10 Habits Of Rich People That You Should Incorporate In Your Daily Life
All of us have the desire to be rich, financially independent and drive a Lamborghini on the roads of Hollywood.
But this is not possible without the right habits. And most rich people around the world know that.
Those who are financially successful have some standard habits / mindsets that drive them towards the right direction.
And if you also want to become financially independent you might need to make some changes in the way you think or act in your every day life.
Sometimes, the smallest changes are the ones that have the biggest impact in our lives.
So, let’s see which are the 10 habits of rich people and why you should incorporate them in your life:
1.Financially Successful People Don’t Spend Money On Impulse
Most people want to take advantage of the “easy life” and fall into the trap of instant gratification. They succumb to the short-term pleasure of an impulse decision and don’t think logically about their actions.
The truth is that emotions drive us. Because of that, it’s important to learn how to control your thoughts and emotions. In the particular case: how to avoid impulse buying.
You could probably save hundreds or thousands of dollars if you accomplished that (depending on your current income).
Eating out or buying things constantly can really drain your finances if you do it extensively. No, I am not advocating that you will become a millionaire if you save 3$ daily on lattes.
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I am talking about other kind of silly purchases. Don’t spend your money mindlessly – especially on inanimate objects (Read:Being Emotionally Attached To Inanimate Objects Will Ruin Your Life).
To minimize this, you could ask yourself this question before you decide to buy something:
“Do I really need that? Is this essential for my life?”
If your answer isn’ yes, or if you are not 100% sure, then you should delay your purchase.
Delay it for at least a week. And if you see that you still want it, then go and buy it. In most cases, you will probably forget it and never buy it.
The truth is that we don’t really need all the stuff we buy. You might enter a shop with your friends and buy a 100$ gadget just because it was cool and you were there with your friends. Not because you needed it.
You can’t attain financial stability if you can’t control how much you spend. Even if it’s 100$. You might think that it’s only 2% of your income.
But if you don’t respect that 100$ now that you have a 5000$ monthly income, then you won’t respect that 100.000$ when you will be making 5.000.000$.
So, to reduce impulse buying: delay every purchase you want to make for at least a week and always ask yourself the question above:
“Do I really need that? Is this essential for my life?”
2.Rich People Prepare For Rough Times
Spending less than you earn is crucial unless you want to end up in a huge debt. You shouldn’t spend more than half of your monthly income.
If you spend more, you will need to either make more money or reduce your expenses.
Saving money is essential for financial prosperity. Think about it. If you spend almost all your monthly income, what will you do in case of an emergency?
What if everything goes wrong for a week? What if you have a serious accident?
I am not trying to be pessimistic. The point is that you need to have a back up for when something in your life doesn’t work out. Thousands of people lost their money during the financial recession in 2009.
And they didn’t have a back up. They were left dead-broke. On the other hand, those who were financially savvy have kept money aside or had a second income stream. And the recession didn’t touch them.
Always save money. If you can’t save money, it means that you are not earning enough. And then you should focus on increasing your income.
But as soon as you have increased your income, make sure that you will save for when something goes wrong. Always expect the best, but be ready for the worst.
3. Rich People Take Care Of Their Physical Well-Being.
Financial prosperity equals to physical wellness. You can’t be financially independent if your health is declining. Have you ever seen a young millionaire who constantly eats burgers for dinner and doesn’t care about his health?
Most young millionaires and entrepreneurs stay fit because they know that physical health is the number one indicator of mental shape.
Mental shape is essential for financial stability. How can you accomplish your financial goals if you use a rotten vehicle? Just like you couldn’t reach your destination if your car was messed up, the same applies to your body.
Rich people prioritize their health and wellness because they know that it has a huge impact on their finances.
4.They Track Their Expenses Wisely
If you don’t monitor your expenses you might end up paying money for things you don’t even need. Just like impulse buying this might lead to several thousand dollars in losses.
Write down how much you spend every single day. Simply buy a notebook where you will be writing down your expenses. (Or use a digital notebook like OneNote)
Write each thing you bought during the day and calculate the total expenses. Incorporate this habit in your daily life and do that every single night.
