Working in skilled trades doesn’t guarantee a lifetime of riches, but there are habits that can help skilled tradespeople hold onto their wealth. With the right mindset and financial habits, the working class can become prosperous and break the cycle of living paycheck to paycheck. In this blog post, we will be examining ten habits of wealthy people and how they can relate to those in the skilled trades.
1. They Invest Early and Consistently
One of the most critical skills that wealthy people possess is the ability to invest early and consistently. Investing in stocks, real estate, and other investments is essential to building wealth. One of the quickest ways to start investing early is to contribute to a 401(k) plan. Consistently putting money into your account throughout your career can lead to significant growth over time.
2. They Live Below Their Means
It’s no secret that many wealthy people live frugally. Living below their means allows them to save money, invest more, and comfortably make sustainable decisions. It’s not about being stingy but rather spending strategically.
3. They Value Education
Education is another key element that successful people focus on. Successful people put time and money into knowledge and learning opportunities. Upgrading skills through continuous education in the skilled trades is a surefire way to sustain and even increase your income.
4. They Budget and Track Their Spending
Budgeting and tracking spending are habits of the wealthy. They have a clear understanding of their finances through careful planning and paying attention to their expenses. As working-class individuals, it may be difficult to make ends meet, but being meticulous about money management can help make sure that you don’t fall deeper into debt.
5. They Seek Out and Take Risks
Risk-taking is a commonly overlooked aspect of being successful. Wealthy people know that sometimes risks are necessary to achieve a greater reward. At times it pays to take calculated risks that might result in more significant opportunities.
6. They Have a Diversified Portfolio
Diversification of investments is a crucial rule in the financial world. Wealthy people invest across asset classes to minimize their risk and maximize their profit. For a working-class person, it may seem daunting to begin investing and diversifying assets, but with careful management and advice, it’s possible.
7. They Reinforce Their Network
Successful people recognize the importance of relationships, both personal and professional. Networking and building relationships with skilled professionals can help secure better job opportunities as well as other benefits that can be quite lucrative.
8. They Make Their Own Decisions
Making independent decisions is a quality that sets the wealthy apart. They don’t rely on others to dictate their choices or guide their path. Making decisions based on your own intuition and independent research can lead to success in the trades as well.
9. They Are Entrepreneurial
Entrepreneurial skills are vital to many wealthy individuals. Starting your own business or side hustle is a sure-fire way to earn additional income and can lead to professional independence.
10. They Seek Out Tax Experts and Advisors
Lastly, wealthy people seek out help when it comes to taxes and other financial matters. The tax code is complex and ever-changing. Professionals in the field can help maximize benefits while minimizing liabilities.
In conclusion, with the right mindset and habits, anyone can enjoy financial success, regardless of their occupation. Skilled tradespeople can benefit from adopting the habits of the wealthy. These habits include investing early, living below one’s means, valuing education, budgeting and tracking spending, taking risks, having a diversified portfolio, reinforcing one’s network, making independent decisions, being entrepreneurial, and seeking out experts and advisors. The bottom line is that it takes hard work and dedication, but anyone can hold on to their wealth by adopting these habits.
> For one on one or group assistance with personal finance, STR recommends that you check out the following resources:
> Inaccuracies with Bureau of Labor Statistics (BLS) data: Many of our blog posts will quote BLS data. SkilledTradeRescue.com has been able to identify that data quoted specifically for Skilled Trades can be as much as 50% LOW in many USA labor markets. For more information on these inaccuracies please visit the STR national labor survey page at the link below. On this page there is a video containing the latest information at the top of the page as well as other information. If you currently work in skilled trades, PLEASE consider participating in our national labor survey.
