If you have a job and an income and just cannot seem to get ahead of the game.  Read on my friends.  This article will help you start to develop good money habits to begin to build wealth. 

If you are looking for a way to get rich quickly... this is probably not the article you want to read.


I know... every financial planner out there parrots this word.  Budget, budget, budget.  The word has almost become a curse word in the american language.  For this reason your budget is probably the most often missed point of getting your financial life on the fast track to freedom.  You must not think of the Budget as a pain in the butt.  Think of you Budget as a scoreboard in the game of money management.  You have to know if you are winning or losing so you can make adjustments and start to Increase your Wealth.

Live Below your Means

Once you have your budget in place you will see if you are spending more or less than you are making each month.   The simplest next step you can take to Become Wealthy is to live on less than you make or, live below your means.  It is almost silly to say but you cannot be like congress and spend more each year than you bring in.  Overspending will catch up with you and when it does the results can be Bankruptcy, Hunger, Homelessness, and other forms of personal pain.  If you are always living on less than you make, there will always be a surplus at the end of each month.  The next two sections outline what you will be doing with the excess.  

Automatic Savings

Most employers today offer direct deposits of payroll checks.  I would recommend setting up your excess amount to automatically be placed into a savings account.  It can be as little as $5 a week.  That alone will get you $260 a year set aside for a rainy day.  Each time that you reduce or remove a budget item, like a debt or you find you no longer need $600 a month allocated to food add a bit to your automatic savings.  If you find 5 budget savings of $5 a week that would add up to $1300 a year.  And chances are once you see this working you will be allocating more and more to your auto-savings.

Pay Cash for Purchases

The next thing you need to learn to Become Wealthy is that,  Wealthy people do not use credit.  Despite what the late night get rich shows tell you about flipping houses.  You are not going to get rich borrowing money.  Be sure to always pay cash for every single purchase you make excluding your home.  Paying cash does a few things for you.  Physically handing over hard-earned cash has a psychological effect on you that helps to prevent you from making silly purchases.  Throwing down the credit card or writing a check just doesn't have the same effect.  The other thing that is great about cash is that it has tremendous psychological effect over those people who you are buying things from and you can generally get a reduced price just buy showing them cold hard cash.