Habits of the Rich. For over 20 years we have studied the habits of wealthy people. It has been proven through various research that wealthy folks, like the Millionaire Next Door, have certain habits and character traits. If only this knowledge was taught in school, we may have many more millionaires around enjoying a life of financial security.
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I’m Talking About Self Made Millionaires
This is meant for those of us with humble beginnings and typical middle class jobs. No princes or Kardashians. I am not that interested in the actor, sports star or tech mogul that made tons of money. Most of us will either not have the combination of luck, drive, timing or skills to be famous and wealthy in these ways. Most of us with solid middle class employment or small businesses have a shot at building some wealth by harnessing the powerful habits of the rich. So what do they do that most people do not?
“People do not decide their futures, they decide their habits and their habits decide their futures.”
-F. Mathias Alexander
1. Make Prudent Investing Priority
We commonly hear the phrase, pay yourself first. The main concept is that there will always be demands and desires for use of our cashflow each month. We all know how easy it is to spend it all. Every wealthy person I ever met made regular investments a habit, priority and mainly automated. Habits of the Rich
I added the word “prudent” because most rich people do not grow large sums of money with some crazy new investment idea that is super risky. Typically they are adding to diversified quality investment accounts, buying real estate or other quality small businesses.
They make investing a habit and priority because they realize they will never save or make enough.
Making investing a priority is accompanied by sound financial management: Wealthy individuals are mindful of their finances and practice good money management. They create budgets, track their expenses, and make informed investment decisions. They understand the importance of saving and investing wisely to grow their wealth over time. Habits of the Rich
2. Continuous Learning
Successful people are dedicated to lifelong learning. They constantly seek new knowledge and skills to improve themselves. And this learning is also connected to a curiosity about potential investing opportunities. Investing is about learning skills, learning about markets and understanding what various investment vehicles do. It is also about understand risk reward calculations that you can manage in your own decision making process. They read books, attend seminars, take courses, and surround themselves with people who inspire and challenge them intellectually. Habits of the Rich
3. They Know What Assets vs. Liabilities Are
Discipline and Hard Work: The rich understand that success doesn’t come overnight. They are willing to put in the effort and work hard to achieve their goals. They have discipline and a strong work ethic, often going above and beyond what is expected of them. They are willing to make sacrifices and stay committed to their endeavors. Habits of the Rich
4. Delayed Gratification Muscle
Self made wealthy people know how to practice delayed gratification. They need this trait to get through the years of sacrifice and struggle that often are requirements to building wealth. We need to harness the ability to tell ourselves no at times. Most people love the thrill and endorphin rush of buying something new, BUT make sure it is a sound financial decision that is within your budget. Ensure you are not stealing opportunities from your future self. Habits of the Rich
5. Networking and Relationship Building
Successful people understand the value of building relationships and networks. Warren Buffett famously talks about how it takes 10 years to build a reputation and can take 10 minutes to destroy it. No one is perfect, but we need to develop relationships built on mutual trust, cooperation, understanding and support. I truly believe the more we do this the better off we are.
They actively seek opportunities to connect with others in their field and beyond. They attend industry events, join professional organizations, and build mutually beneficial relationships. They leverage their networks for support, advice, and potential business opportunities. Habits of the Rich
Bonus (discipline and work)
Each persons True Wealth journey is unique to them, and that is why Money Vikings set forth to present a multitude of ways to achieve your True Wealth. This looks different for each person in alignment with their highest values. But as a bonus, to build wealth it typically takes some old fashioned discipline and hard work.
Yes, it seems cliche, but it is just true. Building a business, holding down a quality job, setting up automated systems for success, seeking new opportunities all takes a certain amount of discipline, work and follow through: The rich understand that success doesn’t come overnight. They are willing to put in the effort and work hard to achieve their goals. They have discipline and a strong work ethic, often going above and beyond what is expected of them. They are willing to make sacrifices and stay committed to their endeavors. Habits of the Rich
Also check out the top 6 traits of millionaires according to Investopedia.