Get Rich Slow

We have all heard or seen the multitude of get rich quick schemes and scams. Work from home, multi-level marketing, investment tips, and a host of other questionable opportunities promise us fame and fortune beyond our dreams. However, if getting rich were that easy we would all be millionaires and this article would be irrelevant.

Achieving wealth takes time, effort, dedication and above all, strategy. Wealth is more than a large bank account. Wealth is prosperity and security. Wealth is more than flashy clothes and a fancy car.  Wealth is investments, assets, and retirement plans. Six figure salaries can be lost to debt while meager wages can earn financial freedom. Wealth is an attitude.

There are two simple steps to becoming wealthy. However, they require discipline. If you can turn these two steps into habits, wealth will come.

Spend Wisely. Poor spending habits are the pitfall that make goals of wealth mere dreams. Do not create a budget, instead create a spending plan. In order to do this, track your spending for a month. Log each purchase or review your account online and categorize your spending. This will help you to see where your money is actually going. Too often, people create budgets based on what they think they are spending and it is impossible to stick to the budget because it is based on theory rather than fact.

Once you have determined how much you spend and on what, subtract your total spending for the month from your earned income for the month. This number will let you know if you should have money left over at the end of the month or if your expenses exceed your income. Based on the money you have left (or the negative amount you owe) decide how much money you would like to have left over that should be put into a savings account. Ideally, you should be saving at least ten percent of your earned income. Then go back through your spending and find ways to cut back here and there (realistically).

More than likely, you will find a few surprises in your spending habits. Those value meals at the drive-thru add up quickly! Determine a reasonable amount to spend on all of your purchases and find areas where you can cut back. Perhaps you can do without a few channels to lessen your cable bill. Also, you will be surprised at the offers the cable company will make to keep you as a customer. By simply making a phone call, you may find that your cable company can offer your more channels at a lower price. If you look hard enough, you should be able to find several areas in your life where you can cut back on your expenses.