Little Known Facts that Affect Your Wealth - Pawngo

How much financial education did you receive during school? If you?re like most Americans, the answer is ?not enough.? It?s why so many of us are deep in consumer debt despite making respectable livings. If you want to make changes to your financial present and future, take the time to understand these four facts that wealthy people understand ? and the rest of us probably don?t.

1. Why ?Pay Yourself First? Works

The concept isn?t little known, but the idea behind it seems to have gotten lost in the limelight. ?Pay yourself first? means making savings deposits and killing debt on payday, before you pay any other bills, to make sure you?re building your wealth before building somebody else?s.
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Most people think this works because it gets those budget items paid before you?re tempted to spend on other things. This is true, but that interpretation leaves a lot of people skipping this step because they?re afraid they?ll run out of money if they adopt the practice.
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Thing is, the plan still works if you run out of money. In fact, it works best?when that happens. The idea is to put yourself in a position that forces you to get creative and resourceful in order to pay those other bills. This changes your relationship with money and puts you on the road to real wealth.

2. Being Wary of Tax Credits

Admit it, you love those big tax refunds every spring. Everybody does, and many families count on it as part of their annual cash flow. Tax credits like those for student loans, mortgage interest and child care can do a lot to increase that refund.
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But remember the refund is a refund. The feds aren?t giving you free money. They?re returning?money they borrowed ? at no interest ? from your paycheck every month.
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The better plan is to minimize deductions, and spending that qualifies you for tax credits. Put the money in an interest-bearing account so you have some money in April for miscalculations. Let that money work for you, not for the government, for the rest of the year.

3. Setting, Reviewing and Attaining Financial Goals

Businesses grow by setting attainable goals and regularly reviewing their progress towards them. If there?s a simple formula for financial success, this is it ? and yet very few families adopt this formula in their plans for building wealth.
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No matter what your current financial situation is, you will improve it if you set up short- and long-term goals and a plan of action to achieve them. Just be sure to check in every two weeks or so to review your progress, and to change the plan if your ideas fail to mesh with reality.

4. Taking Ownership

Studies of the wealthy show that the majority of the rich are self-employed and/or own a business. This makes sense, since you will grow richer if you?re in control of how much money you make. Punching a clock won?t do this for you.
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What will do this is taking ownership of how much money you make. If you?re in a good full-time job, find a second stream of income for your off hours. If not, try a variety of business models until you find one that works for you. When you own your income, you decide how wealthy you can become. If not, that decision is left in the hands of people more worried about their own wealth.

Source: http://pawngo.com/blog/hot-topics/little-known-facts-that-affect-your-wealth

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