5 Key Habits of Affluent Wealth Builders
Affluent clients sit across the table from me nearly every day. Before you start to pass judgement on these wealthy individuals simply for the reason that they have wealth (which is a pretty common viewpoint)- I’d like you to know this:
My clients have earned their own wealth. I can count on one hand the number of people I work with whose wealth came from their family. From my observations over the years, most of these affluential wealth builders have a few key things in common.
1. Save first
Wealth builders don’t save whatever crumbs are left of their paycheck after the bills are paid. They save first and then use whatever is left for their bills and spending.
Spend what’s left.
My clients set up automatic contributions to their investment account from their bank after their paychecks come in. I encourage you to do the same.
2. Don’t react to fear
Whenever there is market volatility, I get many questions and comment from acquaintances. Things like “Oh I bet clients are calling you left and right!”
Honestly… my clients don’t tend to call more during market volatility than normal. They know that a drop of 14% a year is expected, they know they have a solid plan we are following together, and they know that a fear based reaction would spell disaster.
They stay calm.
3. Take advantage of opportunities
In addition to not responding with fear, wealth builders look for opportunities to invest. They got a bonus? They invest it. They got a tax return? Invest it. The market is low and they can buy stocks on sale? INVEST.
4. Take advantage of benefits
My wealthy clients are wealthy because they work smarter not harder. They take full advantage of their 401(k) match. If HSA or deferred compensation plans are available, they take advantage. If their employer offers cheap group insurance plans, they buy it. If wealth building tools are being overhead to them for free or at low cost – they use them.
5. Don’t sweat the small stuff
Wealth builders don’t get caught up on “insignificant” decisions. They are focused on the end goal. Why do they not focus on the small decisions? Because that can lead to decision fatigue. They don’t wait to save until they know their EXACT budget. They start to save SOMETHING and then see if their cash flow can handle more. They don’t research for months trying to find the absolute cheapest term life insurance. They find a suitable policy, buy it, and move on focusing on growing their greatest asset – themselves. Sometimes making a choice – ANY choice – is better than stalling from the overwhelm of decisions. If you want to hear my thoughts on this more in depth, check out this blog!
Building wealth is not a secret, nor is it easy. It takes investment in yourself, investment of your money, and investment of your time. But, like my husband recently told me – you just have to “eat it like an elephant.” One bite at a time.