Your ability to build wealth does not just depend on your current situation, but heavily depends on your behaviors. Researchers at DataPoints looked at the habits of the affluent and found certain traits to be key to building wealth. [1]
Some of those “wealth-building” behaviors were:
- Be frugal and live below your means.
This may seem obvious but many Americans struggle with debt – at all income levels. Many of the affluent surveyed not only lived well below their means, but they also saved more than 20% of their income. Of course, this is easier the more you make, but living frugally can help anyone looking to reduce debt and increase wealth.
- Believe financial independence is more important than social status.
The millionaires surveyed also were more likely to not drive luxury cars or wear expensive clothes because they value building wealth more than showing off. Being indifferent to the spending habits of others will take you far in your journey to save money.
- Responsibility for your financial outcome and the confidence to go after it.
Believing you have control over your financial situation improves your chances for building wealth. Allocate your time, energy and money in ways that are effective in building wealth. The basics of planning and saving work when put into practice!
- Planning, monitoring and focus
Are you able to set financial goals for yourself? Do you have a budget? How about following through with monitoring your progress? This is where partnering with a financial professional can help keep you accountable to your plan and help you stay on track.
CONTACT US today to see how you are progressing towards your wealth-building goals.
[1] https://www.kitces.com/blog/datapoints-building-wealth-assessments-sarah-fallaw-thomas-stanley-millionaire-next-door-book/