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10 Steps Everyone Must Take To Get Rich

These moves will be your foundation for establishing positive financial habits that will move you closer toward your goal.

Andrew Medal

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The millennial generation is at the point now where they’re starting to think hard about how to build long-term wealth for themselves.

When I was young, I was really bad with money, but now I’ve learned that when it comes to building personal wealth, often the best strategies are the simple habits that, when properly implemented, end up paying off big in the end.

The challenge, of course, is that financial responsibility is not always easy when bills are piling up and you feel as though you don’t have the ability to save. But part of building wealth is learning to discipline your spending habits so that you are always operating in the positive – instead of racking up debt.

If building true wealth for yourself is something you’re interested in, these 10 steps will be your foundation for establishing positive financial habits that will move you closer toward your goal.

1Never operate at a loss

The most simple step toward building wealth that people struggle with is spending less than they make. It might seem ridiculous, but it’s the truth – many people spend more than they make and float the difference on credit cards.

They assume they will make more in the future and that it will all “even itself out,” when in reality, the moment they start making more money, the more they spend.

The bad habit stays, and they continuously operate at a loss.

Related: 15 Ways To Save Now So You’re Rich Later

2Place a tax on yourself

If the government suddenly increased taxes and forced you to pay an extra $100 each month, you’d find a way to pay it. You would have to. Yet when it comes to saving money, people constantly find ways to rationalise their inability to sock away $100 each month.

Set up an automatic bank transfer so that as soon as you receive your paycheck, a small portion of it immediately goes into your savings account. You should pretend it doesn’t even exist. And a few years from now, you’ll thank yourself.

3Open an IRA account (to accumulate interest tax free)

IRA account

One of the best things a young person can do is open an IRA account, which can double as either a primary or secondary savings account. The intention here, however, is that money is not touched until much later in life.

If you withdraw from it before the age of 65 you are penalised. The bonus, though, is that your money in an IRA account can grow tax free, which compounded over three or four decades ends up being a lot of money.

4Don’t play the stock market

Unless your day job is trader, don’t try to time the stock market. Don’t think you’re smarter than the stock market. Don’t think you know which stocks are going to do well and which ones are going to do poorly. To think that you can do casually what some people make their entire careers is naive and reckless. At best, it’s gambling.

Instead, invest a portion of your money that you’re willing to lose in companies you like and want to hold on to for years to come. It’s best if you make these decisions with a financial advisor, and even better if you purchase these long-term options inside your IRA account. That way, your gains remain tax-free.

Related: 4 Steps People Who Weren’t Born Rich Can Take To Get Rich

5Build a side hustle

Even the world’s most successful entrepreneurs have side hustles. According to Warren Buffet, the average millionaire has seven sources of income. Having multiple income streams is just part of the process.

The best thing you can do is figure out what you can provide or offer people that delivers true value. A perfect example is internet famous entrepreneur Sam Ovens, who has made millions selling online courses and consulting business owners.

“The big lesson I learned is that you have to sell something that the market actually wants,” he told The Epoch Times. Simple, but that’s how it should be.

Bonus: If you can refrain from spending your side hustle money and save it instead, you’re in remarkable shape.

6Always pay off your credit cards

pay off your credit cards

No matter how entrepreneurial you are, maxing out your credit cards without reliable streams of income to pay them off in a timely manner is irresponsible.

You always want to make financial decisions based on what you’re currently making, not what you think you’re going to make. Wait until you’ve got the money in the door before you go reinvest or spend it. Otherwise, you’ll find yourself drowning in interest payments.

7Set financial goals at the start of each quarter and year

When you have a goal, you tend to be more responsible with your money. It’s when you don’t have a goal that it’s much easier to rationalise spontaneous purchases.

At the start of each year, set a big goal for yourself and then break that goal down into three-month increments (quarters) so that you can check on your progress as you go along. These smaller goals are what help the larger one seem more attainable, and will give you a sense as to whether you’re on the right track along the way.

8Follow the 50-30-20 rule

Summarised in a great article by Nerdwallet, many financial experts suggest that 50 percent of your income should be spent on needs (such as housing, car payments, food, etc.), 30 percent should be spent on what you want (clothes, nice dinners, etc.) and the remaining 20 percent should be saved.

Especially when you’re young, you’re most likely going to operate closer to 70-20-10, living off 70 percent of your income, spending 20 and saving 10. If you can even follow that, you’re in good shape. But your goal should be to work toward following the 50-30-20 rule.

Related: 6 Reasons Your Business Won’t Make You Rich

9Surround yourself with financially responsible people

Nothing breeds financial success like hanging out with people who have already attained it. This means finding people older than you that you can learn from and also making sure that your group of friends is comprised of people who share similar financial goals.

