Wealthy people are not better or necessarily even smarter than those with less money. Rather, it is commonly their daily habits and mindset that enhance their finances and separate them from the rest.
While other factors may come into play when determining wealth, you can emulate these nine habits of the rich to grow your own wealth:
Set goals
When you set goals for yourself, you increase your motivation and determination to accomplish tasks. You do need to still have a strategy when creating goals though. Make them genuine and meaningful. Most importantly, they should be S.M.A.R.T. (Specific, Measurable, Attainable, Relevant, Timely) Why is this important? Individuals who write down their goals are much more likely to achieve them. Having a vision keeps you focused, which is why wealthy people are constantly creating goals for themselves. Wishful thinking won’t get you far; goal setting with follow-through, however, will. For more tips on goal setting, check out this article by Certified Executive Coach, Norma Reid.
Live within your means
Wealthy people are great at managing their money, which is why they are in a positive place financially, to begin with. On the other hand, it does go a bit beyond basic money management. Budgeting and tracking expenses along with having a spending plan is the best way to ensure you are living within your means. Wealthy people know they need to pay themselves first; they save the recommended 20 percent of their income.
Some ways you can be more sensible with your money include but are not limited to: driving a humble vehicle and avoid spending more than 5% on auto loans; investing in a retirement fund; prevent credit card debt by paying your balance in full each month; and creating an emergency fund made up of at least six months of living costs.
Read instead of watching TV
Successful people use their free time for productivity and personal development instead of in front of mindless television shows. Consider picking up a book and teach yourself a new skill, particularly one that will help you earn more money. Have a long commute? Download an audible version so that you can keep learning even while on the road.
Surround yourself with the right people
Negativity can really bring you down, and the same can be said for those who are not forward-thinkers. The rich tend to hang out with individuals who are hard working, self-sufficient, and persistent because they are like-minded. Hang out with the people who will influence and create a positive impact on you.
Wake up early
Waking up early creates more opportunities for you. By waking up early, you are not only able to accomplish more, but you also establish some personal time, which is important for maintaining productivity.
Network and look for opportunities
Wealthy people don’t wait for opportunities to come to them; they create them for themselves. Through networking, you produce valuable relationships and favorable circumstances for your career. Putting yourself forward and meeting new people also helps to keep you motivated and always thinking of new ideas. Those who are successful know the value in networking and you should too.
Take care of your body and mind
Success and wealth involve more than wise investments and big risks; it is also about taking care of yourself. Dedicating time to de-stress through exercise and meditation will aid in the maintenance of your emotions, which, as you can understand, if you allow getting out of control may ruin opportunities for you. When overwhelmed, we tend to make rash decisions. This can, therefore, influence the decisions we make in our finances. Stay on your A-game by keeping your mind healthy and in check.
Don’t gamble
Instead, invest. While it is not impossible to win money from a lottery ticket or the slot machines, you are much better off putting your money into something that is more likely to pay you back. As long as you are not going into it without a strategy. investing in stock or bonds can be quite the financially friendly option.
Track your net worth
Regularly analyzing your net worth is one of those tasks you should do to align your financial goals with your efforts. Wealthy people know this and not only evaluate it; they grow it every year. Need advice on how to improve your net worth? You may find this article helpful.
If you really want to be prosperous, never give up. Start generating multiple streams of revenue for yourself and set yourself up for success by always studying and improving.
Are you following any of the habits above?
Photo: Andrew Gumbel
. It is a comprehensive study of 177 millionaires and the daily habits that drove their wealth. Definitely pick up copy and give it a thorough read.