This post is all about habits of the wealthy anyone can incorporate (but almost no one does).
What is it that differentiates self-made millionare and entrepreneurs? Are they smarter? More determined? Do they have an advantage that sets them apart from the rest of us? Is it in their genetics?
It all boils down to their mentality and their habits. It´s not that they were naturally born with capabilities that set them apart.
We could come up with a million reasons (or excuses) as to why we aren’t rich.
But the truth is that it all comes down to us and our daily habits.
Our habits and mindset are the roots of everything in our lives. The secret behind our successes and failures is hidden in the small and everyday actions.
So what habits do entrepreneurs and self-made millionaires have that have made them as successful as they are? Here are 9 revolutionary habits of the wealthy!
Keep track of their money
Wealthy people are not compulsive spenders and they know where every cent comes from and how every cent is spent.
Adopting the habit of managing your money is important not only because it gives you a sense of control and comfortability over your finances, but also because it will give you a starting point over what areas you need to work on.
Unfortunately for us, despite the many years, we spend at school, we are not taught financial literacy.
But the good news is that personal finance is a skill that anyone can learn and educate themselves on.
One way you can start tracking your money is by creating a budget.
A good framework to start could be 50/30/20 where 50% of your income goes to your needs (rent, bills, expenses…), 30% to wants, and the remaining 20% to investment/savings.
So following this framework, at the start of each month, you divide your income into these three categories and start making a record of where you are spending your money.
And you´ll find that once you start, managing your money is not as complicated and scary as it seems.
Don’t avoid risks
Rich people take calculated risks.
Nothing is guaranteed in this life, not even tomorrow, not even success.
And sometimes in order to win, you´ll need to risk some things.
But what does a calculated risk mean?
When I say don´t avoid risk, I don´t mean to risk all your money into a business you don´t even understand.
Research about anything that you doing, don´t trust everything you hear at first, always do your research, and consult with someone who has experience in what you want to do.
Once you know what you are getting yourself into (and investing your money into) and know and understand the risks, meditate if you are willing to take those risks, but never forget to see the bigger picture.
In order to win, you must be willing to take risks.
Never stop learning
One quality that characterizes all entrepreneurs and self-made millionaires is that they never stop learning.
They understand that in order to be successful they need to invest in themselves and their growth (both professional and personal).
Consistent learning and growth are one of the keys to success.
However, they are avid readers and learn not only because they understand it plays a big part in their success.
But also because they know our world is constantly changing. There is new information on the internet by the hour.
Rich people understand that they´ve come to where they are with the information that they have, but to go further they´ll need new information.
Fair warning: You might become an entrepreneur the more you read self-help books and educate yourself!
Have big dreams
“Shoot for the moon, even if you miss you´ll land among the stars”
When you dream big and constantly focus on what you want, small hurdles or roadblocks won´t stand in your way and encourage you to quit.
Think big, dear to dream and have goals so big that small minded people feel comfortable hearing about them.
Have you ever heard the quote: “Be friends with 5 poor-minded people and you´ll become the 6th. Become friends with 5 millionaire people and you´ll become the 6th”?
Rich people know there is an unmeasurable value in friendships and networks.
So take a moment to assess your current relationships and friendships and focus on creating meaningful, positive relationships in your life and letting go of any that are toxic and no longer serve you
Take care of their health
The seventh habit of the wealthy is to prioritize your health.
And I know what you might be thinking, what does your health have to do with your finances?
Well, the point of having money is to be able to enjoy it (even though we sometimes tend to forget that).
However, how can you enjoy your money and the things you love when you are not taking care of your physical and mental health?
A healthy person has thousands of wishes, but a sick person has only one. Quote
Want to discover these 7 life-changing habits to improve your mental health and be happier?!
Invest in your financial intelligence
The second most important thing to focus on to achieve your financial freedom is to develop your financial intelligence.
But why should you focus on developing your financial IQ?
Because financial intelligence simply consists of having more options. Investing in it gives you the opportunity to live a better life, to live a life on your terms, to not be forced to accept conditions that you know will make you unhappy because you have “no other choice”, it gives you the ability to take what you have and turn it into something better.
Financial intelligence is not so much about what happens, but about how many solutions you can come up with to become rich. The mind is the most powerful asset we have. If we train it well, it can produce enormous wealth in what seems like an instant.
Read books, listen to podcasts, go to seminars, and invest in your financial intelligence. Reconnect with your curiosity and your desire to learn new things and start learning from the ones that did it before you.
They cultivate patience
Wealthy people know Rome wasn´t built in one day. And neither is your success.
Put in some effort upfront and spend months (sometimes even years) before they can reap what they saw.
Because of today’s world we are used to instant gratification from things like social media.
Focus on putting the effort in and being patient and perseverant. You have to find joy in the process. If you don´t enjoy the process you won’t find joy in the outcome.
Use your money smartly
You will work until you die unless you find a way of making money work for YOU.
This is an essential idea that rich people have internalized.
But what does it mean to make money work for you?
As we said before since we were kids we have been repeated the importance of having a job so that we can earn money.
In this system, we are exchanging our time for money, by working for it.
However, what we want to achieve is the opposite: to make money work for US.
How is this possible?
Let´s start with the definition of financial independence: Financial freedom is being in such a position where you have enough income to pay one’s living expenses without having to be employed or depend on anyone.
So following this definition, our money works for us when it is not linked to the time we invest in earning it.
An example of this is when we earn money while we sleep. In this case, we are not working or investing our time in a job, but we are still receiving an income.
When we have a job the amount of money we can earn is directly linked and limited to the time we dedicate to that job, the more we work, the more we earn.
But the truth is that we do not have an infinite amount of time and everyone has a limit to how much time they can devote to work.
4 Simple ways to make money work for you
Okay, so in order to achieve my financial freedom I need to make money work for me, but how the hell do I do that?
Well, there are 4 simple ways in which you can make money work for you:
- Education: This option is barely considered because it doesn´t directly give you an income stream. But if you think about it, everything starts with education. How can we expect to be successful at anything if we don´t take the time to educate ourselves?
- Intellectual Passives: Have you ever thought about turning your experience and skill in a specific area that you master into something profitable? We live in an area of information where people can find the answer to any question with just a phone and some internet. And the best thing is that many people today are willing to pay for those answers and that information.
- Investing: Investing is considered as the action to put forth capital to earn a profit or an income. Inside this method of creating passive income streams, there are 4 big families in which investments are divided: Raw materials, Real estate, the Stock market, and Mutual funds.
- Modern Passives: Modern Passives consist of all the new ways in which you can create passive income streams thanks to the technological era. They are characterized by the small amount of capital required to create these incomes. ( For example affiliate marketing, having a YouTube channel or blog, dropshipping, etc.)
You can learn more about these 4 ways of making money work for you and so living from paycheck to paycheck in this article!
I hope you enjoyed this blog post about the 8 revolutionary habits of the wealthy. We all dream of a better life, one where money is not a problem, or a tool of survival, but rather a tool to make our dreams come true.
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