When someone says they want to “strike it rich,” they often mean with a once-in-a-lifetime event. Think, a lucky investment, winning the lottery, or selling an idea on Shark Tank that catapults them into the pantheon of millionairehood.
While it’s not impossible to get wealthy off a one-shot, the truth is that most “new money” millionaires didn’t get lucky. Instead, they built their wealth with smart financial planning, expert advice, financial literacy and goal setting.
And if that’s news to you, you’re far from alone. While the rich aren’t sitting on some big, unknown money secret, they don’t often go out of their way to educate the masses.
But we do.
Without further ado, here are the 14 secrets that the wealthy don’t want you to know about money – and how you can make them work for you.
1. Setting goals is the secret to getting started.
“Wealth” is a subjective term. If you’re living on $25,000 a year, then $1 million and an LA mansion may seem incredibly wealthy. But if you’re living in LA on $1 million a year, then wealthy probably looks more like $100 million and a garage full of expensive cars.
This discrepancy in perception and values are part of why it’s important to determine what “wealth” means to you – and then set goals to get there. For instance, you may decide you want to change careers, start a family or become a millionaire by 35. Then, it’s about devising an action plan with annual achievements to make your to-dos been-dones.
2. Always align your spending with your goals.
As you’re building wealth (and after), keep your spending in line with your goals. Know what you care about, be it attaining a lifestyle, achieving feats or passing on wealth. Then, take care to avoid wasting resources on things and activities that have no value to you – and invest heartily in education, hobbies, passions and goals that do.
Whether that’s forgoing restaurants while you take night classes or skipping the new car to buy a rental property, spending money on the things that advance your goals pays off in the long run.
3. A solid savings strategy bolsters success.
A savings strategy buffers your finances and increases your liquidity. While the goal is to save 15-20% of your income every month, beginning with just 1% is better than nothing! </…….