You don’t build wealth by making lots of money or getting the highest investment returns. You don’t build wealth by getting 1% on your savings instead of .03%. You don’t build wealth by taking excessive risks. You build wealth by changing your behavior and managing your money properly. Those other things help but don’t put the cart before the horse.
You cannot keep doing the same things you have been doing and expect a different result. That’s insanity. Whether Einstein said that or not is debatable, but if you keep handling your financial life a certain way and expect different results, you can’t be thinking with a rational mind. If you are living paycheck to paycheck and want to stop living that way, but if you keep making the same financial decisions, are you really expecting a different result?
Changing Your Behavior
Building wealth starts with changing your behavior so that you can have different results. If you’re married, you and your spouse need to be working together. If you want to stop living paycheck to paycheck do what other people do who don’t live paycheck to paycheck. If you want to be debt free do what others have done to become debt free. Do you want to live like most of America—paycheck to paycheck with debt payments that won’t go away? Then do what they do: they don’t have a plan, and they spend all their money.
If you want to build wealth, don’t keep doing what poor people do. You cannot build wealth by spending all your income every month. You do not build wealth by spending money that you don’t have. Stop taking advice from other broke people. If you make a hundred thousand dollars a year and are broke, it’s because you keep doing things that other broke people do.
Start doing what wealthy people do. They budget, get rid of their debt, and save and invest. Wealthy people don’t live for the weekend. They plan much further than that. Rich people don’t use payday lenders. They don’t spend above their means and rely on debt. What makes you wealthy is managing your money properly.
Managing Your Money Properly
If you’re single, the good news is that you only need to change yourself, as opposed to having a spouse that also needs to change. Whether you are single or married, you won’t change until you are sick and tired of living the way you are living right now. If you are ok with living with your debt, if you are ok with keeping the payday lender’s contact info around just in case, if you are ok with keeping your credit card around just in case of an emergency…you aren’t ready to live within your means. When you are not ready to stop being broke you won’t start managing your money properly.
Managing your money properly starts with having a plan for your money as I state over and over. Get on a budget so that you are intentional with your money. Stop living for the weekend and start living for the future. Start living well below your means so that you have available money to pay off your debt and save. Get rid of your debt so that your income can go towards building wealth. Learn to live for more than just buying things.
Living for Your Future
You do not build wealth by working hard all week just to spend your money on the weekend. When you are always working for the weekend, you are never planning for your future. If you want to stay broke, then keep working for the weekend. Even when the weekend comes, you will keep dreading Monday. It will be a continuous cycle for you until you decide to break it. You need to know that it’s possible to be debt free, build wealth, and be part of the upper class!
To live for your future, start with having some goals. Don’t wait until the next January to set goals! Financial goals are good to have, but there are seven important areas of your life that you need to take care of. It’s not all about the money.
If you are following a bad plan, you have to make a lot of money in order to compensate for your bad plan. Now is a good time to get on a plan that works. Change your behavior and start managing your money properly so that you can build wealth.