It can be difficult to adhere to financial disciplines when you’re spending time with spontaneous spenders.

A great way to learn about the art of finances is to find a family friend who can mentor you throughout the process – someone who has achieved their own financial success. If you show an earnest interest in learning how to build the same for yourself, chances are someone will be happy to help. A willingness to learn goes a long way.

10Judge yourself over the year, not the month

While it is important to keep a tab on how you’re doing month to month, it’s far more important to judge success over longer periods of time. A year is a good indication of your financial practices. Some months might not be great (things happen), others might be wonderful.

But what’s important is that, come the end of the year, you saved at least 10 percent of your income. Otherwise, if nothing is being saved, how do you expect to build true wealth for yourself?

This article was originally posted here on Entrepreneur.com.

Andrew Medal is the founder and CEO of creative agency Agent Beta, which fuses together clever and creative design with advanced technology to help companies and brands thrive. He recently published his first book, Hacking the Valley. Follow his personal blog at AndrewMedal.com where you'll find life advice, inspiration and entertainment.

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Personal Finance

7 Steps To Achieve Financial Freedom

Achieving financial freedom doesn’t necessarily mean becoming filthy rich – not that that hurts.

Brian Tracy

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In this video, Entrepreneur Network partner Brian Tracy explains the seven steps you need to take to achieve financial freedom. Now, financial freedom doesn’t mean becoming filthy rich – lottery winners go bankrupt all the time. Instead, financial freedom is about becoming disciplined and using your money in a way that ensures you can live the sort of life you want both now and in the future.

Related: 5 Qualities Of Successful Entrepreneurs

That’s why the first step isn’t about getting a lot of money. Instead, it’s about teaching yourself to think positively about money. That way, you’ll be in the right mindset to move forward.

Click play to learn more.

This article was originally posted here on Entrepreneur.com.

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Personal Finance

4 Ways To Become A Millionaire Even When You Start With Little

It costs nothing to take advantage of the limitless opportunities online.

Timothy Sykes

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The hardest part of becoming successful is getting started to begin with. But despite the challenges ahead of you, there’s a way to become a millionaire when starting with little. I’m going to show you four reasons why you can become a millionaire with just a small investment.

1First focus on learning, not big gain

Education is your greatest weapon. Focus on learning in the beginning. Don’t make the mistake of focusing on making huge gains in the beginning. Learn everything you can because this is how you build the foundations for long-term gains.

They say that if a millionaire goes bankrupt they’ll nearly always be able to get it back. And that’s because they might have lost their money, but they have the knowledge of how to get back to where they need to be.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

2You can learn loads about any topic online

online-learning

I’m grateful for the internet. It’s the single biggest library in the world. You’re reading this article right now and you’re acquiring knowledge you wouldn’t have been able to acquire 40 years ago. Use the internet to its fullest extent, whether that’s through reading books, browsing articles or watching video tutorials.

Set some time aside every day to learn something online. It could be a video series or a favorite blog. When you get into the habit of learning regularly you’ll find that you advance much faster.

3Focus on the niche you love

These days you can learn about anything and target the niche you’re passionate about. This is what I was able to do with penny stocks. I found a gap in the market and provided knowledge to people who wouldn’t have otherwise being able to access this sort of information.

You can do that with absolutely any niche. When you find a niche you’re passionate about and you use the reach of the Internet you start to make huge gains.

4Prove your expertise by creating free content

Your reputation as an authority is the new business card. There’s a reason I created a penny stock guide and made it free for all. You may have already seen ads for it on social media. The way to succeed with little is to create a reputation through your content.

It’s the gateway to success because through free content you start to build relationships with others who value your work. And from there everyone gets richer.

Related: How To Become A Millionaire, Explained In 1 Minute

You can do lots with a little

The days when you needed a huge investment to become successful are long gone. These days you can do so much with just a little. Find what you love, advance your knowledge in that area, and create a product that fulfills a need. Finally, work on building up relationships through portraying yourself as an authority on your subject.

Combine everything together and you can accomplish anything.

This article was originally posted here on Entrepreneur.com.

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Personal Finance

12 Millionaire Habits To Start Making Serious Money Soon And Build Wealth In A Hurry

Get-rich-quick schemes rarely work but doing the right things every day rarely fails.

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There’s a mindset that’s prevalent these days. It’s one of instant gratification in an on-demand society that looks for quick results with very little effort. Entrepreneurs know that life doesn’t work that way. You need to put in the sweat equity if you’re looking to gain serious results.

When it comes to making money, certain good habits push us forward while some bad habits deter us from getting rich or even making any semblance of serious money.

