Want to be wealthy? You need to master the habits they swear by.
First, financial success can mean different things to different people. For some, it is about having a perennial supply of money while for others it means making wise decisions with the money they have on hand.
However, it is not only about squeezing expenses and saving pennies.
Getting wealthy also requires having an eye for entrepreneurship and involves generating multiple income streams to ensure lifelong financial security.
These are the 7 lifestyle choices that differentiate financially successful people from the rest:
1. Goal Setting
Successful people plan their finances to increase their income and not just to meet their daily expenses. These goals can be anything from switching between a 9-5 job with a small business or generating a steady stream of income while they are blissfully asleep.
Achieving financial success requires a solid plan that is not only specific and achievable but also time-bound and measurable.
A financial plan makes it much easier to save more and manage your daily spending. As with a personal plan, you may wish to set the stage by using self-directed IRA to secure your future.
2. Going Beyond the Minimum
Financially successful people have an inherent eye for entrepreneurship which enables them to cut costs and manage expenses in tough times.
They are constantly on the lookout for new opportunities that they can leverage to boost their income. For them every budget is bifurcated into two parts: Income and Expenditure.
While the average individual simply focuses on saving and spending, the financially successful go out there and explore opportunities to increase their income beyond their daily expenses.
3. Delaying Instant Gratification
All financially successful people have one thing in common: the ability to delay gratification.
Their wealth and business success are their priority for which they are willing to delay short-term benefits for long-term gains.
4. Maximizing Retirement Investments
Successful people have the knowledge and the expertise in investments. They also have the patience and the persistence that is needed to increase retirement savings bit by bit and build a reserve.
Successful people are disciplined savers who start early and save as much as they can because wealth creation is their top priority and they seek to maximize their retirement reserve via their self-directed IRA which allows them to grow their wealth tax-free.
5. Avoiding Debt
Successful people avoid getting into the debt trap in the first place and if at all they do, they pay off their debts as soon as possible and save interest money that accrues over time.
They also create an emergency fund to pay for any unforeseen expenses that otherwise take a toll on their retirement nest egg. They resist temptations like lavish cars, exotic vacations and expensive clothing, and stay focused on their financial goals.
6. Staying Updated
Financially successful people don’t procrastinate. They are lifelong learners who act on every opportunity that brings them closer to their financial goals.
They read books, attend programs and constantly reinvent themselves because they know yesterday’s goals may not give them the same results tomorrow.
Whether it is a new business investment opportunity or an advanced online tool for managing finance, they keep all the relevant information at their fingertips so they know what their savings and investments will look like in future and what financial opportunities can arise in the near future.
7. Minimizing Taxes
Minimizing the tax burden helps you make the most of your investments. But how can it be done?
Money-wise people invest in tax-advantaged accounts like 401(k)s and self-directed IRAs that give total checkbook control. The financially successful realize that pension, social security, stocks and bonds are not sufficient if they want a financially secure retirement.
They know that the key to controlling their financial future is a self-directed IRA that allows them to invest in a wide range of assets beyond bonds and stocks.
A self-directed IRA compounds over time to create lasting wealth, all the profits keep growing tax-free and it also protects the hard-earned assets from creditors.
Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, and he has over three decades of experience working with investments and retirement planning. If you need help and guidance with traditional or alternative investments, email him at email@example.com.