Wealth Building Habits for The Little Guy

By: Tom Chatham

Regardless of how much you earn it is always possible to save and build wealth little by little until it amounts to something substantial. Most people are in a hurry for everything. They want it right now and that mentality makes it impossible to deploy a long term plan to get where they want to be.

There are those that suddenly get rich but they are not typical of the average guy. The average guy needs a plan to get where they want to be and that plan will rely on certain habits to build wealth. The more money you save and the more wealth you build up, the more opportunities that will open up to you.

With the current economic situation threatening to get worse before it gets better it is even more important now to start utilizing some good habits that will help you . Good financial habits will help you get to the other side of any financial crisis in better shape than those around you. These habits will also allow you to see the long term picture and take advantage of opportunities that come about even in bad times.

Develop a stream of income- This is typically your primary income but it should also encompass any opportunities you come across that can increase your net worth. It can be a reoccurring payment or an occasional boost from opportunities that present themselves on occasion.

Increase ownership of productive real assets- You need to save for the future and that savings should be in real assets that will always be worth something regardless of the economy. It may be gold, silver, diamonds or real estate such as good farmland. These assets should also include ventures that produce a positive cash flow.

Save/invest some of what you make- You must save some of what you make regardless of how little that is. If you make $5,000 a week and spend $5,000 a week you are not wealthy just a highly paid broke person unless some of that money is going into fully owned real assets.

Invest in productive education- All education is not created equal. If you plan to go into debt to get a degree make sure it is necessary. Education in the medical or engineering field will likely pay for itself but going deep into debt to get a liberal arts degree may be a waste of time and money unless you already have a job waiting for you.

Read as much as possible- Reading is one of the most overlooked habits that people never think about. Most people today hate to read and that reduces their chances of identifying opportunities or solving problems. The more you read the larger your data base will be for solving problems or being creative in making money.

Don’t lose money- This seems like a no brainer but most people don’t really think about it. Making money is easy compared to holding onto it for the duration. If you are frugal but turn around and invest money in poorly thought out schemes or loan it to someone that won’t pay it back you have not accomplished anything.

Learn to read people- The failure to read peoples true intentions can cost you everything. There is always someone out there that wishes to separate you from your wealth and it is your job to prevent that from happening.

Building wealth takes time and work. To succeed everything must work properly. One bad habit can ruin all of your hard work and prevent you from reaching your planned goals. It takes planning, execution and willpower to keep it all together.

There is a saying that you can give a poor person a million dollars and they will just end up poor but you can take a million dollars from a rich person and they will just go out and make another million. I actually know a guy that inherited 50 million dollars and about 5 years later he was broke and had nothing to show for all of that wealth. Poor habits make you poor and rich habits make you wealthy.

There is another saying that if you hang out with poor people you learn how to be poor and if you hang out with rich people you learn how to be rich. This is all about learning certain habits regarding wealth and how to handle money. We learn throughout life and what we learn determines how well we do.

By learning good habits to building wealth, the average person can build an empire over time. It does not matter what your ultimate goal is. You can only achieve it if you exercise a certain amount of control over what you do. Learning what works and what does not is the key to unlocking your future wealth.

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Posted on January 10, 2016, in Commentary, Economics and tagged , , . Bookmark the permalink. 4 Comments.

  1. Another good tip: Invest by buying in bulk and large quantities. Many folks do this when buying food, but do it for what your household uses the most of. Example? Lightbulbs. Keep track of how many you use in a year, then calculate how many you’ll need in 5, 10, 15 or 20+ years (depending on how much you want to spend). Create an area in your house as your “store” and put all your bulk items there. Buying in bulk for the long term can save you hundreds of dollars per item, and you won’t be paying the higher, inflated prices as they rise each year. Add up the savings over 30-40 years and the return is WAY better than most stock index funds! I first learned about this in a book called “The Alpha Strategy.”

  2. A well written article, much of which is common sense that is lacking in our culture today. Slow and steady plodding is the key.

    Just an additional note on gold, silver and diamonds. For gold and silver, one should only buy low premium, self-autheticating bullion. Do NOT get caught up in the dealer “confiscation myth” and overpay for numismatics or antique coins. These should ONLY be bought for collecting purposes.

    Regarding diamonds, synthetic diamonds are becoming increasingly common in the supply chain, and are well made and often difficult to detect. Only buy diamonds with a GIA or EGL certificate for authentication. You will need the certificate for solid resale. FYI- the diamond market is extremely soft right now.

  3. Doing for yourself in ANY area is a guaranteed winner. Build your own house (we’ve built both the current and previous). Repair your vehicles/appliances/etc. Grow your own food. Not only do you gain a huge advantage of reduced interest on mortgages and credit cards, you avoid the income taxes you didn’t have to pay to earn the money to pay somebody else to do the job !

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