If you think about it, recent years have made us mentally, physically, and emotionally better
equipped to handle what life throws our way. We’ve become stronger as we’ve learned to move
through resistance and challenges in the past two years. As we turn the page to a new year,
abundance awaits us. All we need to do is to move toward it.
How can I build wealth in 2022?
Wealth comes to those who create and integrate four primary habits into their day-to-day. We
hear news every day about startups taking off, finances skyrocketing, and the stock market rising unexpectedly, making its shareholders wealthy and overjoyed. Why does it only come to certain people? Let’s first talk about how wealth is truly created.
Traditional wealth management firms frame the road to wealth as a steady increase year over
year. The reality is, the true journey to wealth comes in peaks and valleys. Some years you’ll
generate massive returns upwards of 30%, other years you will see a stagnant increase or even
a slight decrease.
Take, for example, the pandemic. It turned 2020 into a year of unprecedented events, not the
least of which was the swift crash and then record-fast recovery of the stock market. People
wondered why the stock market stayed strong through the pandemic while the labor market
struggled and supply shortages loomed. It’s simple.
The stock market is a forward-thinking being. It breathes and moves at the pace and perspective of what the future holds, not of what current conditions reflect. All market wins come from a long-term approach. It’s like raising children. When they’re newborns, they require a lot of patience. Sometimes they smile at you, sometimes they pee on you. Doesn’t it feel like that specific phase will never end? Then, before you know it, you’re sending them off to college as you look back and wonder how they got so big so fast.
The case is the same when it comes to building wealth. It feels like a slow and steady process
in the beginning. You win some, you lose some, and even when it feels like nothing is
happening in the moment, there’s a compound effect taking place in the background.
In fact, any type of success compounds as a result of small steps taken consistently. If you
haven’t read the book, The Compound Effect by Darren Hardy, I’d highly recommend putting
that on your reading list for the year.
It’s the small steps up the mountain that get you to a point where you can look out over the
edge. The key is taking the right steps in the right mindset.
Here are 4 habits to help you create wealth as you welcome the new year.
- Approach finances with an investment mindset vs. savings mindset.
When you’re saving money, don’t just “save” it. Think of how you can make your money work for
you by considering different investment opportunities. Even if you don’t want to invest your
money right away, it’s still a necessary paradigm shift to help you acquire a growth mentality.
You’ll be less inclined to spend your savings into something that doesn’t pay off in the long term.
You’ll also become more inclined to notice and welcome investment opportunities as they come
- Live Below Your Means
Prioritize your life. Spend money on those priorities and invest the rest. Living below
your means doesn’t mean that you can’t have fun or enjoy your life as you embark on a journey
to build wealth. No. It means you must learn to create a budget, manage cash flow, and follow
through your plan. The only way to get to the next level is through capital, and if you’re
spending all your money that comes in, you won’t ever get there.
- Learn To Manage Emotions
Don’t chase trends – the things you heard about today will be yesterday’s news tomorrow. For
example, investing in tech or crypto when others start talking about it. If others are talking about
it, that probably means you missed the boat. Use rational rather than excitement as your
motivator to investments.
- Practice An Abundance Mentality
Don’t live in a scarcity mindset, don’t let fear drive your decisions in life. When you look at life
through framed glasses, you become blind to the other possibilities around you. The fact is,
there is an abundance of money to be made, and there are abundant opportunities waiting for you in
the world. There is an abundance of life. Starting thinking as such. Don’t know how to start?
Practice this meditation to help you pivot your mind as you walk into 2022 and get after the
things you want without fear of something going wrong.
Much like planting a tree, building wealth takes foresight and patience. Down the road, the actions you take today can provide great benefits tomorrow. If you’re interested in forming a simple strategy to create wealth in 2022, take advantage of Four Points Wealth free one-on-one consultation. We’ll personalize your financial strategy and set you down the path toward financial freedom. And as always, feel free to reach out to me and bring any questions you may have on how to get ahead on your financial goals.