| 8 Habits of Successful Wealth Builders -
July 21st, 2008
8 Habits of Successful Wealth Builders
{ Source- Book Reveiw of Michael Masteron in his book Automatic Wealth }
There are 8 common habits found in successful wealth builders:They
1.) Work hard.( Makes sense. Working hard at your career or business should grow your income. The author mentions $130k as a good starting target for income, which would be equivalent of say Rs 15-20 lakhs per annum.)
2.) Are good at what they do. (Again - makes sense to the point of obvious. A good engineer is going to make a lot more than a bad one and one needs to keep skills sharp and take some training courses and finding ways to “shine”.)
3.) Develop multiple streams of income. (Nothing new here - everyone knows that “multiple streams of income” are key to wealth. Some ways you can do this is by supplementing your salary with buying stocks and mutual funds and even picking up a second home as rental property.)
4.) Live in relatively inexpensive homes.( The author says he lives in a house that comprises about 10% of his net worth. This is a bit surprising but I can understand if he is referring to the timeframe when you retire. With home prices nowadays running anywhere between Rs 20 lakhs to Rs 2 crores, not everyone has assets of Rs 2-20 crores. Even then I would think this is on a lower side, I’d rather guess I would have anywhere between 20-30% of assets in a house when I pay off my debts.)
5.) Are moderate in spending. (Interesting. The author didn’t say “frugal” - I am not sure why. I think the main point was to keep spending down while increasing your income.)
6.) Are extraordinary in saving. That does not mean you have to be a miser. Saving about 30% of you post tax income should be a good estimate with 50% on a higher side
7.) Pay themselves first. (Several authors have said this.) What it means is that first thing you should consider paying is your education and career development, then pay off your high interest debts like credit card and then save rest of the money (after normal expenses)
8.) They count their money.( Now we are onto something. They count their money - I never heard this but it makes total sense. Take me for example - I now count my money each month with my excel spreadsheets and monthly net worth reports. I can see how taking this monthly assessment has helped me - trying to account for my net worth growth or lack thereof is helping me meet and exceed my goals. Nothing earth shattering.)
Disclaimer: The author of this post is not a financial adviser and this post is for your information only. | 
Linear Mode
