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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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Last Updated on January 2, 2019

How Personal Finance Software Helps You Get More Out of Your Money

How Personal Finance Software Helps You Get More Out of Your Money

Do you know what mental health experts point to as the biggest cause of stress in the United States today? If you said “money,” then ding, ding, we have a winner!

Three out of four adults today report feeling stressed out about money at least part of the time. People are either worried about not having enough money or whether they’re putting the money they do have to use in the best possible way.

Your money is either in charge of you or you’re in charge of it, there’s no middle ground. Using some type of personal finance software can help alleviate some of that money stress and better allow you to manage your money effectively. Without it, you may just be setting yourself up for constant financial worry. Life is already tough enough and there’s no need to make it more difficult by simply hoping your money issues will all work out in your favor. Hint: they won’t.

This guide will help you to understand how personal finance software can better assist with both accomplishing long term financial goals and managing day-to-day aspects of life.

Whether it’s tracking the savings plan for your child’s college fund or making sure you won’t be in the red with the month’s grocery budget, personal finance software keeps all this information in one convenient place.

What Exactly is Personal Finance Software?

Think of it like the dashboard in your car. You have a speedometer to tell you how fast you’re going, an odometer to tell you how far you’ve traveled, and then other gauges to tell you things like how much gas is in the tank and your engine temperature. Personal finance software is essentially the same thing for your money.

When you install this software on your computer, tablet, or smartphone, it helps to track your money — how much is going in, how much is going out, and its growth. Most personal finance software programs will display your budget, spending, investments, bills, savings accounts, and even retirement plans, levels of debt, and credit score.

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How It Leads to Financial Improvement

It shouldn’t come as a surprise, but people who regularly monitor their finances end up wealthier than those who don’t. When you were a kid, keeping track of all of your money in a porcelain piggy bank was pretty easy. As we get older, though, our money becomes spread out across things like car payments, mortgages, retirement funds, taxes, and other investments and debts. All of these things make keeping track of our money a lot more complicated.

Some types of personal finance software can help make things a little less complicated, setting you up to meet financial goals and taking away some of the stress associated with money.

Even if you already have a Certified Financial Planner (CFP) some type of personal finance software can be of great benefit. Whereas CFPs focus on the big picture of your money, they don’t handle the day-to-day aspects that determine your overall financial health.

It’s also not nearly as complicated as you might think and can take out a lot of the tedium that comes with doing everything on an Excel spreadsheet or with a pad and pencil.

Types of Personal Finance Software

When it comes to personal finance software, it generally fits into two categories: tax preparation and money management.

Tax preparation software such as Turbo Tax and H&R Block’s software can help with everything from filing income taxes to IRS rules and regulations and even estate plans. Plus, there’s the benefit of filing online and getting your refund check a lot faster than if you were to mail off your forms after waiting in line at the post office.

For the purpose of this article, however, will be focusing more on the personal finance software that aids with money management.

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Money management personal finance software will help you to see the health of your cash flow, pay down debt, forecast for expenses and savings, track investments, pay bills, and do a host of other things that 30 years ago would have practically required a team of accountants.

When to Use Personal Finance Software

So far we’ve gone over what exactly personal finance software is and how it can be a benefit to your money. The next logical step in this whole equation is determining when it should be used and how is the best way to go about getting started using it.

Below are four of the most common and practical ways to use personal finance software. If all or any of these apply to you and your money, then downloading some type of personal finance software is going to be a smart move.

1. You Have Multiple Accounts

There’s a good chance that when it comes to your money, it’s in more than one place. Sure, you probably have a checking account, but you may also have a savings account, money market account, and retirement accounts such as an IRA or 401k.

If you’re like the average American, you probably have two to three credit cards as well. Fifty percent of Americans also don’t have loyalty to just one bank and spread their money across multiple banks.

Rather than spending hours typing in every detail of every account you have into a spreadsheet, many programs allow you to easily import your account information. This will help to eliminate any mistakes and give you a bird’s eye view of everything at once.

2. You Want to Automate Some or All of Your Payments

Please don’t say that you’re still writing out paper checks and dropping each bill in the mailbox. While it’s noble that you’re doing your part to keep postal workers employed, we’re 18 years into the 21st century and you can literally pay every bill online now.

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There’s no need to log into every account you have and type in your routing number either.

With personal finance software you can schedule automatic payments and transfers between all of your imported accounts. Automatic transfers will help to make sure you have the necessary funds in the right account to ensure all bills are paid on the appropriate date. Late fees are annoying and do nothing but cost you money. It’s time that you said goodbye to them once and for all.

3. You Need to Streamline Your Budget

Perhaps the best feature of personal finance software is that it allows you track everything going in and out of your virtual wallet.

Nearly every brand of personal finance software out there has easy-to-read graphs and charts that allow you track every cent you spend or earn, should you choose. You might be pretty amazed when you see just how much you spent on eating out last month or if you splurged a little more than you should have on Christmas gifts last year.

Every successful business on the planet has a budget and using personal finance software can help you trim the fat on your spending in ways that affect your everyday life.

4. You Have Specific Goals to Meet

Maybe it’s paying off debt or saving for up something like a European vacation. Whatever your financial goal is, whether it’s long-term or short-term, personal finance software programs are one of the savviest ways to go about reaching those goals.

You can do everything from set spending alerts to notify you when you’re over budget to automating what percentage of your paycheck goes to things like retirement investments. The personal finance software that you choose should show you exactly how close you are to hitting those goals at any given time.

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How to Get Started

From AceMoney to Mint and Quicken, there ’s no shortage of personal finance software apps out there. Many of these programs are free to download and will allow you to pay bills, invest, monitor your net worth and credit profile, and even get a loan with the swipe of a finger.

Other programs may only offer you limited services and will require a one-time fee or subscription to unlock all that they offer. These fees can often vary from as little as two dollars to 50 bucks a month.

It’s best to start off with the free version and then gauge whether you’re able to accomplish everything you’d like or if it’s worth exploring one of the paid options. Often times the subscription programs come with assistance from financial planning and investment experts — so that can be a real benefit.

When deciding which personal finance software program to use, it’s also important to look at how many accounts you wish to monitor. Certain programs limit the number of accounts you can add. Be sure that if you have checking, credit card, and investment accounts to monitor, that you choose a service that can monitor them all.

Finally, when looking around for the right personal finance software that meets your needs, make sure that you’re comfortable with the program’s interface. It shouldn’t be expected that you recognize every single feature instantly, but if the features don’t seem readable and manageable to you, then you’re not as likely to use it and get the full benefits.

Final Thoughts

Personal finance software can go a long way in helping you to take control of your money and meeting your financial goals. It’s important to note, however, that some focus more on budgeting and expense tracking while others prioritize investing portfolios and income taxes. Explore several different programs and read reviews to find the one that’s right for you.

In this day and age, managing one’s personal finances in a secure manner that allows the user to have a real-time visual representation of their money is easier than ever before. With the numerous applications that are out there — both free and subscription-based — there’s no reason that every person can’t take control of their money and ensure they’re making smart money moves.

Featured photo credit: rawpixel via unsplash.com

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