In this article by John Culbertson, John takes a look at some of the habits of the wealthy and discusses how you can use them to better improve your life.
The Habits of the Wealthy: Use them to Grow Rich.
When you do something on a daily basis, you get better at it. Growing wealthy is no different. As Aristotle said, we are what we repeatedly do. Getting rich is not a onetime action but the sum total of many things that you do regularly. Most of us have role models in our chosen sphere of activity, be it art, business, music or sports, and we try to emulate these paragons of excellence. The rich also have habits that contribute to their success. Thomas Corley, a CPA and financial planner who worked with some of the wealthiest clients, was in a unique position to observe the habits of the wealthy and understand what they did which made them different. He wrote about it in “Rich Habits: The Daily Success Habits of Wealthy Individuals.” If you aspire to become rich then it is an important book to read.
You can also observe and emulate rich people that you know personally or those who are public figures. You will see a pattern emerge and notice that the habits of the wealthy are essentially just what our parents and teachers told us are good habits. There are no surprises here and most of what the rich do conforms to conventional wisdom.
Early to bed and early to rise makes one healthy, wealthy and wise.
Arguably, very few people follow this. They work late and get up early. That’s because they have no choice, you would say. It’s a very competitive world, agreed but it is not an unreasonable one. The reason why we don’t get up early is that we lack the will and the discipline. The rich have both in spades and the only way to acquire these qualities is by practicing them daily.
Defining your life purpose and working towards achieving it.
What is it that you want in life? It cannot be getting rich or making money because that is not a personal goal but the result of one’s actions. Becoming wealthy could become an infinite and meaningless pursuit because wealth is relative. For someone who makes $30,000 a year, making 100,000 a year is relatively rich but for someone who spends 100,000 a year, it is not. The latter would need to make a million a year perhaps to consider him or her as being rich. A goal involves self-improvement and consists of measurable goals which can be used to determine one’s progress.
Acquire assets not status symbols.
If you want to invest the money you make then it makes sense to use it to create value. A car is not an asset but something of utility value whose worth depreciates with every passing year, as any accountant will tell you. A work of art or stocks in a growing company are investments whose value increases with time.
Take calculated risks.
If you play it safe, you will not be sorry but you will also not be rich. Among the habits of the wealthy, the ability to take calculated risks is one which is the most difficult to cultivate because it involves losing money sometimes. Ask any rich man if he has made any wrong decisions with money and you will know that most of them have but they learned from their mistakes.
Making friends is not social networking.
One of the habits of the wealthy is not wasting time in meaningless or useless activities. Most of them apparently don’t spend too much time on social networking as the average person. Of course, we are talking about the majority of the wealthy here and not those super rich who created the social networking phenomena themselves. The rich are more interested in forming genuine friendships or developing relationships and not collecting friends or connections or whatever like trophies which is what most of us do when we are ‘social networking.’
Is becoming rich important?
However, is becoming wealthy what you really want? It seems like an odd question, because who doesn’t want to be rich? Well, if you want to become rich just for the sake of it then you may be better off not. Why? Take climbing Mount Everest, for instance. There are probably a very small percentage of people who’ve done that. Does it mean that you should also climb a mountain? Certainly not because you should pursue whatever it is that makes you happy or excites you or you are passionate about.
An important aspect of becoming wealthy is that you can use it to wield power over what you want to do and even change the world, albeit in small but meaningful ways. If inventing a more efficient and environmentally-friendlier way to travel from A to B is what drives you, do so by all means. If you want to do it because you think it will make your rich but doing it does not make you feel good, then you may want to rethink what is more important to you. Doing what you enjoy and doing something just because you think it will make you more money are two different things. It seems obvious but most often we don’t realize it is. Which is a better reason to get up early, because it’s a pleasure to watch the sunrise or because the wealthy rise early?