It takes less than 2 minutes. I always do it before going to bed. It helps in knowing where your money goes.
Check your notebook t the end of the month and see if you bought something that you didn’t need. Or if you could cut down some of your expenses. You will be amazed by what you will discover.
5.Financially Savvy People Never, Ever Get Into Debt
Debt is slavery. Debt can have a huge-negative psychological impact and can literally stop you from achieving your goals and reaching your full potential.
Imagine having to wake up every day knowing that you owe someone several thousand dollars. This feeling is totally horrible and works against your success.
The secret is to never get into debt and never take a loan.
A loan or mortgage will probably end up with you owing money to the bank. Instead, always pay with cash. If you don’t have enough cash to buy something you, then never buy it.(Cool tip by Victor Pride)
Paying with cash is the best way to check if you afford something. Think about buying a coffee. Do you even think about it? You just go into the coffee shop and pay with cash.
That’s what you should do with everything you buy. No cash, no purchases. Make this your new motto. No cash, no purchases.
You shouldn’t even borrow money from your friends and family. Because this will put you in the same debt-slave mentality.
You will be accustomed to borrowing money and you might fall into the temptation of doing it again on a larger scale.
6. Rich People Self Educate Themselves
School seldom teaches us real lessons about financial literacy. All financially successful people know that self-education by reading books or taking action is 10x more worthwhile and effective than 5 years in school.
Financial independence and wealth come into your life when you have a set of skills and knowledge that you can monetize. To acquire these skills you have to read more and take more action.
Trying to solve your problems, facing difficulties and overcoming bumps in your road to financial freedom will teach you invaluable life lessons that most will never learn.
Get out of your comfort zone and take action.
7.Rich People Know How To Manage Their Emotions Around Money
When you act too emotionally in your financial endeavors you end up making silly mistakes that you could avoid if you have used your logic.
When you are doing business, you need to be a relentless winner. That’s the only way to succeed. And there is no room for emotions in business.
Robert Kiyosaki has said something really wise: “In the world of money and investing, you must learn to control your emotions. High emotions equal low intelligence”.
To take the right decisions that will unlock the gates of financial freedom you must shut down your emotions and let your logic drive you.
8.They Don’t Use Shopping For Instant Gratification
That’s what shopping is. A way to fulfill your emotional needs for a short period of time. Unfortunately, the joy of wearing a new pair of jeans doesn’t last more than the first few times you wear it.
Then it just becomes another ordinary pair of jeans in your wardrobe.
It’s another thing to dress sharp and take care of your appearance, and another thing to use shopping as a way of gaining emotional satisfaction.
The first is beneficial while the latter is destructive.
9.Financially Successful People Are Perspicacious
A regular blood work might be annoying, but is cheaper than facing a serious health problem later in life. If something can save you from future trouble, don’t avoid it to save a few bucks.
Paying for an oil change is definitely cheaper than buying a new car.
If you want to reduce your expenses, try to minimize the unnecessary ones. But, don’t save money on the essentials.
Otherwise, skipping a 50$ payment for a tooth clean up might later lead to a root canal that will cost several hundred dollars…
10.They Don’t Fall Into The Trap Of Get Rich Quick Schemes
Can someone really show you how to make 3000$ per day in just three days?
Then why does he ask you to pay 50$ for his “superb money making course”? Assuming that he makes 90.000$ per month, why does he need your measly 50 bucks?
Ah, maybe he makes 90.000$ from people who pay him 50$…and not because he really uses his money-making method.
Don’t fall into the trap of get-rich quick plans. Rest assured that when someone strikes proverbial gold, he won’t share his methods with you in a “super opportunity” seminar.
Wealth accumulation happens over time, not just in 3 days.
So, these were the 10 habits of rich people that you should emulate. Will you become rich only if you incorporate these habits into your life?
Maybe yes, maybe not. But it will be a nice way to begin your journey to success, riches and living life on your terms.
Which of these 10 habits do you already follow? Did you ever struggled following any of them? Or do you know another habit that’s worth to be mentioned?