If regular folks knew how shockingly ordinary millionaires were, there would be a lot more millionaires. One of the biggest erroneous ideas in the way of ordinary folks getting rich is that the rich are somehow smarter or possess some magic gene that separates them from the masses in terms of aptitude or capability. Nothing could be further from the truth as it is actually only knowledge and practice of saving, paying yourself first, making wise investments, giving, avoiding debt, staying on top of information and in contact with people, and taking action that separates ordinary people from their rich counterparts. In the end, emulate rich people, what they do and how they do it in life.
Golden formulas for achieving financial prosperity are listed below:
1. Let saving be your priority number one
Observe rich people and you will notice that they are all good at saving their money. Systematic and disciplined saving helps you realize your financial goals and reach financial independence in life.
2. Pay yourself first
Take one to ten percent of your salary and place it directly into your savings fund regardless of the amount of salary that you receive. Your savings will make you feel good and give you the self-confidence you need to keep on saving your money. Your saving does not have to be abrupt as you can achieve it gradually. Gradual saving is the least painful and most sustainable way of saving your capital. It will keep you motivated unlike with abrupt savings where you are likely to get frustrated and give up on your savings half a way.
3. Invest your saved up money wisely
Earning high income does not necessarily lead you towards achieving financial prosperity unless you become skilled at saving your money and multiplying it through investment. Your income is supposed to provide for your basic needs and can not help you achieve financial stability in life unless you master the skills of investing your money.
a) invest your monies into your own business
The smartest thing to invest your money into is your own business if you have one. If not, try and see if you can start one. Your best bet would be food industry as food prices are rising enormously every single day. That way your money would be multiplied as your business would continue to grow and provide you with continuous source of income. As you live in times of economic recession, securing multiple sources of income will be best bet for you.
b) invest the monies into a piece of property or land
It would be wise for you to buy real estate property now while the prices are low if you are well to do financially. It is a well known fact that rich people made most of their wealth by investing into real estate property. Investing your monies into a piece of property or a piece of land is always a wise investment. If you decide to buy a home and live in it, you will experience a feeling of security that only owning your home can provide you with. If you do not want to live in it and want to rent it, you can earn passive income off of it by renting it. As an added bonus you will manage to diversify your sources of income which is a blessing in today’s turbulent times.
4. Never underestimate the importance of giving
As much as saving is important, the same holds true for giving. Saving and giving are mutually interrelated concepts. Set up a small giving fund by taxing a certain percentage of every dollar that comes your way. Always remember the golden rule that the more you give to others in need, the more money will come back to you one or the other way. Giving makes you feel good and helps you experience many blessing coming your way. This does not mean that you should stop giving to charity organizations and churches that you give on a regular basis to. It only means that you should start giving a small percentage of your money to the needy people you run into on the street and/or in your neighborhood. You are free to tip somebody who does an extraordinary job for you without any expectation of return. You’ll notice that all wealthy people regularly give a determined percentage of their money away.
5. Avoid debt
Debt is a road to financial disaster. People take on debt because they want more than they can not afford. They take on unnecessary debt believing they will have easier time paying it off in the future. However, the interest rates they will be paying on their credit card debt will make their purchases cost much more compared to the original product cost. Eventually they will be forced to pay off their debt regardless of their daily struggle to cover for their basic needs. The best way to avoid debt is to live within your means by exercising self-discipline, moderation, and smart consumer choices.
6. Stay on top of information and in contact with people
Stay on source of information and be active by making it a goal to talk to at least twenty people per day. Information is crucial for achieving financial prosperity today as we live in the age of technology and information. Having the right information at the right time is key in achieving financial prosperity.
7. The act of taking action is, in and of itself, a magnet for financial prosperity
There are all sorts of reasons and excuses for not taking action. It may be a poor self-image, lack of confidence and/or a combination of ignorance, laziness and procrastination. Some people have a tendency to wait for better timing or more resources to come their way. The endless list of excuses for inaction is long and detailed. However, if you are seeking to attract financial prosperity in your life, you should forget about the excuses and start acting. Nothing brings more satisfaction and lasting prosperity as taking action does.
8. Emulate rich people and what they and how they do in life
If you want to achieve financial prosperity in life, emulate people who are financially prosperous. Take the time to find these people and study them carefully. Don’t worry too much about their personality or their attitudes but emulate what they do and how they do it. The quicker you align your present behavior with the behavior of people who are financially prosperous, the faster you will reach your goal of achieving financial prosperity.