What is the key ingredient to wealth building?
Many people aspire to build wealth, but a lot of them do not succeed.
So what is this key ingredient to building wealth?
In today's video, we are going to discover the key ingredient for
building wealth.
We will uncover what it takes to build and accumulate wealth so you
can actually do that.
And if you've watched any of my other videos before, you're probably
thinking, I'm going to say the key ingredient to building wealth is
investing your money.
And while, yes, that is a really important part, there is one key
ingredient before investing our money.
Before we get to that, let's talk about what wealth building really
is.
Wealth building refers to the process of accumulating assets and
resources that are going to make you money over time, and that can
also create passive or semi passive income for you.
These items can include properties or stocks or bonds, or even just
cash.
Wealth building takes discipline and consistency and of course
patience.
And this key ingredient is simple but also challenging to master, and
it is actually self discipline.
We are going to discuss how self-discipline builds wealth and some
practical tips to help you be even better with this self-discipline.
Self-discipline is the ability to control one's actions, behaviors,
and emotions to achieve financial freedom or even just financial
security.
Without this self-discipline, building wealth is impossible, but there
are things that we can do to change our environment to make it easier
to have this self-discipline.
How does self-discipline contribute to wealth building?
First, it helps us control impulsive spending habits.
One of the biggest habits for a lot of people to overcome is
overspending.
With self-discipline, you're able to control that spending and not
overspend, but also put that money towards saving and investing.
And second, self-discipline helps us create consistent saving habits.
Without self-discipline, it is difficult to maintain a budget or a
spending plan, save money and also invest money.
And third, self-discipline helps us to make better investments with
our money because as we know, wealth building is not just about saving
our money, but also about investing our money.
With the self-discipline, we are able to take the time to analyze
certain investments and see if they really would be good for us
instead of just impulsively making the decision to make a big
investment without really understanding it.
Going back to impulsive spending habits, I used to spend a lot of
money on clothing.
I would take a trip to Ross with my girlfriends.
It would be kind of the thing thing that we just did.
We would meet at Ross and we would all buy one outfit that we thought
was really cute for ourselves.
And I didn't really need another outfit.
I didn't need more clothes, but that was just something that we did.
So if this is something that you are struggling with, one way that I
changed that habit was to plan something else with my girlfriends.
We could do a movie night at my place or even dinner at my place or
just do a dessert somewhere.
Or if they still wanted to meet at Ross, I would just not bring my
credit card in with me so I wouldn't be tempted to buy another outfit.
Another thing that helped with overspending was to set my financial
goals to be really specific with what I wanted to achieve financially.
And this was honestly a big game changer.
When I set the goal to purchase another property, I didn't want to be
spending money on clothes.
I wanted to be saving for a down payment because I knew if I purchased
another property, I would start creating more cash flow.
And once I have all of these assets and I'm creating that passive
income, then my assets can go toward buying my liabilities or things
that weren't going to make my money work for me.
So if we are setting our financial goals and keeping them at the top
of our mind, we are going to be less likely to overspend, but we also
want to make it harder to spend our money on things that we don't
really need or that aren't going to bring us lasting happiness.
If we can change our environment so that we have less temptation to do
that, the better off we are going to be.
So like I mentioned before, instead of going shopping with my
girlfriends that I would invite them over to a movie at my place.
But think of little different things you can do to change that
environment to completely get rid of the temptation.
If you and your girlfriends always go window shopping that you end up
buying something, then make sure and not bring your credit card with
you.
Or if you have an accountability partner, someone that you are telling
your financial goals to, and they can hold you accountable to those
goals, you're going to be less likely to overspend or spend your money
elsewhere.
And then going back to that savings habit, becoming self-disciplined
with savings, it's a lot easier to do that if we can automate that
process.
I gave a presentation quite a while ago and one of my friends happened
to be there and she came up to me after and said she was going to
implement what I had recommended.
I had said to set up an automatic transfer to your savings account so
that you don't even have to think about that.
And she texted me months later and said that she had a significant
amount in her savings and she knows that would not have been possible
if she did not set up that automatic transfer.
There are things that we can do to automate this process so that we
don't have to rely just on self-discipline, but we have to set up
those processes to begin with.
So we really do need some sort of self-discipline so that we can at
least get started and then we can start to change our environment and
implement the auto transfer, automate things.
And then of course, going back to not only saving our money but
investing our money, we really, really need to invest as much as
possible as soon as possible in order to build our wealth as quickly
as possible.
