Who wants to be a millionaire? Probably 70% of Americans are saying, “I do, I do.” Approximately 25,000 people become millionaires everyday. But do we really understand the concept of money? How to make it work for us or what to do with it? If most people were honest, they really don’t understand money other than how to spend it.
Money Coach, Lynette Khalfani has come up with the seven habits to build wealth. She has interviewed countless number of money professionals who have the inside track on how to build and maintain wealth. Sharing principal habits on how rich people build and keep wealth, Khalfani brought these principal habits to the everyday worker who dreams of having wealth.
Her best advice is to start where you are. Don’t wait to win or count on the lottery to build wealth. People with no concept of money ruin their own lives due to a lack of knowledge on keeping and maintaining their windfall of wealth. The word million is used as an acronym by Khalfani.
Million stands for 1) Make a personal prosperity plan 2) Invest first, last, and always in your reputation 3) Live like a lender, not a borrower 4) Leverage the power of property 5) Increase your fortune with proven methods not shortcuts 6) Overcome setbacks and minimize risks to your financial health 7) Never forget the next generation.
Khalfani believes that you are your best “Blue Chip Company.” Always bet on you. The personal prosperity plan is simply developing a budget to work within. It is literally writing down all your expenses, including the things you enjoy. Once this is accomplished, you can see where you need to cut expenses or rearrange some things. Always try to save even if it is just $5. Wealth is not magic. It takes work. Rich people do this all the time. After developing a budget, write down your short-term and long-term goals. Keep this information handy so that you can always review it.
Having a good name is worth more than gold. Get a free copy of your credit report. When you work on maintaining good credit or fixing bad credit, banks will want to give you money and the best interest rates. So work to repair and maintain good credit. Try to pay your bills on time and work with creditors to reduce interest rates. Always read the fine print.
“Don’t try to live like the Jones.” Live within your means. A sure way to free up cash is to make a plan to pay off credit cards. Also shop around for big purchases that actually fit into a monthly budget and are affordable. In living like a lender and not a borrower, you determine where and how your money is spent not someone else.
Depending on the length of time in a current home, the homeowner has equity in his or her property. This is a cash flow. With this cash flow a homeowner can avoid credit cards by using the equity in their home. It is also tax deductible. A home is considered to be part of a person’s wealth.
Take the time to learn about investments and what will work for you. Rich people use financial planners and people who understand investments to educate them on the best way to invest. A good investor has a diverse portfolio. All their eggs are never in one basket. Having a diverse portfolio will balance the windfall of change.
To overcome setbacks and to minimize risks use what is available to most people, insurance. Khalfani states that most Americans are under insured and don’t have the proper protection in the time of crisis such as job lay-off, divorce, or property damage to name a few. This is an area to consider in protecting and building wealth. She encourages people to shop around and consider their needs.
Lastly, never forget the next generation. Teach your children about money. Children watch how you spend money and what you do with it. Depending on the parents, children will adopt their parents’ money habits. These money habits will be carried into their adult lives. If parents do not teach their children how to respect money, they will always be bailing them out and taking care of their adult children.
“The Money Coach’s guide to your first million: 7 smart habits to building the wealth of your dreams” is a book definitely worth adding to your library. Filled with valuable information, Khalfani gives a countless number of websites to assist others in building wealth. If you presently don’t have money wealth, educate yourself. When you do, you will know how to keep it.