8 Habits of Successful Wealth Builders
Michael Masteron in Automatic Wealth suggests in his experience there are 8 common habits found in successful wealth builders:
1.) Work hard.
Makes sense to me. Working hard at your career or business should grow your income. The author mentions $130k as a good starting target. The early focus for me since graduating has been on my career. I am wrapping up a 2 year career development program and hope to see the benefits of this in my income in the next few years.
2.) They are good at what they do.
Again - makes sense to the point of obvious. A good salesperson is going to make a lot more than a bad one. I guess I am a good engineer although this reminds me I need to keep my skills sharp and take some training courses. I also need to continue to find ways to "shine".
3.) Develop multiple streams of income.
Nothing new here - everyone knows that "multiple streams of income" are key to wealth. I totally agree. I am working on it, but don't have much to show for it - I have a rental property, dividends and interest, and a small amount of income from my side business. I guess I really need to focus on how I can grow and multiply these streams more quickly. A big to do here.
4.) Live in relatively inexpensive homes.
Ok. I hadn't really picked up on this till I read it. The author says he lives in a house that comprises about 10% of his net worth. I had always thought I wanted a big main house. I think I am on board now and am thinking about shrinking my dream to a more moderate home that will just accommodate our needs.
5.) Moderate in spending.
Interesting. The author didn't say "frugal" - I am not sure why. I think the main point was to keep spending down while increasing your income. I feel I am extremely moderate in my spending, but it will be difficult to keep spending under control going forward with an upcoming wedding, new house, family, etc.
6.) They are extraordinary in saving.
I like to think I am currently extraordinary in saving - after all, last year I saved nearly 53% of my income. Not sure how I can improve this.
7.) They pay themselves first.
Ok I think most of us already read or know about David Bach's cure all tag line "pay yourself first" - however its good to see that this technique is on the money. I already max out my 401(k), ESPP, and have auto-monthly contributions to my Roth IRA.
8.) They count their money.
Now we are onto something. They count their money - I never heard this but it makes total sense. Take me for example - I now count my money each month with my monthly net worth reports. I can see how taking this monthly assessment has helped me - trying to account for my net worth growth or lack thereof is helping me meet and exceed my goals.
Nothing earth shattering, but I see one key area I need to focus on - multiple streams of income.
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