In Part 1 of our 2 Part series we gave you a look at five habits that wealthy people have that, in most cases, you don’t. In today’s blog were going to, surprise, look at another five habits that they have that you should definitely emulate if you want to become wealthy as well. Enjoy.
One of the first is simply to avoid temptation. Listen, the fact is that it’s almost impossible these days to get away from the never ending pressure to spend money. Television, the neighbors, family, friends and even strangers on the street can make you feel inadequate if you don’t have the same “stuff” that they do. If you want to become wealthy you’re going to have to learn to say no to temptation, and do it often.
Honestly, do you need the newest smart phone, biggest house or most expensive automobile? If you think you do, then you might have more problems than just financial.
Setting financial goals is one of the most important habits that you need to emulate if you want to become wealthy. Whatever it is that you want to achieve, whether it’s to save $1 million, open your own business or purchase a second home as an investment property, setting goals and sticking to them is one of the best ways to do it. In most cases this means actually writing your goals down, checking back on them frequently and involving other people in your goal setting who can keep you on your toes.
Prioritize your financial goals, assigned target dates to have a specific amount of money or a specific task accomplished and display those goals openly somewhere that you can see them easily and check in with them regularly. This amount of accountability will help you to stay on track much more easily.
Another habit that they wealthy embrace is to educate themselves and do it often. Wealthy people spend a lot of time studying financial concepts, stay abreast of financial trends and learn the ins and outs of the financial markets. Whenever they have the opportunity to take advantage of someone or something that will strengthen their understanding, they take it. One of those opportunities comes from the venerable Wall Street Journal. Others include Fortune magazine, CNBC and anything that features the advice of Warren Buffett. One caveat is not to overwhelm yourself with information which, in some cases, can actually paralyze you rather than help you to move forward.
A vital habits that you need in order to become wealthy is to have a diversified portfolio of assets. While the old adage about “putting all your eggs in one basket” is a bit silly (what are you going to do, use five baskets?) what it means in essence is that you shouldn’t put all of your money into only one or two different assets but instead spread it out among several. Purchase mutual funds, bonds, stocks, real estate and maybe even collectibles.
The reason being is that if one of these assets is decimated, for whatever reason, you’ll still have all of the others to rely on and protect your finances.
Finally, although this is an old adage as well, wealthy people spend money to make money. In this case, that means paying a financial professional, like an accountant, financial advisor or estate planner, who has expertise in financial matters and can help you to make the best decisions about where and what to do with your money. You can still do some “DIY” investing on your own, but the objectivity, personalized guidance and expertise that professionals offer, while it may actually cost you a little bit of money, will more than likely allow you to save and/or earn much more money in the long run.
And there you have them. 10 habits that wealthy people have and, if you want to be wealthy as well, you need to embrace. It might not be easy at first but, like any habit, once you get into the “groove” of doing it all the time it will become easier and your financial empire will grow. After all, even Warren Buffett didn’t become a millionaire (excuse us, billionaire) overnight.