Building wealth is simple.

It doesn’t require luck, genius, or special connections.

In fact, it’s so simple it can be explained in just two sentences:

  1. Make more than you spend and invest the difference wisely.
  2. Develop simple daily habits that result in wealth accumulation.

I know… you’re probably a little disappointed.

You wanted something new, different, and clever – the missing ingredient that has held you back and will produce breakthrough results.

Instead, I give you something dangerously close to what Grandma would have said.But listen to the voice of experience.

It’s timeless wisdom that has been proven over the centuries, and will also probably work for you (if you just put it into practice).

In short, if you want wealth in this lifetime with the highest probability of success, then these two sentences contain the essential wisdom you need to know.

The reason so few people achieve wealth is because they don’t adopt habits that lead to wealth.

Procrastination is the single biggest wealth killer. You plan on getting around to it someday. You know what you should do but there is always some other priority. The kids need braces, the car needs repair, the kitchen needs remodeling or your too busy working.

Action is where the rubber meets the road. It’s one thing to know what to do, and it’s something else entirely to get it done. That’s why habits are so critical.

The reason good money habits are essential is actually scientific and results from the mathematics behind how money compounds to grow into wealth.

Small changes done over long periods of time can create massive results. It’s an easy path to wealth.

Here’s the formula for how this works:

[(Small, Smart Choices) * (Consistency) * (Time)] = Wealth

Habits are the easiest and simplest way for you to cross the bridge between how to build wealth using the simple formula above, and actually doing what it takes to achieve the goal.

You don’t have to intellectualize the process or overcome massive obstacles. You don’t have to get ready to get ready.

Instead, you just start today by adopting one habit that serves your wealth goals. Here are a few, to begin with

  1. Set aside an amount every month for investing
  2. Set aside some money for contingencies
  3. Review your expenses and cut down on the unnecessary ones.
  4. Pay your credit card bills on time
  5. Spend half hour every month to learn about different investing options or check with an financial advisor

Just pick one habit and start today. Practice the habit until it becomes permanent, then pick another habit and do it again. Then another and another until you can see your wealth grow.

This article was originally published as a guest post on, in 2011 . Above is just an excerpt of it.