Habits make up 90% of what we do every day. It only makes sense that good habits lead to good things and bad habits lead to less than desirable outcomes. The habits the wealthy establish in their financial practices not only help them acquire wealth, but also allow them to keep the wealth they have. They have a few habits in common that keep them in the upper elite when it comes to money.
Those who have a considerable amount of money know they are the reason they have the money in the first place. As a result, they make sure they are taken care of in the long run so they can continue to earn more money.
It may seem there is never quite enough money to allot some for yourself. However, by taking money out first and investing it in a place where it can earn passive income for you (in the form of interest, real estate, or whatever else you choose), you are ultimately making more money for yourself for years to come. The best strategy is to take 10% off the top of your earnings and reinvest it into something that allows the money to grow even more.
Saving money is not as much about accumulating a large amount of money quickly, it is more about getting into the habit of saving money and watching it build over time.
Habit #2: Become Frugal
We often associate the term “frugal” with people who deny themselves anything and everything to save money. This doesn’t have to be the case, though. Those who are smart with their frugality simply cut costs in areas that aren’t as important as other areas.
For example, maybe buying the name brand of every food product is not as important to you as taking an annual family vacation. Therefore, you should buy the cheaper brands of food so you can spend your money on something that’s really important to you: the family vacation.
Frugality is a matter of prioritizing your expenses. Analyze each expense and make sure you are spending your hard earned money on the things that are truly important and help you reach your long term goals.
Habit #3: Look After Your Business
Recognize your business is the way you make money. Treat it with respect. Even if you don’t like your job, you should recognize the fact it pays your bills and allows you to save for the future.
Make sure you have a vision for where you want your business to go. This gives you the momentum to move further along to your ultimate goals. Having these anticipated milestones gives you a target to aim for and reminds you of exactly what you are doing with your business each day.
Habit #4: Take Educated Risks
Making money can be a risky business, but the wealthy recognize the risk factors that are involved to achieve their financial objectives. The difference between someone who is just a risk taker and someone who takes educated risks is the ability to recognize opportunities that have an upside potential that far outweighs the potential loss.
Learning to take educated risks comes as a result of studying situations closely and then having confidence in your ability to judge correctly. Do as much research as possible to understand the exact risks, as well as the large potential for payoff. Then take the risk.
Habit #5: Give Back
One great thing about money is the ability to help others with it. In addition, giving back follows the principle: the more you give, the more you receive. How is this possible? Most believe the more we give away the less we have. Instead, giving back creates a bit of a paradoxical effect.
Wealthy businessman Junior Murchison once said, “Money is like manure, if you spread it around it does a lot of good. But if you pile it up in one place, it stinks.” Giving money away creates a bit of good karma. It also reminds your subconscious there is enough money for everything. A poverty mindset seeks to hold on to every bit of money possible, a wealthy mindset seeks to give it away and reap those unique rewards.
Habit #6: Invest in Yourself
Millionaires make investments on themselves. Why? They recognize the fact that by making themselves better they increase their potential for income. They often seek out opportunities to learn and grow as a human and as a businessman.
When you are open to learning new information in this rapidly changing economy, you understand someone is doing things better than you. This leaves plenty of room for growth. This can also be applied in your network of peers. If you see someone who does something better than you, ask them to teach you. The potential of this investment is multiplied many times over.
While the wealthy may not “have it all figured out,” we can learn a considerable amount simply by studying the habits they use when it comes to their money. By utilizing these habits in our own life, we can also potentially find a path to great financial wealth.
No comments :
Post a Comment