The rich and the successful do not accumulate wealth from maintaining their routine, watching TV after work. According to success magazine, here are some key traits and habits the rich do on a daily basis in order to accumulate wealth for that new Mercedes.
1) Live within your means.
Wealthy people avoid overspending by paying their future selves first. They save 20 percent of their net income and live on the remaining 80 percent.
Among those who are struggling financially, almost all are living above their means. They spend more than they earn, and their debt is overwhelming them. If you want to end your financial struggles, you need to make it a habit of saving and budgeting. Here are some sensible ways to budget your monthly net pay:
- Spend no more than 25 percent on housing, no matter if you own or rent.
- Spend no more than 15 percent on food.
- Limit entertainment—bars, movies, miniature golf, whatever—to no more than 10 percent of your spending. Vacations should account for no more than 5 percent of your annual net pay.
- Spend no more than 5 percent on auto loans, and never lease. Ninety-four percent of the wealthy buy instead of leasing. These folks keep their cars until the wheels fall off, taking great care along the way so that they save money in the long run.
- Stay away from accumulating credit card debt. If you are doing this, it’s a clear sign that you need to cut back somewhere.
- Think of savings and investments as two completely different things. You should never lose money on your savings. Try to stash six months of living expenses in an emergency fund in case you lose your job or your business goes belly-up.
- Contribute as much as you can afford to a retirement plan. If you work for a company that matches your contributions up to a certain percentage, great. Always take that free money when you can get it.
2. ) Read every day
Reading information that will increase your knowledge about your business or career will make you more valuable to colleagues, customers or clients. Among wealthy people, 88 percent read 30 minutes or more every day. Just as important, they make good use of their reading time:
63 percent listen to audiobooks during their commute.
79 percent read educational career-related material.
55 percent read for personal development.
58 percent read biographies of successful people.
94 percent read current events.
51 percent read about history
development, networking, volunteering, working side jobs or side businesses, or pursuing some goal that will lead to rewards down the road. But 77 percent of those struggling financially spend an hour or more a day watching TV, and 74 percent spend an hour or more a day using the internet recreationally.
3.) Control your emotions.
Not every thought needs to come out of your mouth. Not every emotion needs to be expressed. When you say whatever is on your mind, you risk hurting others. Loose lips are a habit for 69 percent of those who struggle financially. Conversely, 94 percent of wealthy people filter their emotions. They understand that letting emotions control them can destroy relationships at work and at home. Wait to say what’s on your mind until you’re calm and have had time to look at the situation objectively.
4.) Set goals, not wishes.
You cannot control the outcome of a wish, but you can control the outcome of a goal.
Every year, 70 percent of the wealthy pursue at least one major goal. Only 3 percent of those struggling to make ends meet do this.
5.) Avoid toxic people.
We are only as successful as the people we spend the most time with. Of wealthy, successful people, 86 percent associate with other successful people. But 96 percent of those struggling financially stick with others struggling financially.
If you want to end your financial struggles, you need to evaluate each of your relationships and determine if they are a Rich Relationship (with someone who can help you up) or a Poverty Relationship (with someone holding you back). Start spending more and more time on your Rich Relationships and less on your Poverty Relationships. Rich Relationships can help you find a better job, refer new business to you or open doors of opportunity.