Not only can we set up an auto transfer to our savings, we can also
automate our investing.
This has been a game changer for me.
I have an auto transfer that goes directly into my investment account
and in the investment that I want, and I don't even have to think
about that every single month.
If you want to get better with your investing, especially in the stock
market, I have a free masterclass.
I will leave a link below in the description.
You can click on that, check out the masterclass and see exactly how
you can invest in the stock market and even automate it.
And here are some tips to develop that self-discipline to help us
build our wealth because now that we know the importance of it, let's
talk about how to develop it.
The first thing we want to do is to start small.
We can start with just one thing to begin with and then build up from
there over time, if we really want to build wealth, then that is what
we need to be focusing on.
So for example, instead of spending an hour on social media, just
scrolling everyone's profiles, we can say, all right, I'm going to
spend an hour learning how to invest in the stock market.
And maybe it's not even an hour, maybe it's just 30 minutes.
Just start with something small that doesn't feel overwhelming to you
so that you'll actually do it and build up that self-discipline
muscle.
And a great way to help with this is to create some sort of trigger.
If you do want to spend an hour a day learning about investing, then
find something you are already doing every single day and then
implement this habit right after that item you are already doing.
For example, if you are eating dinner at night and you tend to scroll
through social media while you eat dinner, and even after you're done
eating dinner, still scrolling, you can say, okay, when I sit down to
dinner instead, I will open a YouTube video and watch something about
investing.
But that way you know you're going to eat dinner every single night,
so you have a trigger once you are eating dinner or maybe you wanna do
it after dinner, but you can associate that new habit of learning to
invest with something that you are already doing with a current habit
you already have.
The second thing that can help us improve our self-discipline is by
practicing delayed gratification.
We can train our minds to start thinking in the long term instead of
the short term, instead of always indulging in that instant
gratification, we can delay that instant gratification and then reward
ourselves later.
For example, we can set some short-term financial goals, but also set
some long-term financial goals and then work backward and decide,
okay, what is going to help me achieve those goals?
If we want to save up a $12,000 emergency fund in 12 months, we're
going to need to save a thousand dollars a month.
So if we can practice our delayed gratification and actually pause and
think before we spend money, if we can think, oh, what is my goal
here?
Oh yeah, I want to save $12,000 for my emergency fund.
Instead of buying this Chick-fil-A meal, I'm going to eat at home
instead and put that money toward my emergency fund.
Instead of having that instant gratification of just buying food, we
can go home and make some food and realize that we are saving money
for something that is more important to us than just that instant
gratification.
And we can also create little rewards for ourselves when we do reach
those goals.
For example, when you do build up that $12,000 emergency fund, then
you can think of a reward that you would like.
Maybe it is binge watching your favorite show on Netflix or something
like that.
And of course, we don't want to reward ourselves with something that
is going to go against our financial goals.
And then the third thing we can do to help our self-discipline is to
surround ourselves with like-minded people.
It's a lot easier to stay self-disciplined when we are surrounding
ourselves with people that are going to support us in our financial
goals.
To share a personal example, I have a mastermind partner or an
accountability partner, and we check in with each other every single
week about our businesses.
And this has been a complete game changer for me.
I met her when I was first starting my business.
She was also starting her business, and we were in a group coaching
program together and we ended up becoming mastermind partners or
accountability partners.
And this was years ago, and we have been checking in with each other
every single week.
This has helped me stay accountable and stay motivated so I don't have
to completely rely on my own self-discipline.
While yes, it did take self-discipline to start my own business and
decide what I want to do and start putting content out there and
building up my business, it is a lot easier to have this
accountability partner to check in with every single week.
And if one of your financial goals is to invest in the stock market,
to get started with that, I have a group coaching program that I am
doing.
So you'll be able to surround yourself with people that are
like-minded, that want to achieve financial goals, that want to invest
their money, get it working for them.
I have a free masterclass that will give you more detail about this,
so I will leave a link below in the description.
Not only did I have a mastermind partner, I was surrounding myself
with other people who were financially successful.
I have my mentor who was investing or is investing in real estate and
is very successful with that.
So I talk to him often.
I had a previous boss that invested in real estate.
I would talk to him often and I would try to to just gravitate more
toward people that were becoming financially successful or working on
their financial goals.
Hopefully you found this video helpful, and if you did, please hit
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Thanks so much for watching.
I'll see you in the next video.