The First Step in Building Wealth Is Discipline

Many times financial wealth hinges on being in the right place at the right time. Being ready to make the proper investments at the appropriate time and do the start-up when the market is right is not about luck.

Being prepared to take the right action at the perfect time. It is difficult to start building wealth from a level of poverty if you have zero money left as payday nears; it's time to make some real changes. You must either start saving money or making more money. Both techniques require discipline. I prefer making more money, but many times it's a combination of both to do the trick. Both methods require discipline.

Regardless of what we are trying to accomplish, discipline is essential to reach our goals successfully. Having discipline keeps us from becoming distracted or making impulsive decisions, which can thwart our efforts to achieve our goals. There are three key components to discipline--preparation, sacrifice, and accountability.

The primary hurdle to overcome when trying to practice discipline is our desire for instant gratification. Society indoctrinates the belief that we deserve whatever it is we want RIGHT NOW. This widespread mentality is what has gotten so many people into serious debt and will never lead to wealth.

So how do we develop discipline? How do we get ourselves out of the instant gratification mindset and start the path to a strong and healthy financial health? Following a few key principles can set us up for greater success and strengthen our discipline muscles.

Three Steps to creating stronger discipline

Step #1 – Preparation - Have a financial plan and a strong why

You cannot achieve any goal without knowing where you are going. First, create a detailed outline of your financial goals and why you HAVE to have them. For example, what if you have plans to start investing in real estate. Let's say, you need an extra $20k as a down payment to get the loan to purchase the type of real estate you'd like to invest in. What does investing in real estate mean to you? Is it your path to financial freedom? Is this how you plan to replace the income at the job that is killing you. Attach the end goal to our plan to motivate us to create a vigorous plan and to have the desire to stick to it.

Having a good, workable budget will help you get to where you are trying to end up. It does not matter whether we are trying to get out of debt or build wealth; we need a plan. Having a budget in place will guide us in all of your spending decisions. With a budget, you know how much you can or cannot spend in any given area, entertainment, eating out, shopping, etc.

Having a plan and a 'why' in place will help keep you from making poor impulsive decisions that will either slow down your wealth-building or hinder your ability to get out of debt.

Step #2 – Stop Trying to Keep Up with Everyone Else

For many people, this is the hardest step. It's easy to get caught up in what other people have and the vacations they are taking. When we are working hard to pay off debt or save for an investment, our long-term financial goals should be our primary financial focus. Seeing others appear to enjoy extravagant lifestyles can easily threaten our goals.

If you see people enjoying things you envy, let that be motivation to stick to your plan to reach your financial goals. Many of these people you envy will never achieve true wealth; they are typically the ones with the most debt.

To achieve our goals, we must let go of today's popular myth of who is rich and who is not, and we need to let go of trying to keep up with our neighbors and Facebook friends. Remember, if we are paying off debt or saving for an investment, this is a temporary situation. We develop our discipline by accepting some short-term sacrifices knowing that we'll have a long-term payoff later.

Step #3 Accountability, Rewards, and Consequences

Accountability means the fact or condition of being accountable or responsible for your actions and results. The best way to be held accountable is to have an accountability partner, someone who will tell you the truth and hold you accountable to your end goals.

If you don't have someone you can trust to hold you accountable, you could consider a financial coach. Whoever you choose, they need to be willing to tell you what you NEED to hear versus what you may WANT to hear. It is someone you can reach out to BEFORE making a large purchase or when you deviate from the plan. Check-in regularly with your partner so you stay disciplined and dedicated to your goals.

Discipline is a skill that gets better with practice. If we have developed the habit of doing only what we feel like doing or have an immediate gratification mindset, learning to discipline can be challenging. Self-discipline is a challenge and skill well worth developing. Master discipline, and the world is yours.