Lifestyle Changes You Need to Adopt If You Want to Be Rich

There’s a simple formula to follow if you want to become rich and successful: Earn more, spend less and save as much as you can. It sounds great, sure — but how, exactly does one do all that?

The process starts with being willing to put yourself out there and head down a riskier but ultimately more rewarding road. You must break your old patterns and change your perception of wealth. You’ll need to shed your middle-class mindset and adopt new habits that will set you up for lasting financial freedom and prosperity.

Visualize yourself achieving your goals

If you want to achieve great things, you need a clear plan of action. Develop a state of mind in which you clearly can visualize your goals for attaining wealth. So many people don’t reach their true potential because they don’t really know what they want or how to get there.

Push yourself beyond your normal boundaries

A middle-class mentality seeks a comfortable, complacent existence. It wants to avoid the pain of constant hard work.

Of course, there’s nothing wrong with that attitude, but you aren’t going to become a millionaire from the comfort of your couch. If your goal is becoming successful beyond your wildest dreams, you’ll need to face discomfort and uncertainty at times. You must get used to pushing yourself outside of your normal boundaries.

Adopt a modest lifestyle

While you push the boundaries on your mental and physical abilities, it’s also important to keep close tabs on your spending habits. Adopting a frugal mindset alone won’t earn you more money or make you rich, but learning to live modestly is an important part of achieving overall financial stability. You’ll only sabotage yourself if you blow your wealth before you have the chance to accumulate it.

Track your spending and cut the excess

Get up close and personal with your money habits. Record how you spend every dollar. Do this for at least 30 days so you can get a clear picture of your spending habits. Then take the time to analyze your practices. What are you buying that you could reduce or eliminate completely?

Start by looking for obvious cuts — the cable bill for channels you never watch, the subscription for a magazine you hardly ever read, that gym membership you only use once a month. Cut these ongoing expenses and move to an à la carte method: Pay only for what you need, when you need it.

Learn a new skill

To become a success, you also need to become knowledgeable, well-rounded and competitive. This requires you to be dedicated to self-improvement and the continued learning.

Keep broadening your prospects — devote time every day to learning something new. According to Josh Kaufman, author of “The First 20 Hours: How to Learn Anything … Fast!”, you can learn a new skill quickly by following this pattern: Deconstruct the skill, self-correct, remove barriers to learning and practice for at least 20 hours.

Work an extra job

Rich people don’t rely on one job to build their wealth. They’re always working something on the side. Having more than one source of income increases your ability to build wealth, helps you increase your skill set and expands your knowledge in different areas. Think of this as a chance to monetize a hobby or area of interest.

Use automatic transfers to help you save more money

It’s easier to save money if you never see it in your account to begin with. Set up automatic fund transfers from your bank account so money comes out before you even miss it. It’s OK to start small. You’ll find that just $50 a month will add up over time.

The more money you have socked away, the more options you have. Your savings enables you to take advantage of investment opportunities or bankroll lucrative ideas, including your own.

Make your money work for you

Most millionaires follow a rule of thumb that can work for you, too: Invest at least 20 percent of your household income each year. In fact, author Ramit Sethi contends that most millionaires don’t measure the amount they make each year. In his New York Times bestseller “I Will Teach You to Be Rich,” he explains these high earners are more concerned about how much they save and invest over time.

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