What Will Make You Rich - And What's Holding You Back
If you’ve ever wondered why you just can’t seem to get richer, you may want to take a step back and examine the daily habits in your life. The solution could be something as small as a mindless task you take advantage of every day!
Here are habits that you are most likely doing that are preventing you from increasing your net worth - along with habits you can start incorporating to set yourself on the path to wealth.
What Isn’t Making You Rich
Microtransactions and Subscriptions
Netflix. Spotify. Amazon. Skillshare. Gym memberships. Do any of these sound familiar to you? When was the last time you used these products? Do you still find value in them? If not, it’s time to ditch them.
On average, a person in the US can save up to $500/year by cutting back on monthly or yearly subscriptions. Chances are, you may not even know you’re still paying monthly for a service you haven’t used in years! Take the time to comb through your bank account for recurring transactions. If any make you ask, “What the heck is this?”, it’s time to cancel.
Another practical way to begin accumulating more wealth is to reign in any bad spending habits you may have. If you find yourself buying because of an emotional reason, or feel that if you ever have cash in your pocket you just have to get rid of it, now’s a good time to reassess your spending habits. Find your triggers that cause impulsive purchases and nip them in the bud before they can cause any problems again.
Complaining too much
Accumulating wealth isn’t just a matter of spending less or saving more. You also have to be sure to have the right mindset. As long as you’re complaining about not having money, you’re putting the signal out into the world that you don’t have money and you won’t have money. Studies have shown that rich people do not complain as much as poorer people - they’re more likely to own up to mistakes, try new things, and aren’t as afraid to fail. By complaining, you’re setting yourself roadblocks on paths that could lead you to more money. Negativity never reaps anything.
Surrounding yourself with the wrong people
There’s a saying that goes, “The 5 closest people in your life are a reflection of yourself.” Like attracts like, which means we naturally tend to gravitate towards those who are similar to us, be in in lifestyle, careers, or habits. When it comes to money habits, this can be detrimental if your 5 closest people are all poor, not managing their money well, or negative. Try to find people that you want to be like or can look up to and incorporate them into your life.
What Will Make You Rich
If you had an unexpected emergency happen today, could you cover the cost? Studies show that 69% of Americans do not have enough in their savings to cover $1,000 of an emergency cost. When you prioritize your savings, not only are you paying yourself first, but you’re also ensuring that should an emergency come up, you won’t have to dip into credit and set yourself back even further.
Paying down debt
The more debt you pay down, the higher your net worth becomes. You’ll never be able to build riches if you always have that lingering loan number in the back of your mind. Plus - the longer you take to pay it off, the more you will have to pay off because of interest, so you’re setting yourself up for an endless cycle of owing money.
Start paying off any debt as soon as you can - and make sure you’re doing it in a way that you won’t be putting yourself in a bind for the rest of your monthly expenses. The last thing you want to do while paying debt is to take out another loan to cover other costs.
Thinking outside the box
When was the last time you flexed your creative muscle? Studies have proven that rich people tend to be more creative thinkers; they aren’t afraid to try new methods to make more money. You can practice creative thinking as soon as today by viewing a situation at work from a different angle; the more you work on your creativity, the easier it will be to think of new solutions that might very well earn you a pay raise.
Having a financial mentor
Similar to surrounding yourself with like-minded people, consider finding a mentor for your financial journey. Many people learn best by following example; find someone who is in the financial place you want to be in. They can help you with any questions you may have, and you have someone to visualize whenever you’re about to make a decision regarding money. Think of them as the “What would Jesus do?” of finances.
Another way to help build your finances is to see an advisor. We at Milborn Advisors are committed to helping you on every step of your financial journey - we want to see your wealth grow as much as you want to experience it. Contact us today for a free 60-minute consultation!