I think that there are distinct differences between people who are get rich by habit vs those who hope to get rich with luck. Those who get rich by habit work hard, spend their money frugally and have a plan. Those who try to get rich with luck play the lottery or hit the casino. Which one are you going to be? 

Not many people get rich with luck. Sure people win the lottery, but for every story of a lottery winner there is a story of a past lottery winner going bankrupt. Sure an occasional person hits the jackpot playing the slots but not many. Accumulating wealth and financial freedom comes slowly from a lifestyle of good habits. What kind of habits should you exhibit?

1) Make more than you spend. You’re not going to accumulate money by spending more than you have. Get on a budget and make sure you have your spending in check.

2) Save your money. A recent study found that most Americans only save 5% of their income. You’re not going to get rich off putting 5% away. And I’m not just talking retirement either, that should be something separate. You should be saving closer to 10% of your income. Things like new cars, houses and vacations don’t grow on trees.

3) Have a safety net. When trouble comes knocking at your door will you be ready? Will a minor setback either in losing your job or getting injured majorly set you back? Get insurance: health, auto, life and homeowners/renters. Set up an emergency fund for those rainy days.

4) Invest your money. The couple of pennies each year that your bank throws at you won’t get you to financial freedom. Stocks, mutual funds and real estate are scary and risky. Sure, you might lose money. Successful people in this life learn to be comfortable with some level of risk and invest up to that. A smart investment in the market should be netting you 10%. That is how you grow your finances. Do some reading and learn to be comfortable investing your money. Sure you’ll have some ups and downs but by playing it smart and not putting your eggs all in one basket, and barring the economy collapsing (it came back though and people didn’t lose all their money if they stayed in the market), you should be able to grow your money.

5) Stay positive and keep your eyes on the prize. You won’t get rich overnight. It won’t happen next year either. But by adopting strong financial habits, little by little, slowly by slowly, you’ll start to accumulate wealth.

6) Keep reading this blog! In a not so random sampling of one person, they admitted with great confidence that YoungMoneyFinance had played a direct role in helping them accumulate wealth by giving them great tips that helped them form great habits. Nuff said.

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