People become rich not by accident, here's how they become
As a financial advisor, I sometimes find myself envious of some customers. Not because of their wealth – but because they were disciplined and determined to do all the good things that have enabled them to accumulate their wealth and, in many cases, early retirement. Despite my expertise, I, as a large number of people, sometimes j´ai of evil not to do bad things that make I'm not rich.
Financially responsible persons and who are successful do not build their wealth by accident – or overnight. To become rich, you must will and a serious vision long term. You must be able to keep an eye on the price of financial freedom, be willing to sacrifice your present for the sake of your future and develop good habits to win. Here are 10 habits that you can begin to put into practice today.
- 1 Start early
- 2 Forced and automated savings
- 3 Maximize your retirement contributions
- 4 Never use credit cards
- 5 Live as if you were poor
- 6 Avoid the temptation
- 7 Be goal-oriented
- 8 Be educated
- 9 Diversify your portfolio
- 10 Spend money to make money, Warren Buffett
As the old saying: the bird that rises early catches the worm… or, in this case, gets an early retirement. The sooner you put it your money to the works, more will be the time to grow. Earn a salary, if you are self-employed your account or work for a company, refers to the ability to contribute e.g. to a retirement fund (plan d´epargne retirement in France), you must enter as soon as possible. If you have the chance to get a job with a company that offers a contribution to your retirement plan, you must make it a priority to you register as soon as you are eligible. This can make the difference between early retirement and never to retire.
Think about this: If you invested $10,000 and had left it to grow for 40 years, assuming an average annual return of 8%, you'd end up with more than $217,000. But if you waited 10 years and invested $20,000 – twice – you will end up with slightly more than $200,000.
Whatever your situation, saving and investing today is better than waiting. Begin now.
Forced and automated savings
You can be your worst enemy when it comes to financial success. It's too easy to procrastinate and neglect what needs to be done and, during this time, yield to temptation and spend more than you should. C´ is the perfect recipe for not getting rich.
The best way to protect yourself is to automate your savings. This means that implementation of transfers on a regular and recurring basis from your chequing account (c´est-IE your current account) to your accounts savings and investment (or setting up d´une automatic contribution from your salary to your retirement plan sponsored by the employer). In this way, you force yourself to avoid bad habits for your money and save what would have probably spent you over the head otherwise. If you have not already done so, set 15 minutes on your calendar right now to do so. No later than now. Your rich future will tell you thank you.
Maximize your retirement contributions
When pension contributions, you have probably said to start small and then you are going to increase the amount of at least 1% each year until you are up. If you are a procrastinator, then Yes, even a small contribution of start is better than nothing. The problem is that small efforts can lead to small results. If you want to be rich, you must give you the means. This means contribute the maximum amount allowed (and at least as much as your employer will pay in your plan).
This is especially true if you start to save later in life and you need to catch up with lost time (period of unemployment for example). You could you worry that your high contributions n´entament your income level, but it is easier to get into the habit of spending less if you don't have that extra money to spend. It is much more difficult to recover your balance after a few years.
Never use credit cards
In the revolving loan, the rate d´interet debt high and is one of the greatest threats to your financial freedom. It can seriously make you slide down, costing you thousands in unnecessary costs and interest charges – and keep you d´epargner more. If you ever want to be rich, he must abandon the bad habit d´utiliser credit credit cards.
Instead, you need to learn how to use credit wisely, rather than as a crutch, and commit yourself to pay your balance in full each month. Chip credit card holders know and practice the tricks to maximize rewards, points, discounts and monthly cash flow without getting below their balance. Of course, living within your means is the key to your success, even if this is not obvious if you more than receipts n´avez d´argent.
Live as if you were poor
Have you ever met someone who is modest, then later you have been surprised to learn that they have indeed rolled in flour? I had a former client who was stuck in 1983: he wore ugly Brown suits and sneakers, was driving a blue break Volvo and has lived in the same modest house qu´ bought it 40 years ago. He revealed that this man was a contractor to success and multi millionaire – and even richer because of their humble habits.
