Want to Build Wealth? These 5 Habits Aren’t Flashy, but They Work
“Building real wealth isn’t always exciting, it’s repetitive, intentional, and sometimes downright boring. But that’s exactly why it works.”
Most people are running after fast money which can come in the form of a lucky investment, a side hustle that takes off overnight or some shortcut to higher income. Something pretty simple that I learned after having spent more than 40 years working with families & business owners is that real wealth usually grows slowly, steadily & without much flash.
My clients who are just starting out or trying to get serious about their financial future always know some of the most important money moves that I recommend to every client.
Automating consistent and long-term investing even in small amounts is important so no matter what the market conditions are, everyone should make it a habit to put away some amount of money every month even though it may seem like there won't be much results. The reality is, this is exactly what lays the foundation of your wealth starting to compound. Automatic contributions towards a brokerage account for example, even if it’s just $50, help cut out the emotional highs and lows of market timing.
The most crucial thing here is your consistency. Consistently showing up month after month and year after year, is what really helps grow wealth.
Tracking where every dollar goes actually gives us freedom through awareness. Budgeting is always seen as the bad guy because it feels like we're keeping tabs on ourselves. It is impossible to work on limiting something that you dont even measure. When you use notebooks or apps or spreadsheets and note down exactly how much goes to dining out, subscriptions etc, it help you redirect funds toward what is most important.
Making sure you're saying yes to the right things makes you feel like you're not having to say no to everything.
There is absolutely nothing exciting about saving three to six months of expenses in cash. It just sits there and earns you almost nothing. But building and maintaining a real emergency fund helps you out so much when you suddenly experience a bad time in your life, which you almost always do. That cash you saved absorbs much of the shock allowing you to stay on track of your long-term plans.
People don’t realize how expensive it is to make a financial decision out of panic. An emergency fund protects you and also gives you power. Having to make a financial decision in a state of panic costs you very heavily but most people don't realise that and end up depriving themselves of the protection and power that an emergency fund can provide.
Paying off your debt takes time and sacrifice, but carrying credit card balances or loans with high interest quietly takes away everything you’re trying to build. Whatever money is spent on interest is a total waste and you could have used it to compound your wealth instead.
Nobody gets out of their debts overnight but every payment you make takes you a step closer to your financial freedom.
No one likes to think about wills, trusts, or healthcare directives. Wealth though, is created by growing money, but protecting it is just as important. Your wealth gets passed on smoothly with fewer taxes and legal delays and even confusion can be avoided if you have an estate plan.
You don't need to be very rich to pull this move, it’s a move that responsible people make. Even a basic plan can save your loved ones stress and expense.
People are either trying to sell you something or just simply lying if they told you that building wealth was fast or easy, because it certainly is not those two things. It takes patience and time and your willingness to delay your happiness but I can guarantee that they work because I have seen them work over decades across generations and in every kind of economy.
Peace of mind and freedom of choice are the benefits of being smart and building your wealth along with a legacy you can be proud of.
Investment advisory services offered through Kingsview Wealth Management, LLC ("KWM"), an SEC Registered Investment Adviser. Insurance products and services are offered and sold through Kingsview Trust and Insurance Services ("KTI"), by individually licensed and appointed insurance agents. KWM and KTI are subsidiaries of Kingsview Partners. KWM is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.