Habits for Building Wealth #1

Habits for Building Wealth #1

Habit #1: Pay Attention

You’re driving down the highway when smoke starts billowing from under the hood. Do you keep going, hoping the engine fire will magically put itself out?
Of course not. You pull over and face the reality of your situation.

Same with building wealth.You can’t get where you want to go unless you Pay Attention to where your money is going first.

Pause Now, Profit Later

In a swift-swipe world of credit cards and Apple watches, it can be hard to track your spending. Sure, the speed of instant transactions is convenient –  but it’s taken away “The Pause”: the opportunity to ask yourself, “Do I really need this?”

Picture This

  • “Budget” isn’t a four-letter word. But if you’re too busy to put your wallet under 24-hour surveillance, try this:
  • Take a picture of a goal: the house you want to buy, the child whose education you want to fund.
  • Tape that picture to your “plastic.”
  • Every time you use a credit card, ask yourself, “Does this purchase serve my future goals?”
  • “The Pause” and the picture will help focus your priorities: “I really want that house” or “My kid’s college fund comes first.”

Wants Are Temporary, Needs are Forever

Luxury goods. Hot restaurants. The latest smartphone.

They’re tempting.

But you know what? They’re wants – not needs. Starting today, don’t just randomly spend money. Use money to manifest your goals. Because every little expenditure counts – and over a lifetime, they  can sure add up. It’s what best-selling money guru David Bach calls “The Latte Factor.”

Let’s say you buy a $4 latte every day. In 10 years, you won’t have much to show for it except a foamy mustache. But if you invest that $4 (with a 7% annual average return), you’ll have $21,584. That’s a whole latteeasy cash…just for brewing your morning joe at home.

Paying Attention Pays Off

Pay attention to your spending and you’ll build more than wealth.

You’ll build peace of mind. And that’s priceless!

 

This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Traci Richmond, CFP® and not necessarily those of RJFS or Raymond James. Raymond James does not provide tax or legal services. Please discuss tax or legal matters with the   appropriate professionals. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.

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