Clearly, many people are making money and some are making lots, but if they mismanage it and pilfer it away on mindless pursuits, building the proverbial empire is going to be far harder.

Making money is one thing, but creating wealth is an entirely different thing. Obviously, most people can quickly make an extra $100 by selling used items or doing a small gig on a site like Fiverr, but if you’re looking for the kind of cash that can make a significant difference in your life, embrace these 12 millionaire habits. They are sure to drive you in the right direction. You’ll find ways to create real wealth by beckoning financial opportunity and potential windfalls through a positive mindset and a sound emotional, spiritual and mental state. That is quite literally the most powerful mixture of habits that exists for entrepreneurs.

1Always add value

Value makes the world go round. Everyone wants to get value out of an exchange. The most successful entrepreneurs in the world know that if you’re going to make lots of money, then you need to always be adding value. Always seek to add more value to whatever services, information or products you’re selling.

Related: 13 Habits Of Self-Made Millionaires You Could Adopt Today

2Wake up early

The early morning hours are replete with quiet solitude. It’s when you can refine your thoughts and implement your plans before all the distractions of the day. If you are constantly dealing with interruptions throughout your day, find your happy place in the morning. Wake up early so you can plan whatever will advance you toward your goals.

3Exercise

exercise-good-life

Making money isn’t just about implementing good career or business habits. You need to be fit emotionally and physically to fire on all pistons. Exercise in the morning, even if briefly. Exercising gets the blood flowing and oxygenation to the cells, helping you to think clearly and be laser-focused. This habit is implemented by some of the world’s richest entrepreneurs.

4Daily goal setting

You have your long-term goals in place but, if you’re looking to make serious money and quickly, you have to set goals every single day. These are milestones on your way to your biggest and most outlandish goals. Do this when you wake up, first thing in the morning, so that you stay on track and on target. Decide what will move you closer to those financial goals by the end of the day, then go out there and do it.

5Effective time management

Everyone in this world has the same amount of time. The 24 hours of each day is life’s greatest equaliser. It doesn’t matter what we do, where we’re from or how much money we have, we all have the same amount of time.

Effective time management is a must for those looking to get ahead. Whether your goal is to earn a lot of money over time or you just need to earn a little bit of extra cash quickly, properly managing your finite time is what makes it possible to succeed.

Related: 4 Bad Money Habits That Have Left Millionaires Broke

6Networking

Networking is one of the most important habits to have in life. The sayings go, your network is your net worth, and if you lie down with dogs, you’ll definitely come up with fleas. Reach out to others and find out what you can do to add value to their world.

Don’t ask for anything in return, especially not right away. Just insert yourself into the mix, and eventually the opportunities will find you.

7Innercising

John Assaraf

John Assaraf

John Assaraf, who built up a billion-dollar real estate business and is featured in the movie The Secret, preaches the importance of “innercising” in his NeuroGym system. Innercising is mental exercise to reprogram subliminal conditioning deeply embedded in our subconscious. The goal is to frame the mind with a positive financial outlook which attracts money and opportunities to our lives, rather than pushing them away.

8Healthy diet

Will eating healthier help you to attract more wealth or make more money in the interim? You can bet it will. Sound body, sound mind. To have the precision thinking and focus of a highly-trained athlete, you need to eat healthily. Our bodies spend a large amount of their energy on processing foods. Unhealthy eating leaves us with less energy for achieving our goals, whatever they are.

9Saving and investing

Obviously, saving and investing is fundamental to building wealth. It won’t happen as fast as you’d like, but the larger component at play is having moment-of-the-opportunity cash to invest when something requires your attention immediately. When you have capital and are no longer living paycheck-to-paycheck, you’re ready to earn more money when the opportunity presents.

Related: 20 Habits Holding Me Back From Being A Millionaire

10Mindfulness

If you play a cutthroat game and walk all over people, few opportunities will come your way. Being mindful and respectful of others attracts opportunities that you can eventually convert into cash. Be mindful about how you act and what you say so it doesn’t come back to bite you in the butt.

11Work with a mentor

Mentors are great for helping you to earn extra income, whether small or large. A mentor who’s achieved outlandish goals in your industry will offer guidance to help you get where you’re looking to go.

Find a mentor and work with them daily. Ask for their help and guidance as you navigate the choppy waters towards success.

12Contribute to others

Contribution is born from an abundant mindset. When you are sated and have enough for yourself, look to contribute. You can trick your mind into an abundant mindset by simply contributing your time to others. You don’t have to give money. Only time. It’s a subconscious mind trick that moves you away from scarcity to attract more money and opportunities into your life.

This article was originally posted here on Entrepreneur.com.

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