Are the wealthy and rich people just good at finance, or is there a deeper genius for their success?
All of us aspire to join the 7-figure club in a world of average people and average salaries who don’t dream of being rich, so they can avoid working, go on shopping spreads without shame and take endless vacations?
Most wealthy people don’t do those things, though, and that’s part of how they create their wealth and retain it. There is a distinction between living a life of reckless spending (which would quickly drain the bank account of even a rich person) and living for long-term financial freedom and prosperity.
The Habits of Wealthy People
The self-made wealthy aren’t inherently smarter than anyone else, but they’ve learned certain crucial concepts that will help them step forward and stay ahead. Perhaps significantly, they view wealth-building as an apprenticeship and that’s one you should understand, too.
So, if you want to join the ranks of the ultra-rich, try to improve these 10 habits and change the lifestyle and see what it feels like about financial independence.
The rich read books; the poor watch television.
Whereas the poor enjoy themselves by watching Netflix and sleeping, the rich educate themselves, seeking to learn something they couldn’t have done before. While it is still pointless to read books to understand women. You will have better success by watching ‘ Sex and the city’ or ‘ Friends.’
To rich people, not every book would be enough. Just books that bring them closer to achieving their goals. For those who wish to raise their income, books like ‘Rich Dad, Poor Dad’ or ‘The Richest Man in Babylon’ And ‘Principles: Life and Work’ for all individuals who want their lives to be optimized.
I read all these books, and recommend them to you all. Do not hesitate to add your own book list to the comment section. I’m just looking for more information.
Rich people get paid based on results; the poor get paid based on time spent.
Rich people do not make a profit based on their hard work but based on the results. The manager is, or the company’s shareholders are. Yeah, your potential could be wasted by even your boss. If the results are negative, poor people get punished. They might get fired. It all depends on just how much your boss likes you.
And if you’re (un)lucky, dress the way you are. You are refining your ass-kissing skills, instead of enhancing your earning skills. How does the boss not get mad? What to make the boss respect you, and give you a bonus, or pretend you’re working without realizing you are browsing Facebook. That way, you could get more money or not get tired at the end of a ‘hard, boring’ working day, but you won’t get rich!
You have to own up to the risk of having the wrong result. You need to focus on your ability enhancement score. Enhance the product or service you are willing to offer. All the burden is on your shoulders but all the gains are on your shoulders. When you’re making money then you’re getting money for profit.
If you are making or producing the world’s best-damned thing; that way you will make millions, even billions. When you start a business offering a product or service, you’re the founder, you’re the leader in that. Some money goes to you. It was the beginning of all the major corporations, Amazon, Microsoft, Apple, Google and so on. Heck, McDonald’s’ worth even 140 billion.
You can be rich as long as you don’t do the hamburger flipping or mopping the kitchen. They had taken the risk head-on. We own their craft and their risks. They own the outcomes!
For all the jobs they don’t want to do, they pay other people minimum wages to do it. This means more people working on the goods. More products mean better results. They own the performance, they own the people’s work which they pay. They are the ones who benefit from your work.
Their research has to be focused on outcomes. Only then can you progress to the results you will produce. You can only become wealthy this way.
Would you think the performing artist gets paid? Are they being charged by the hour? No! But no! They get paid out of the result, and only outcomes. Within a single day, they can make more money; than you can in a decade.
The rich take responsibility for their failures; the poor blame others for their misfortunes.
It is always someone else’s fault for poor people. They’re not facing up to their failures. The trouble with this is they can’t get any better. They’re not learning from the mistakes. Thinking like that closes all the doors to develop your skills in earning money. If you are so good then why are you not making more money? What would you do to make more profit if you are the best you can always be?
You’ve all used cheap excuses like, the economy is poor, or my boss doesn’t like me or stuff that the government has messed up. My mom won’t let me. You are fine but will not make more money because you are held back by the rest of the world. Talk it over again. It’s a fair world. It’s your point of view that is wrong. You have to earn the right amount of money. If you didn’t, maybe someone else will pay you money for them to work with.
Rich people are taking responsibility for their mistakes. They use it to learn about how to do it better. How to make changes to what they do. By doing so, they’re improving the results they can produce. And in exchange, their self-worth boost. This will contribute to more money being made for the same activities.
You’re going to do them without any blame because you fixed the faults. If your life is a complete mess, then that is your fault. Blaming someone else isn’t going to correct the mistake. Not even as president. It was your actions, take responsibility for them. Develop your acts, and make yourself better.
You are making your income. The result you produce is what you get paid for. You’re the boss. You decide your destiny!
The rich focus on earnings. The poor focus on saving.
Although living frugally and saving money is one of the main factors in wealth formation, those with a rich mentality place greater importance on earnings.
Rich people are always good at saving money, because they know how much you can save is limited, although legally there is no limit to how much you can gain.
