Advertising
Advertising

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.”

Advertising

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.

Advertising

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.

Advertising

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.

Advertising

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

More by this author

15 Things Only Nurses Would Understand 10 Things Learnt From The Two Roommates Who Saved More Than $55,000 A Year You May Not Know Your iPhone Headphones Can Do These Things 10 Reasons Why Crazy People Are More Likely To Be Successful You May Not Know These 8 Things Are Pushing Your Husband Away

Trending in Money

1 The Best Ways to Save Money Even Impulsive Spenders Can Get Behind 2 How to Answer the Tough Question: What are Your Salary Requirements? 3 How Personal Finance Software Helps You Get More Out of Your Money 4 The Definitive Guide to Get Out of Debt Fast (And Forever) 5 35 Real Ways to Actually Make Money Online

Read Next

Advertising
Advertising

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.

Advertising

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?

Advertising

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]

Advertising

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.

Advertising

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

Reference

Read Next