Having a lot of money does not guarantee you happiness, but having just enough money to scrape by isn’t an ideal situation either. Learn about 8 habits rich and successful people practice and be on your way to achieving financial success!
Don’t Be Cheap
“Long ago, Ben Graham taught me that ‘price is what you pay; value is what you get.” Whether we’re talking about socks or stocks, I like buying quality merchandise when it’s marked down.”
Warren Buffet wrote that in the 2008 Berkshire Hathaway Chairman’s Letter, (which is a long, but interesting read.) He is known as one of the richest and successful men in the world, so it would be relatively safe to take his advice about money.
Lesson number one, look at value over cost. One of the step towards building your wealth is to know the value of what you’re getting. For example, buying an item at a low price, but getting a low quality product in return is definitely not a smart financial move. Pay a little bit more instead, and always go for value over price when making purchases next time. There is a difference between being a cheapskate and being thrifty! People like Warren Buffet are super rich because they’re not only cautious, but smart with how they spend their money.
See also: Things You Should Never Buy Cheap
Read The Right Stuff
Reading increases knowledge and this may seem like a no brainer, but are you gaining valuable and useful knowledge from your reading? A study carried out by Thomas Corley on the differences of habits between the rich and poor showed that among the habits of the rich is that 88% read books that enrich them. Apparently only 11% of the rich people Corly studied read for entertainment. The rest of them read biographies of successful people, career-related books, history, and money matters.
You don’t necessarily have to limit yourself to personal finance books, but do read books that can help you to acquire other practical knowledge as well. Need some reading suggestions? You can start by reading books such as Rich Dad Poor Dad, 7 Habits Of Highly Effective People, Who Moved My Cheese?, and It’s Not How Good You Are – It’s How Good You Want To Be.
Build Your Wealth
94% of rich people save 20% or more of their income, and they saved their money long before they became rich according to Corly. Try to save 20% of your income while living on 80% of it. It’s not just about making a lot of money, it’s also about putting some aside and saving it so you can ensure you have financial back up. Thanks to compounding interest, you too can set aside your money and let it grow!
Compound interest is interest that is added to the principal amount. With compound interest, you will be earning interest on top of the interest you have already earned. The addition of interest to the principal amount is known as compounding. Check out the example below to see how much you can make with compound interest.
As you can see, the earlier you start means the more money you can get!
Whatever your current situation is right now, it is better to start early and get on the saving bandwagon. It takes time to build your wealth, so best to get started now!
They Maintain A List
“Depending on what they are, our habits will either make us or break us”
The above quote is from Stephen Covey, author of 7 Habits Of Highly Effective People. Apparently, 67% percent of rich people maintain a to-do list as shared by Corly. Essentially, this makes sense as it helps you to stay focused and keep track of your many tasks. So keeping a to-do list is a good habit to help you achieve financial success as well as keep your life stress free!
They Curb Their Enthusiasm
Learn to say no and quit trying to be an overachiever. You know how the saying goes, “jack of all trades, and master of none”? Among the many habits of the rich and successful is they learn when to say no, and instead they usually focus on a niche. Stay focused and put emphasis on quality over quantity. Do remember that it’s not always about how much you get done, but it’s also how well it gets done.
They Manage Their Finances
Have a weekly or monthly money date to review your budget and spending. We already know that most of the rich people save at least 20% of their money. But before you can get around to doing that, you first need to get your finances sorted out. One of the best ways to do that is to manage your finances and lay out all of your spending.
They Hang Out With The Right Crowd
You are the average of the 5 people you spend time with. Understand that success does not happen in a vacuum. No one becomes successful by themselves, in reality it’s a combination of the right network, combined with yours and other people’s talent. 79% of the rich spend at least 5 hours each month for networking. If you think networking is just having a few drinks and making small talk, it’s actually more than that! Think of it as an opportunity to build rapport for yourself with the important people in your industry.
So attend the right events and hang around successful people, some of their traits are bound to rub off on you! Plus, you may also score money-can’t-buy contacts of the who’s who and the decision makers in your industry!
They Value Their Health
Everyone’s heard of the saying, “healthy body and healthy mind.” According to Corly in his book Rich Habits: The Daily Success Habits of Wealthy Individuals the rich people value their health and they actually take the time to make sure they are in good shape. Plus, if you don’t already know, having health issues can be costly! And if you still don’t see the connection between health and wealth, remember – a healthy mind and body is more attuned to success!
Want to make the most of your hard earned money? Make sure you’re using an optimised credit card that gives back to you when you spend. Don’t have one yet? Use the free credit card comparison tool from CompareHero.my and be on your way to more savings and privileges!