I subscribe to Success Magazine because I want to learn about other successful people in the hopes that I can better myself and increase my odds of being successful. In a recent issue, there was a story about the 16 habits of wealthy people.
Since I want to become rich, I read that story first. It was so powerful, I thought it would be interesting to talk about these 16 habits because while some of them are ones I would classify as well-known to most of us, there are a bunch of habits on the list that I think many of us (myself included) tend to overlook. Here are the 16 habits and below them are detailed explanations:
16 Habits of Wealthy People
- Live Within Your Means
- Don’t Gamble
- Read Every Day
- Forget The Boob Tube and Surf The Internet Less
- Control Your Emotions
- Network And Volunteer Regularly
- Go Above And Beyond In Work And Business
- Set Goals, Not Wishes
- Avoid Procrastination
- Talk Less, Listen More
- Avoid Toxic People
- Don’t Give Up
- Set Aside Self-Limiting Beliefs
- Get A Mentor
- Eliminate Bad Luck
- Know Your Main Purpose
Live Within Your Means: Pretty straight-forward with this one. If you have to go into debt to buy something, chances are you cannot afford it. Granted, a house and a college education are exceptions (within reason of course), but for things like clothing, gifts, flat screen TVs, etc. you should not be going into debt to buy these things.
According to the article, wealthy people save 20% of their income and spend the remaining 80% (in other words, they pay themselves first) while almost all of those struggling financially spend more than they earn. Learn to automate your savings so you are paying yourself first.
Don’t Gamble: I gamble, but I don’t gamble. What I mean by this is that I take part in a weekly football pool picking the winners of each week’s games. I also will spend $100 on slots/blackjack when my wife and I or my friends and I head to Atlantic City. The keys are:
- the money I spend is small in amount, and
- the money is spend is money I can afford to lose
This is important because too many people play the lottery on a daily basis hoping to strike it rich or they use money that they really cannot afford to lose. If you are choosing between buying a loaf of bread and buying 2 scratch off lottery tickets, you need to seek help.
The main difference between the rich and poor here is simple: poor people rely on luck to improve their financial situation while wealthy people rely on themselves to improve their financial situation.
Read Every Day: I’ve gotten better at reading on a regular basis. Why is reading important? A few reasons come to mind:
- it makes you think
- it expands your horizons
- it grows your vocabulary
- it keeps your mind sharp
The more you work to better yourself, the more it will overflow into other areas of your life, like your career and income.
The key though is to read things that will better yourself. Only 11% of those that read on a regular basis read for entertainment purposes. Most read career-development material, self development books, current events and biographies. [Read more…]