1. Track your net worth
If you focus only on how much you earn, it’s easy to think you’re getting richer when you’re really not. Bringing in more money than you did last year, even at six figures,won’t help you grow wealth if you spend it all. But tracking your net worth – a term used to describe your assets minus your liabilities – puts your income in perspective. It helps you see how your liabilities change over time and how much money you’re actually banking. You can track your net worth manually, but there are also investment apps that can do it for you.
2. Track your spending
Ready to have a real financial awakening? Track your spending for a while. This habit takes a little leg work, but it shows you where your money’s going. Whether you choose to write down your purchases, use bank and credit card statements or special software, you’ll have nowhere to hide once you see how much you actually spend on food, entertainment, and extras every month.
3. Meet with a financial adviser/or tax planner
As your financial situation gets more complex, meeting with a fee-only financial planner who specializes in maxmizing investments may make you privy to some tip or strategy you’re unfamiliar with. On the flip side, meeting with an accountant or tax planner also has advantages especially with all the upcoming tax changes in 2019. Ideally, you’ll want to pay the smallest tax bill … without breaking the law. A tax planner can help you do just that, while also helping you minimize taxes in the future.
4. Invest in yourself
Maybe you want to invest in a new course to learn new skills, or perhaps you want a certification that could lead to higher pay and better job prospects. Sometimes, the best money investment anyone can make isn’t bonds or stocks but personal development. After all, what better tool do you have to grow wealth than you?
By reaching out and connecting with people in your niche, you keep your finger on the pulse of your industry and make valuable contacts. You never know when a new relationship can lead to an exciting new job prospect, partnership or career opportunity.
6. Focus on what you can control
Sometimes, life seems unmanageable and unpredictable. Even if you learn all you can about money, you can’t control what happens in the stock market or if the value of your home goes down. With so much completely out of our hands, many people wonder if there’s a point in trying to achieve financial health. But don’t despair: Focusing on what you can control absolutely leaves you better off. For instance, while you can’t change the ebb and flow of the stock market, you can control how much you invest. And, if you can’t control whether you get a raise at work, you can control how you spend your paycheck.