Millionaires are all around us, and many of them are probably not those that you think. Indeed, they live intelligently and below their means and they save their money rather than show their value. Of course, it is easy to live under your means when you have millions, but even if you have much less, make it a habit to spend a little now will help you have much later. The trick is to adopt a more "less is" mentality and stick with it, even when your income and your capital increase.
Your worst mistake
A car is absolutely not an investment, it loses a lot of value and get into debt for it is a disaster. known j´AI of the commercial who wanted big cars to better sell, but most of the time the cost is greater than the benefit, worse you end up in the rat race.
Avoid the temptation
The temptation to live at great expense is great and everything pushes you around you: TV, magazines, friends, family, co-workers. It is almost impossible to escape from the pressure to spend, spend and spend a bit more. The problem is that excessive spending often lead to the accumulation of debts, lack of fluid and financial insecurity in the long term.
Force yourself to avoid as much as possible negative financial influences. This means: avoiding the malls, unsubscribe from all emails from sale and do not register to new and say 'no' to invitations that you know will cost you. Your car being l´une of the worst things.
Then, replace these temptations with things that motivate you.
Goals inspire, motivate us and push us. Many of us have common objectives, such as the repayment of the loan, buying a home and retire at a certain age. Perhaps you have another goal as start your own business or buying a second home. Unfortunately, the objectives are easily overshadowed by the stress of everyday life and too often forgotten and neglected. When the objectives are just fleeting thoughts in your mind, they lose their meaning and their influence on your behavior. This leads to bad financial habits, and your dream of becoming rich remains just a dream.
To make it a reality, stay focused on your goals by taking the time to think about them, prioritise and allocate amounting to save allocated to each of them, if possible. Then, you must show your goals in the places where you can be reminded to l´ordre on a regular basis, which will remind you of your responsibility and help you stay on track.
Investors who take the time to study the key financial concepts, learning to do things and stand abreast of current trends. They take advantage of opportunities to strengthen and expand their understanding and expose themselves to financial information on a daily basis. Take as a benchmark their habits and subscribe to The Wall Street Journal, watch CNBC instead of a people magazine and follow financial experts on Twitter. Become a student dedicated to the knowledge of the money and you can master the science of getting rich.
Make sure do you and only follow the advice from credible sources, so as not to be victim of paralysis or inappropriate investments and potentially dangerous my see scams.
Diversify your portfolio
Investors who are successful also know not to put all their eggs in one basket. They divided their wealth through a variety of investments, stocks (shares), for mutual funds, ETFs and bonds, real estate, objects of collection and startups. A diversified portfolio means that you can potentially benefit from several sources of growth and protect you from financial ruin if one of your investments falls.
An easy way to achieve diversification is investing in a fund allocation, asset or common background (type CMV) a fund with a strategy which is based on your risk tolerance. However my experience know that your children's funds are overcautious and offers the warranty then qu´il must generally take the very dynamic. And if you do not have the means to buy a property outright, you can explore the investment in real estate investment funds, ETFs or investment funds (FPI), which may even provide a steady income in some cases. Explore the crowdfunding, which now gives the average investor the ability to support start-up companies. Be aware that yields are declining, people who have invested in 2015 have almost 3% more performance. Just be careful not to focus your money too heavily in a any investment.
Spend money to make money, Warren Buffett
It is true that there is a price to pay for the wealth, but as Warren Buffett says, this is not a game. Impulsivity, naivety, and your emotions especially greed (all, immediately, performance) and fear can seriously hamper your chances to be rich if you let them dominate. The best way to protect you and to advance d´ a step your financial goals is to invest first in a team of financial professionals. This means the hiring of a consultant qualified and experienced in finance, an accountant and in complex cases, an Estate Planner. Yes, working with pros will cost you, and you can always do a bit of tinkering, but their objectivity, expertise, personalized advice investment and continuous monitoring can be useful (and relieve you of the enormous burden to figure all this on your own). However in my experience advisors who take in the middle are not necessarily the best consultants, but the best commercial, which they have any interest to sell you.
Make sure that you interview more candidates so that you can find pros who you have confidence, you feel uncomfortable with the approach is a right one for your situation. And even if you are working with an Advisor, make sure you are always involved and aware of the place where your money goes – and why.
Translation and personal interpretation of l´article http://www.entrepreneur.com/article/250412