Most of us want to be millionaires. We want to stop struggling over bills and other expenses each month. But instead of wishing, why not develop an active plan that will take you closer to your goal. Remember the saying. If wishes were horses, beggars would ride.

So what are some of the wealthy habits we can develop to increase our wealth and to have more money than we have now? Stay with me while we examine this a little closer. Wealthy habits are exactly that! They are habits. So the first thing we have to do is to learn what they are and then practice them.

Here are 5 wealthy habits we can develop and perfect, starting right now.


1. Save at least 10% of what you earn. I don't mean sticking your money into a silly 6% p.a. savings account and forgetting it. I mean save your money with a purpose. Put your money into a bank account, but then periodically, move it away into a tax-free account that pays compound interest. These accounts are normally called Individual Retirement accounts or 401(K). Never mind the name. What's important is that you do this consistently.

2. Reduce Taxes As Much As Possible. One fast way to do this is to participate in your company sponsored pension plan. This will give you the same benefit as above, except that you have the added advantage of paying lower taxes because the money is taken from your salary before taxes. In addition to that, your employer will usually contribute a percentage to this money so that upon retirement you will get all this money, plus compounded interest. You should also consider opening an Individual Retirement Account. Just ask your local financial planner.

3. Spend Less Than You Earn. You don't have to live high and spending more than you earn in order to prove anything. Wealth is not how much you earn but how much you keep. As you do your budget each month, look for ways to trim your expenses and save a greater portion of your income. This will earn you compounded interest, and that is a good thing.

4. Get rid of all your debt. One of the best things I did this year was to retire one of my credit cards. That was one of the more pleasurable moments I had this year. Now, I am sure that you can do the same thing if you really want to. How many credit cards do you have? I know that this will take time, but you must start somewhere. Do you really need all these cards? If you do, it means you are spending more than you are earning. You must tackle that problem and fix it as soon as possible. Wealthy people are usually quite disciplined. Are you?

5. Stop All Cash Leakage. Cash leakage happens when you spend money on anything that you did not plan to and which cannot be deemed a dire emergency. This happens all the time and to most people. Your cash leakage may be food, entertainment, smoking habits, or others. Mine may be different but the end result is the same. Our lack of discipline causes us to lose the edge we so crave when it comes to financial independence and wealth creation. Where do you spend money on a whim? How much could you have put away into your compound interest bearing account?

6. Set a schedule to achieve all of the above. Face the truth. All of this will not just happen. You will have to actually do it. For example, you can start doing next months budget right now. When payday comes around, it will not overwhelm you. You will be prepared with your budget, so you'll know exactly where every red cent of your money is going. Here is another quick one. Look at what you earn and what you plan to spend. Which one is higher? If your expense is higher, cut it right now. I don't care what you have to do without, but cut it. Be it cigarettes, movies, fast-food lunch, your daily cappuccino, or your high-cost hair style. Just do it.

The most important things you can do to increase your wealth, and even become a millionaire, are the things that you must make a concerted effort to do. In other words, wealth does not just happen, because the habit of creating wealth will always take you out of your comfort zone. You are going to be uncomfortable for a while. Learn to live with that discomfort until you love it. It is for your own good!

Wealth comes from cultivating and practicing good habits that will either save you money, earn compounded interest on your money, or it comes from leveraging the time and efforts of others to create more cash flow than you could ever create on your own. I am excited for you. You are going to love being wealthier than you are right now.