goal-based investing.
3. Enable Auto-Debit for Payments and Investments
Automating the finances is one step that never fails in helping to follow the path of financial wisdom. If you turn on the automatic debiting of money to your investment accounts, savings and creditors, it goes into your wealth building pool effortlessly. Doing so cuts out the part where you have to resist temptations of spending or actually have the option to give into them.
Moreover, it frees up the cognitive load of having the task of making your payments or investing. The extra time then can be channelised into something productive and meaningful instead.
4. Make It A Point to Be Consistent
No matter what you do, it’s pertinent that you’re consistent in your efforts. Starting out is one important part but staying at it over a good extended period is what ultimately makes a big difference.
Whether it is about listing and acting upon your goals, meaningfully saving, or regularly analysing your investments, it is very important to do so regularly.
A small thing like telling yourself you deserve to be wealthy every single day can go a long way in turning all your actions towards it.
5. Surround Yourself with The Right Company
You might find this point to be vague in the list, but your actions and who you are is a sum of the people you interact with the most. If you spend your time and energy with the financially wise, you’ll pick up their good habits and mirror that.
If your peers are reading books on personal finance regularly and discussing, being a part of such a group will encourage you to develop your knowledge in that direction and also help you take back meaningful scoops from your discussions. On the other hand, if you only hang out with the people who straight hit the bar after work, you’re less likely to invest and grow wealthy and instead only spend what you should be saving.
Remember, good decisions usually are not an epiphany. They come with cultivating the right mindset, habits and actions. Turning wealthy doesn’t just mean picking up a stock that gives you phenomenal returns, but how well you micromanage and positively channelise the small elements over the long term.