To put it another way, rich people believe wealth is plentiful and not scarce. Again it’s not to say it’s not necessary to save money. Don’t read it that way because it’s necessary to save money but there are several ways to maximize your savings without cutting back on things you enjoy.
With that said, by concentrating your attention on learning how to make more money, developing a new business concept, and saving your capital to benefit from compounding interest, you are one step closer to attaining a rich mindset.
One group operates out of awe, the other out of abundance. The self-made rich are not afraid to take calculated risks, because they know they can make it all back if they lose.
Whereas the middle class still finds the home run investment that will make them rich, the world-class wisely spend, realizing that the majority of their money will come from the service they offer.
Many people are more concerned with the small profits they earn from their savings and investments than with using their billion-dollar minds to create a fortune.
They are professionals when it comes to concentrating their mental energy where it belongs: on big money. How’s it for you? Are you concentrating more on saving the pennies or creating an empire?
The rich live below their means. The poor live beyond their means.
Living under your means is easy because you earn more in a day than most people earn in a year. Not to mention that the rich earn money mainly through interest rather than hard work. It’s hard work that generates the physical and psychological tension that destroys so many people in poverty, education and the middle class.
The rich embrace any form of education that makes them wealthier. The poor embrace advanced degrees.
You will always hear and see that academics and fancy degrees caught up with the poor and the masses. While the poor are busy working hard at obtaining all 24 alphabets behind their names, the wealthy spend the majority of their time developing real-life skills.
It’s not to say that going to school and graduating doesn’t add any value, but rich people are open to learning stuff they don’t teach in school. Such new skills that have been developed outside of an academic environment could boost your self-development and make you wealthy when you exploit it.
Buffett credits much of his success to the class, and his office shows more than enough proof.
“I don’t have my diploma from the University of Nebraska hanging on my office wall, and I don’t have my diploma from Columbia up there either but I do have my Dale Carnegie graduation certificate proudly displayed,” he says. “That $100 course gave me the most important degree I have. It’s certainly had the biggest impact in terms of my subsequent success,” he says.
Rich people Network with other successful people while poor people network with unsuccessful people
Wealthy people understand how important it is that they surround themselves with other wealthy people. Wealthy people spend time networking with wealthy people who also have ambition, creativity and, most importantly, the capacity for wild success.
Each month, the rich spend time getting to know other like-minded people at conferences, festivals, and meetings, or just having coffee or a drink with somebody of interest.
It is time spent wisely because it keeps their minds focused on performance and lets them reach new people with exciting, thought-provoking ideas. It also lets affluent people fill their contact lists with important and prominent individuals who can support them (and vice versa).
The rich create multiple income flows while the poor focus on one income flow
The more money you’ve got, the easier it’s getting more money. However, having multiple revenue sources is the simplest however quickest way to make more money. This means you still get money in and you can use the surplus profits to invest in new revenue flows. Which, in a nutshell, is the wealthy’s primary means of remaining fat.
There are two basic types of revenue: active income, in which you work for the money you receive, and passive income, in which payment is not directly tied to the number of hours you work. Passive income includes rental properties, dividend savings, index funds, writing a book or making an app, all of which would result in a steady flow of revenue or royalties income.
Avoid overspending
While non-wealthy people daydream about spending money without worries, buying fancy cars, big houses and luxury clothes, the rich realize that the less money you spend. If they were spending heavily, the rich would not remain rich for long. No matter how much money you earn, if you spend more than you make you are still going to be bad.
The rich people agree that the less you invest, the more money you need to expand your wealth. Bear in mind that your income is linked to frugality — a wealthy person will spend much more than someone considered middle-class. Yet the wealthy prefer to be thrifty in relative terms and make sure they don’t over-spend.
Take time to reflect
Most of the self-made rich invest time in day-to-day oriented thinking. Spending 30 minutes (or more) in a quiet space allows them time to focus on their lives and priorities, think about their wellbeing and relationships, consider their job and financial aspirations, and evaluate where they are and where they want to be right now.
Now is also the time to concentrate on self-improvement and use thoughts to work. To help them come up with innovative solutions and ideas, some may opt for journaling or writing. Only make sure to focus your energy on positive thinking. Do not waste your mental resources on ruminations or negative patterns of thinking that will make you guess yourself in second place. The rich don’t.
Take Away
We know that for many of the poor there are circumstances that place them at a disadvantage in one way or another, and not everyone has the opportunity or ability to pick up on them.
Like everything else, we also know that following a list to the letter can be a little daunting, so take into account each of these time-proven tips, make the decisions that you believe you can make work in your life.
There is no clear timeline that leads to wealth, but statistics show that certain basic rules can transform into positive behaviors that can transform into positive outcomes that can lead you on a road to financial prosperity.
Just know that if you take the advice the wealthy share, these tips for success will get you one step closer to the lifestyle you crave and deserve.