Ingredients for Financial Success

It's not that average-wealth people aren't as intelligent as rich people- it's just that rich people tend to make better choices on a more consistent basis with their time and how they spend their hard earned money.  The author of "The Millionaire Mind" says that two of the main ingredients for financial success include discipline and hard work.  In fact, over 80% of millionaires agree with this assessment of what is required for financial success. 

Unless you win the lottery (highly unlikely) or find a bag with millions of dollars in cash (even more unlikely!) you might just have to learn how to change your thinking to generate financial success.

Forget What You Learned About Money

Most people were taught certain things about money as children, and learned more as they grew older and gained more responsibility.  Many people have heard comments from their caretakers like, "it cost too much", "it's more than we have in the budget" and the infamous, "Do I look like I'm made of money?" 

Another typical issue with people who grew up with average amounts of money is the harboring of feelings towards people who are rich.  Most people have negative ideas about individuals with money.  If you want to be a person with money- you shouldn't think poorly of these people!

Don't Give in to the Credit Cravings!

People who have financial success have learned the importance of ignoring the credit cravings!  Just as a dieter must ignore and overcome cravings for the foods that caused the weight to go on, in order to cause the money to land in your bank account you need to overcome the cravings for purchasing with credit cards.

Credit card debt is not like "buy now, pay later"- since when you pay later you do so at such high rates of interest.  Consider the average credit card debt of about $5000 at a slightly lower than average credit card interest rate of 18%.  Monthly payments on this debt would be about $200.  If you were like most people and paid only the minimum amount each month, it would take you just under 13 years to pay off all of that credit card debt, and you would actually spend $7,916 to pay back $5,000!  (This assumes you're never late with a payment or make any new charges to the card).

Discipline and Saving

If you are serious about reaching your goals for financial success, then you must understand how money is worth more the longer you hold on to it.  A dollar saved today is worth more than the dollar you save tomorrow.   Place as much money as possible into high interest savings accounts while you figure out how to invest or what to do with your money to help you save for  your future.  The dollars you are able to save today will absolutely be worth more to you over the long term than if you wait until you have a concrete plan of action for how to save and invest your money.  Become disciplined and develop a regular savings schedule.