Are You Patient Enough To Become Wealthy?

As I have mentioned before, the problem of how to become wealthy isn’t that you don’t know what to do, it’s that you aren’t doing it. The road to wealth can be found in three simple steps:

1. Start saving early
2. Spend less than you make (save a minimum of 10%).
3. Invest the money you don’t spend.

That’s it. No secret formulas or hidden gems. If you want to be rich, it’s as simple as that. Of course, there is some tweaking that you have to do. You can’t invest in any old thing, but even that isn’t difficult to figure out and you already know where you should invest the money (401k with matching funds, Roth IRA and stock index funds being the most obvious – see, you knew that one, too).

So the question begs, why aren’t you doing this? For a lot of people, it’s simply a lack of patience. Patience is a quality that if you don’t have can get you into a lot of financial trouble. Here are some of the ways that patience can help your finances:

It helps forgo instant gratification

One of the biggest problems in wealth creation is getting yourself into credit card debt. In many cases, this is simply an issue of wanting to buy things before you have the money to purchase them. By having the patience to wait until you actually have the money saved before you purchase things, you go a long way in helping yourself create wealth.

It helps you save

If you want to get a good price on a product, often you have to wait. The newest technologies will always be the most expensive, but if you can be patient and wait a while until these become more mainstream, they will become cheaper and you will save a lot of money. Being able to do this is often the difference between having enough money at the will help ensure that at the end of the month you can save 10% of your take-home pay.

Patience helps avoid “get rich quick” schemes

If you don’t have the patience to build your wealth over time, you will likely try to build it quickly. Get rich quick schemes are not a very good way to build wealth. By being patient and understanding that most people build their wealth over a long period of time and not by winning the lottery, you can can the necessary steps to build a solid foundation to build wealth.

It helps you stay on your wealth-building plan

Part of building wealth is coming up with a plan. As mentioned earlier, a plan doesn’t have to be complicated, but it does take time and patience to implement it. By having the patience to plan your strategy over a long period of time and continue with it is an important aspect of creating wealth.

Patience helps you look long term

No matter how well laid out your wealth building plan is, there will be instances where it doesn’t go according to plan. Stock markets go up and down and when they go down you need to have the patience to realize that over the long term they will go up again. If you lack the patience and pull your money out every time a stock starts to fall, you will end up being a lot less wealthy than if you keep a long term and patient view of your investing.

It is certainly not easy to follow these steps and be patient in a society where instant gratification and making money quickly is glorified. Unfortunately, instant wealth is not how most people create it. If you want to be wealthy, one aspect of your life that you should spend time working on is your patience.

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10 Responses to Are You Patient Enough To Become Wealthy?

  1. Minimum Wage says:

    I earn minimum wage and started out with student loan debt.

    Do you seriously expect me to be able to spend a minimum of 10% less than I make???

  2. pfadvice says:

    I would expect that you realize that your current situation is not sustanable long term so you are taking steps to try and improve it so that you are able to.

  3. Ryan says:

    “Spend a minimum of 10% less than you make”

    What does that even mean? Do you mean “Spend a maximum of 10% less than you make and save the rest”?

  4. pfadvice says:

    It means try to spend no more than 90% of your take home pay and whatever you don’t spend, invest.

  5. savvy says:

    #2 is worded in a way that is confusing. I think what you mean is spend no more than 90% of your income and save the rest or save at least 10% of your income.

    Minimum Wage – in order for you lifestyle to be sustainable, you need to live below your means, and that means spending less than you earn, and saving at least 10% of your income. If that’s not possible for you right now, you should look at either increasing your income to keep up with your lifestyle or scaling back your lifestyle, or possibly a combination of the two.

  6. Wes D. says:

    My wife and i have almost 90k in savings but no 401k or iras. We are thinking about setting up roth iras but we don’t wish to lose money investing. Do you have any information on how to invest with a roth ira?

  7. Jason says:

    Wes D, if you are concerned about risk in investing, my best advice is don’t go it alone. Check your local bank to see if they have a financial advisor. Since you are a customer of the bank they likely won’t charge you for her/his time. Also, if you have insurance through State Farm or Allstate ask about their financial advisors (I know these 2 have them, not sure about other insurance companies).

    The financial advisors can give you options that best fit your individual needs and can help you choose the investments that best minimize the risk.

  8. savvy says:

    I would recommend NOT using an insurance agent as a financial adviser. My State Farm agent often tries to sell me and my husband variable annuities, and also has a quote “the higher the load the higher the expected returns”. He knows less about investing than we do, and is merely a sales person pushing their high-cost, mediocre investment products.

    I would recommend finding an adviser who works based on a flat fee, not one who makes a commission.

  9. Teri says:

    #3 is probably a HUGE key here. You don’t know how many people, both rich and poor, that I have seen set back financially by Get Rich Quick Schemes. In my industry as a CPA it is mind blowing the number of schemes we see, that seemingly intelligent people fall for. The ability to see through these schemes is invaluable. Usually, like you say, impatience is a big key. Just slowing down and being patience pays off in the long run, indeed.

  10. Justin says:

    I had 25K in savings and recently quit my job because it was not paying enough and the demands were nuts!

    Purchased an automated online business that earns around $900/month for $16,000. It’s a patience game but it appears to be working. I bought the business because I am $31K in debt after graduating from school!!

    I also live on my own and need the cashflow desperately. Thinking about applying for a job because I am a little short every month. :-/

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