For many people, the beginning of a new year is an occasion for taking stock and considering one’s financial situation. What do you hope to have accomplished by the end of 2023? Will you be in a better position than now? Will your family’s life also be improved? If you are like most people, your goal is to one day be financially free. You want to build enough wealth to weather any economic changes while knowing you and your family have the freedom to choose what you do with your time and money.
This may seem like an impossible task. But if you are willing to make some changes in your life, it is possible. Financial habits shape our future financial picture. The choices you make today will leave an impact for years to come, whether positive or negative. This goes beyond just financial habits and decisions — building wealth requires persistence, hard work, and whole-life habit changes. The sooner you start creating good habits, the better off you will be in the future. But to grow enough wealth to be financially free, what habits matter most?
#1 Consistently Investing
Even during times of economic uncertainty, there are still opportunities to invest. Whether it’s investing in real estate, funds, or other assets, millionaires prioritize investing and consistently find ways to put their money to work. Investing in anything intelligently takes time and requires continuous education to know what is happening in that particular market. Millionaires don’t wait for perfect market conditions, they seek opportunities and make calculated risks.
#2 Patiently Watching it Grow
Building wealth is a long-term game with most investments, and this means being able and willing to let that money work without wanting to spend it. It takes discipline to watch your investment grow and leave it be, not allowing the temptation to spend all your earnings to take root. Don’t let the high-spending lifestyle eat away at all the passive wealth your money was building just to appear wealthy or successful.
#3 Being Persistent, Not Giving Up in the Face of Setbacks
Will you always make perfect investments? Of course not. Even with education and experience, you will still face obstacles as you work to build your wealth. Having grit, determination, and the will to keep going when things go wrong is necessary. Let setbacks be an opportunity to learn and grow rather than an excuse to stop trying.
#4 Being Open to Opportunities, Willing to Take Calculated Risks
Investing is different from just saving money for a reason — you’ve bought into an opportunity when you invest. When you save, your funds are stashed away but they are not working for you. Millionaires stay open to new opportunities and investment ideas but do their due diligence before leaping. Investing involves risk, however, those risks can be mitigated by intelligent investing and diversifying where you invest your money.
If you’re just getting started building wealth and working towards financial freedom, let this year be the start of new habits that help you on your way. It is never too soon or too late to change the way you look at investing, spending, saving, and working towards the financial goals you’ve laid out for yourself for the years ahead.