Discipline to Save
We are all limited by the number of years we have to be able to run around actively. A twenty-year-old today probably has another 20–30 years of active working life left. This is to say, as we age, the physical labour we can offer reduces. This period is when we can set the foundation of our wealth.
The moment you have decided to build up your wealth then you should take action towards making it happen by starting a dedicated savings account. Irrespective of the amount you decide to save periodically, your savings should be automated to make it easier to achieve discipline and consistency.
Now in picking a savings account, it is important to find one with zero or minimal fees and with considerable returns. Your saved up cash should not sit in a bank, it should work for you to generate returns. For instance, if you saved up 1M Naira in 2017, at 10% interest per annum and one year later, the money should have increased by itself to 1.1M Naira. This is how you grow wealth, steadily.
Discipline to delay gratification
If you look around you, you’ll probably notice that we are surrounded by advertisements that are aimed at making us spend money on things we do not need. The new iPhone, the new cars, the new designer labels, the new shoes…the list is endless.
If you have a goal of becoming wealthy someday, you should learn to postpone buying these things until you have well enough. This is not to say you shouldn’t enjoy some life’s little luxuries. The point here is that you could always delay buying luxuries till you achieve your important money goals. You should learn to live way below your income.
Or better, ask these questions: Do I need this item to survive? Does this item bring me additional cash? Am I buying this to impress my friends?
Discipline to ignore the Joneses
The Joneses are all around us. They are those families and friends who spend money just to impress others. Our neighbors with all the flashy toys, our friends who buy the latest gadgets to show off but are barely able to pay their rent.
To be like the Joneses is to spend your little savings on what the Joneses are buying. This never-ending race to be like the Joneses always leads us to make poor financial decisions that are detrimental to wealth building.
When making any purchasing decision, it is important to ensure we‘re not trying to live life as dictated by others.