Five fundamental habits to build wealth and get rich quickly

Seriously, you don’t have to be lucky or exceptionally talented to get rich and build wealth fast, it definitely does help but it’s not always necessary. If you’re really determined to build wealth and get rich you can do it, one the of the steps that I took to get me on the road to becoming rich and wealthy was changing the way I think about money.

I completely changed my paradigms and dropped some bad habits and picked up some better ones. It becomes surprisingly easy to build wealth when you’ve dropped all your bad habits and adopted habits that help you build your wealth. There are five habits in particular which have really helped me and might help you.

#1: Only Spend on Essential Items

Getting into the habit of only spending on essential items based on necessity rather than luxury will really help to slash your budget considerably. When I started doing this I cut all of my entertainment expenses, I sold my car and walked to work, I only shopped at budget grocery stores like Lidl and Aldi and bought the cheapest item I needed, I cancelled my phone contracts.

I even started shopping at consignment stores for clothes and furniture. Taking this frugal step helped me by slash my budget by half. The reason I took these steps was because I wanted to invest for my future, I wanted to build wealth so that I could retire quicker and have a better standard of living later in life, the more I cut now the quicker I could start my journey on financial independence and early retirement.

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#2: Channel Your Passions into Money

Everyone is passionate about something, I’m really passionate about writing and money and I’ve started combining the two to write articles on revenue sharing websites, I’ve even started my own personal finance blog. Writing online has helped me to increase my income significantly. For me it’s really rewarding to write about something I’m really passionate about and get paid at the same time.

If you’re really passionate about something then look for ways to channel that passion into money, think big and take your ideas, products, or services to every corner of the world. If you have an effective idea that solves a problem and you’re passionate about it the money will inevitably come. If you can get into the habit of continually channeling your passion into something that pays then this is a great way to build wealth and riches.

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#3: Look For Better Rates

When I started practicing the first two habits I saw my surplus income jump significantly, I then started practicing the third habit which was to always look for better rates so that my money would work hard for me. If you leave money in a low profit account then you’re denying yourself wealth, the effects of compounding profits will not work in your favour and it will take longer to achieve tour financial goals.

Get into the habit of always looking for a better rate, although interest rates and profit rates are low at the moment you still need to take advantage of sudden rate hikes bank offer. At the moment I am any surplus money that I have is transferred quickly to a 60 day notice account, as soon as I reach £10,000 I quickly transfer this money to a 2 year fixed term deposit which pays even more, when these products mature I roll them into higher rates. Getting into the habit of wanted your money to work harder for you will help you to reach your goal much much faster.

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#4: Use Other People’s Money

One great way to build wealth and get rich quicker is to use other people’s money to support your expense. I live in a 3 bedroom property and I’ve managed to rent some of the rooms out so that there’s money coming in to pay the mortgage and energy bills, I want to eventually let out all the rooms so that my full mortgage is paid along with the energy bills by the tenants, this will mean that I will be living for free.

Other great examples of using other people’s money to get rich are using zero percent interest credit cards to pay for all your living expenses while banking all your income into a high savings account, you can make minimum payments for the interest free period and then pay the balance off in full when the interest free period is finished, all the income that you banked will help cover this and any remaining will benefit from receiving profits and interest.

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If you can get into the habit of continually looking for ways to use other people’s money to cover your expenses by offering them space or time then you’ll reach your goals quicker because other people are indirectly helping you.

#5: Learn to Protect & Grow Your Investments

You should always look to protect your capital, never listen to investment adviser who say age is on your side so you can take higher risks with your capital, if you do end up losing money then you’re preventing yourself from reaping the benefits of the compounding effect of profit and interest. Learn to manage your own money and look for conservative strategies that pay less but have more protection towards your capital, look for investments that have rescue strategies so that you can salvage your money if the unlikely was to happen.

I’m learning about selling options to make small profits, I am currently learning all the strategies on offer from the investment blog FullyInformed.com and using a virtual trader account to practice, the strategy and methodology and protection offered to capital are congruent with my investment beliefs and if I can get a return of 12% per year over a long period of time I can compound my wealth every year and become very rich.

Habits to Build Wealth

If you really want to become rich and wealthy then developing and evolving the five habits outlined above will get you to where you want to go, you don’t have to stop at five habits, you could add a habit every week and really make your wealth grown, the more passionate you are about growing your wealth the quicker you’ll reach your goal.