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15 Daily Habits Of Wealthy People

15 Daily Habits Of Wealthy People

Creating wealth is easier said than done. With so many books out there on financial success and making money, it is only reasonable that you should wonder why the one percent is still only one percent. Although I took some personal finance classes back in college, I found myself still struggling to make ends meet. At one point my wife and I couldn’t even afford to buy chewing gum as it wasn’t a necessary grocery item. In my desperation, I decided to embark on a personal journey to learn why my life was the way it was.

I wanted to know why some people appeared to have such ease in generating wealth and money.
What I found was astonishing. In this article I will share these tips with you and no they are not about will power. Without getting too much into the topic of money and inflation, I want to share 15 daily habits of the wealthy.

1. Challenge and question themselves

Wealthy people surround themselves daily with people who question their beliefs or what they know to be true.

Creating wealth is all about critical thinking. However if you surround yourself with people who confirm your perceptions of life, you may never find the inspiration to think outside the box. Hence the famous saying “Birds of the same feather flock together”. If a sheep wants to learn to hunt, it must surround itself with wolves.

This is easier said than done because as humans, we like our comforts. Most people only think as creatively as their filters or labels will allow. However if creating wealth is your goal, you must be open to the beauty of surrounding yourself daily with people who don’t think like you.

2. Live in the future

“I am living in the future, so the present is my past.” – Kanye West

People who have wealth or make a lot of money are not fortune tellers or wizards who predict the future; they are ordinary people like you and me.
One thing they do differently on a daily basis is attempt to forecast future trends.

Steve Jobs displayed this daily habit and it is often cited as the platform for a lot of Apple’s innovative products. Steve seemed to know what people would want even before they knew they would want it. Sometimes the products themselves didn’t even exist. When it comes to building wealth, a daily habit to practice is forecasting what challenges the future may bring. Like Warren Buffett once said, “Someone is sitting in the shade today because someone planted a tree a long time ago.”

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3. Outsource busy work

Creating wealth is all about time management. On any given day, you will surely accumulate a fair amount of busy work. How you manage these mundane but seemingly important daily task could determine how successful you become. Before you start each day, make a mental note of tasks that steer you off course and find ways to outsource those.

If you must do them, be aware of how much time in your day is lost to them.

4. Exercise daily

The most common excuse to not work out is that there isn’t any time to do so. People who are wealthy have the least amount of free time. But they are actually the least likely to use that excuse.

This is because they understand that their health and well being has no price tag.

5. Eat Healthy

This goes hand in hand with the exercise but it still needs to be said. Buying enough fresh produce to create a healthy balanced diet, organic or not, will cost you a bit more than a bag of Cheetos and a cola. But the number one tip to enjoying the returns of your financial investments is to invest in yourself first.

Besides, the money you save on medical bills will far outweigh the extra you spend on broccoli and cauliflower.

6. Live minimally

“If you buy things you don’t need, you will soon sell things you need.” – Warren Buffett

By minimally, I am not trying to imply that most wealthy people live in a tiny house with no electricity and only one chair. I simply mean they actively practice not living in excess.

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While building their wealth, they will have developed the habit of identifying what is an essential and what is a luxury, and it is a habit that will stick with them. They might begin to indulge in a few luxury items such as a nice house, new car or some name brand cloths but it is still well within their means and usually just one or two of said items. After all, you can only live in so many houses and drive so many cars at a time.

7. Read daily for self-improvement

“Reading is to the mind what exercise is to the body.” – Joseph Addison

With so many amazing classics in the world today a person could read a book a day and never read them all. Through books we learn so much about history, human nature, lifestyles and cultures that vary from our own.

The majority of the poor say that they don’t enjoy reading or they simply don’t have time for it. This is sad as it leaves a wealth of potential knowledge untapped.

The wealthy percentile of the population actively use this resource to sharpen their minds and sooth their souls. And if wealthy people don’t have time to read, they use modern technology to their advantage by listening to audio books during their commute. Like Thomas Corley said, “The wealthy are not avoiding watching TV because they have some superior human discipline or willpower. They just don’t think about watching much TV because they are engaged in some other habitual daily behavior – Reading.”

8. Learn something new every day

“Risk comes from not knowing what you are doing.” – Warren Buffett

Money is made by being actively engaged in the world and at the same time having an unrelinquishing thirst to understand it. Knowing this, wealthy people make a conscious attempt to learn or understand something new every day.

By learning and understanding the world and how the people in it operate you will be better able to predict their actions/needs and profit from it when opportunity presents.

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9. Show gratitude

Gratitude is not just a powerful tool for the wealthy, it is a great habit for anyone to practice daily. When you constantly have a lot of people around you, expressing sincere gratitude is a good way to keep opinions about you positive. They also make a habit of thanking someone with a gift or card.

10. Pass on T.V. and social media

Nearly 70% of the wealthy class will watch less than one hour of television a day, while only 23% of poor people can make the same claim.

Being poor alone will cause you to stress. Add an unfulfilling, mundane and minimal paying job to the mix, and it is understandable why many of the poor find comfort in mentally “unplugging”, or shutting off their brains, in front of the television.

Reality T.V, televised sports, Facebook and Twitter are all modern day tools of distraction to help us temporarily forget how miserable we are being poor. Problem is the time it takes you to forget the problem of being poor is the time you could have invested fixing the problem.

11. Wake up early

Waking up at the crack of dawn to rush out the door for work is not the same thing as waking up early enough to have plenty of time before work to think and reflect. Wealthy people typically practice the latter. Think of this time as a pre-game warm up, allowing your mind to mentally prepare for the coming challenges. Waking up early is an extremely useful tool for self-reflection and meditation in the daily arsenal of the wealthy.

12. Teach their kids to think rather than what to think

We have established that the wealthy do a lot of reading and learning. However it is important to know that they also pass down this habit of seeking knowledge and understanding to their kids.

Many wealthy parents will challenge their kids to find their own versions of truth. They actively engage with their children in intellectual conversations on the similarities and differences of their opinions without judgment. Wealthy parents understand the responsibility of letting their kids make their own way.

13. Meet someone new every day

Recent studies have shown that most people have a fear for speaking in public. The wealthy, however, overcome this fear by meeting, engaging or simply talking to someone new every day. Practicing this habit daily will help build the confidence needed to address larger groups.

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14. The make a daily to-do list

“I thought a goal was a broad objective, but the wealthy said a wish is not a goal.” – Thomas Corley

According to an article on business insider, over 80%of the wealthy will keep a daily to-do list. And not only do the wealthy write their detailed to-do list out, but they follow through with it as well. To become and stay wealthy, you have to know what needs done and be focused on following through on it.

15. Keep it simple

Wealthy people are forced to make multiple important decisions within any given day. Often times those decisions involve risking thousands, if not millions, of dollars. Even so, the human mind is only capable of making so many decisions a day, big or small. Knowing this, wealthy people will strive to simplify everything else around them in order to eliminate many of the mundane small decisions that litter our day such as what to wear or what to eat for lunch.

Steve jobs and Mark Zuckerberg are two wealthy men known for this habit. Keeping it simple, and not over complicating the basics, is a daily habit of the wealthy.

“These habits are like snowflakes – they build up, and then you have an avalanche of success.” – Thomas Corley

Featured photo credit: https://vincentloy.wordpress.com/2010/09/13/origin-of-the-word-skyscraper/ via vincentloy.wordpress.com

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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

Reference

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