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5 Wealth Habits All Successful Entrepreneurs Share

5 Wealth Habits All Successful Entrepreneurs Share

Habits are what make us who we are. Exceptionally successful entrepreneurs have learned to use the power of habit to their advantage. That is why they’re able to separate themselves from the rest and lead their business ventures to success.

One of the areas they channel the power of habit towards is how they handle wealth. By developing some positive habits towards wealth, making and managing money successfully comes very easy.

Some of the world’s richest people even have hordes of titles dedicated to studying the habits that made them successful managers of wealth. Warren Buffett and Bill Gates all have habits that make them insanely successful. This article will be sharing some of the habits that successful entrepreneurs embrace to keep their wealth increasing.

1. They Make Reading A Habit

First, this is the fundamental habit that every successful entrepreneur all share.

For those wondering what reading has to do with wealth, it’s true that the secrets to success are hidden in the pages of books. Warren Buffet says he reads about 600 pages every day. With so much knowledge on wealth management, it’s little wonder the billionaire investor keeps growing.

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To become better at managing wealth, start by picking up a book to read every other day. Business Insider shares a list of books Warren Buffet recommends everyone should read about wealth and money.

Warren Buffet is not the only successful entrepreneur who reads. Elon Musk taught himself rocket science through reading which, to be honest, sounds harder to learn than managing wealth. Mark Zuckerberg, Bill Gates and Mark Cuban are other examples of successful entrepreneurs who love to read.

2. They’re Not Shy To Bargain For The Best

While the average person thinks it’s not worth haggling over price, successful wealth managers think otherwise.

Bargaining is simply in the blood of highly successful entrepreneurs.

“Apart from making stupid money mistakes, not wanting to get a good price from everything is a quick way to go broke,” says Yasir Khan of WealthKept.com.

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3. They Diversify Their Income

It’s a common statement that the average millionaire has several sources of income.

Income diversification is the secret to the wealth of many successful entrepreneurs. They understand that you can only make so much from running one business. Google’s parent company, Alphabet, has many businesses under it and acquires continues to acquire many. Facebook, Apple, Samsung and almost all of the world’s leading companies and entrepreneurs own several businesses.

Before running for president, Donald Trump owned over 500 businesses around the globe.

To keep wealth coming you have to look into other sources of income other than your primary job or business. One way to start diversifying your source of income is by converting your earnings into profit-yielding ventures. Live off the profit and reinvest the capital.

4. They Invest

Invest first, save, then spend.

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That’s one of the main ways successful entrepreneurs get to where they are. It might not be comfortable at the start, but from constant practice and by employing discipline along the way it becomes habit.

By forming an investment-focused habit, anyone can build wealth easily. It compounds. Instead of spending away all your earnings, you put some away till it grows into a sizeable amount of money. It should be separate from your emergency savings. Once you’ve amazed a sizable amount of money, reinvesting it into something like real estate, shares or government bonds will help you create passive income.

Passive income is one way to build sustainable wealth. By cultivating the habit of investment, successful entrepreneurs are able to build several sources of passive income.

5. They Love Numbers

The human mind is easily inundated by figures and numbers. This makes looking at our accounts and tracking how we spend difficult. Successful entrepreneurs, however, know that they must make crunching numbers a habit.

If forming a habit of breaking down numbers doesn’t come easy to you, using financial management apps like Mint or Level Money, to keep track of your spending is another option.

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6. They are Frugal

Frugality is a habit that’s common among the super-rich.

Being wise about your money and prioritizing your spending is a key trait. Highly successful people don’t spend on impulse nor do they spend just to impress others. They may actually live well below their means.

This habit makes it possible for them to invest their money into things that will accumulate more wealth for them.

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

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