Wealth Creation Habits

ByManuel G Hernandez

It is a misconception that a salary earner does not have the potential to be financially stable compared to an entrepreneur. While the latter certainly has the advantage of earning more, an employee can still build wealth on a salary if he practices smart . While he may take longer to accumulate assets, over time his consistent efforts will pay off.

Below are some suggestions on building wealth slowly but surely:

Follow the ten-percent rule of thumb. Set aside ten percent of your paycheck and forget you ever had that amount. Put it in the bank and keep your ATM card "out of sight, out of mind." This way, you will not be tempted to draw from that account when your local department store holds its bi-annual super sales.

Choose your financial institution well. Do your research on which bank gives the best possible interest for your money. One of the practices of wealth creation is looking into the different account types and choosing the best one for your growing nest egg. Be aware of the fees they charge.

Choose a debit over a credit card. A debit card forces you to be a responsible shopper, whereas a credit card gives you a false sense of financial leeway.

Learn to live within your means. The goal is to live within your income and still be able to set aside that magic ten percent. Live simply now so you may enjoy financial freedom later. And later is always better than never!

Cancel all credit cards you did not apply for. Financial institutions and retail establishments take the liberty of sending pre-approved, ready-to-activate credit cards to people who didn't even ask for them in the first place. While they may appear at first to be heaven-sent, be smart enough to see through their marketing ploy. It will only destroy your wealth creation plans. Cancel the cards and don't forget to cut them up.

Politely refuse people who ask for change. There are people who have the habit of asking for a dollar or two when their lunch money falls short. Lending them a dollar may not seem like much, but if their practice is habitual, those seemingly small amounts will add up. Before you know it, you have given that person almost twenty dollars in a span of one month. Those twenty dollars could have gone to your savings account or paying your phone bill. So, the next time someone asks for spare change, politely but firmly tell him that you just have enough to last yourself for the day.

Consult a reputable financial advisor. When you have saved enough money to diversify your assets, get some financial consulting. Your consultant may advise you on pension and insurance plans, as well as investments such as stocks or mutual funds. Always remember to weigh the risks and not be blinded by get-rich-quick schemes.

Good luck in your wealth creation endeavor and remember that consistency is key to your success and financial freedom. You have the power to change your life for the better!

Manuel Hernandez shares smart tips on wealth creation featuring interviews of well-known life coaches. Listen, learn and lead the life you have always wanted!

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