A surprising 80% of millionaires are first generation wealthy, according to LA Times writer Kathy M. Kristof in her article To Be Wealthy Don't Get Trapped in Trappings. What this means is that becoming wealthy is not only within reach, but it is highly possible because the percentage of folks who simply inherited piles of cash is miniscule compared to the number of people who made up their minds to work hard, save and invest and basically get rich the really boring way.
So what can the Average Joe take from these statistics? There is hope... but strategy is a must for success.
Millionaires Have the Right Mindset
More money is not the answer to becoming wealthy. The sooner the truth of that statement soaks in the better. What matters most is having the right attitude to spending and saving. Income can increase, but if spending increases in tandem then there is still no extra to save and becoming wealthy is still a far off dream.
To Be Wealthy - Get in the Habit of Saving
Nobody has gotten rich by spending lavish amounts of money. If the aim is to become wealthy, one’s actions must reflect this goal. Adopt measures to nip impulse spending in the bud. Leaving credit cards at home and operating on a strictly cash basis forces a stopping point, because there is no way to spend more than is in the bank.
Don’t Stop There… Investing is What Builds Wealth
Robert Kiyosaki, the best selling author of the Rich Dad, Poor Dad series quips that ‘savers are losers’ because the purchasing power of the dollar has dropped and it will continue to do so for the conceivable future. This is why simply putting aside money in a savings account is setting up for failure. Investing is the only way to have a fighting chance against inflation.
The Rich Often Find a Mentor and Follow Them
The road to building wealth can be lonely, but it’s much easier if there is someone else lighting the way. A mentor doesn’t have to be someone that can be invited over for coffee and biscuits. This person can be a huge success story who has published a book or they can be someone from the local area or industry. The important thing is to be able to identify the road they took and try to emulate their success.
There are many rags to riches stories, some a lot more exciting and interesting than others, but they all share a common theme. True wealth, the kind that lasts, comes not from get rich quick schemes but from a commitment to hard work and perseverance.
Natalia Jones - Natalia Jones is a full time freelance writer. She has an Advanced Diploma in Financial Management (ACCA) and she has previously worked in ...
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