This is a sponsored post by Fundrise. All reviews and opinions expressed in this post are based on The Werk Life’s personal view.
Money isn’t everything, but it can certainly be used as a tool for options, peace of mind, and freedom. But getting to that level of money, and growing your wealth is no small feat. Today, we’re sharing some of our favorite personal finance tips to help you improve your relationship with money and continue to level up your personal finance game in the future.
Here are 5 money habits to grow your wealth.
1) Be in control
When it comes to your money, you need to be in control. This means having a thorough understanding of your personal finances:
- How much do you earn?
- What are your monthly and yearly expenses?
- How much money do you have saved?
- How much money is invested for the future?
- How much debt do you have?
These are just a few of the many questions you should know the answer to when it comes to your money. It’s a common feeling to get stressed about our personal finances, and thus avoid them all together. But in order to grow your wealth, facing your current financial situation head on is what’s going to take you to the nevel level.
Get into the habit of reviewing and studying your personal finances. Understand what your earning and spending habits currently look like. Set goals. Create a vision. Get clear on how your situation currently looks, and how you want it to look 1, 3, 5, and 10 years from now.
2) Diversify your income streams
Never put all your eggs in one basket, and when it comes to wealth that means ensuring you have several streams of income. Relying on just one source of income (like a full-time salaried job, for example) reduces your financial stability in the event of a sudden job loss or layoff.
Having multiple streams of income helps you diversify how you make your money, allowing you to spread your wealth and reduce risks of sudden income fluctuation.
Easier said than done, of course. But it’s definitely possible. Start by building out two income streams, and eventually aim to grow that over time. Maybe that’s starting a side hustle on top of your current job, maybe it’s creating passive income through a rental property, or maybe it’s selling your artwork online.
With the internet and access to millions of people with a click of a button, there’s no shortage of opportunities to create additional income. Explore what options might work for you, and get started with some trial and error.
3) Invest your money
Either you work for your money, or your money works for you. Investing is a key component of building financial wealth through the magic of compound interest, and there are multiple ways to get started. Whether you want to start investing in the stock market through ETFs or mutual funds, or if you’re interested in real estate investing – understanding the benefits and risks of investing is crucial.
The good news is that nowadays, investing doesn’t have to be nearly as intimidating as it once was.
Fundrise is a real estate investing platform that helps investors of all levels get started in real estate investing. With over 210,000 active investors, Fundrise is changing the way we can invest with smarter diversification and lower fees. In fact, the average annual return for all Fundrise client accounts was a remarkable 22.99% in 2021! To learn more about Fundrise, you can head over to this page.
4) Constantly be learning
Learning doesn’t have to stop once your formal education is over. The only way to prioritize your personal growth is to make an effort to keep learning new things. Your financial literacy is especially important if you’re wanting to improve your current financial situation.
Read books, study blogs, watch videos, and absorb as much valuable information as you can that teaches you how to manage your personal finances. Saving, investing, making money, and growing your wealth start to come together the moment your action plan includes daily learning.
5) Practice a positive money mindset
Your journey to wealth will only be as strong as your current relationship with money. Practicing an abundant, positive money mindset will put you way ahead of the curve when it comes to building and sustaining your wealth.
“Your beliefs become your thoughts, your thoughts become your words, your words become your actions, your actions become your habits, your habits become your values, your values become your destiny.” – Mahatma Gandhi.
A truth that certainly applies to your beliefs about money, this summarizes the importance of having a positive money mindset. This means ditching the scarce and limited views on your personal finances, and making room for abundant thinking.
Interested in more money management tips? Check out some of our other articles on money:
- 11 Financial Habits You Need to Practice
- 5 Reasonable Steps to Pay Off Debt Fast
- 5 Things I Stopped Buying to Save Money Fast
