Have you ever stopped and asked yourself what it is that wealthy people possess (besides money of course) that the majority of us don’t? I don’t mean big houses, fancy cars and a full bank account. I am talking about what it is that the wealthy seem to know or do that many of us don’t. The answer? Good habits.
Did you know that only 1% of households in America are considered rich? The remaining 99% are categorized as either poor or middle class. I assume if you are reading this then you are striving to be part of that 1% and who wouldn’t want to be?!
So, what exactly do the rich do that the majority of us are not doing? I am sure you have heard the many “rags to riches” stories out there, but what are these people doing everyday that worked? What habits do the wealthy practice that we can learn from?
In this post, I am going to share 10 common habits that wealthy people practice every day. These are habits that serve to make them more successful in business and in their personal lives. Yes, we all have habits and some of us have adopted great habits (eating healthy, exercising, going to bed early etc.) but there are many more daily habits that may just help YOU improve your wealth.
So let’s get down to business and dig in!
1. Get Up Early
As creatures of habit we tend to get up and go to bed around the same time day after day. Did you know that having a good early morning routine will help set you up for success? If you are not a morning person and like to hit the snooze button a few too many times then perhaps this is one habit you need to change.
Did you know that if you get up even just 1 hour earlier every day then you have gained an additional 365 hours, or, 15 DAYS worth of time per year? That’s over 2 weeks of additional time that you could devout to your goals. Don’t waste it! This is why the most financially successful people don’t sleep in. They take advantage of the extra time and they start off with a good morning routine.
2.Budget
If you have read some of my posts then you know that I encourage everyone to make a budget. This is something that you NEED to do in order to know exactly where your money is coming and going. This is one habit that the wealthy have mastered.
Wealthy people don’t just look at their finances once or twice a year. They look at them ALL the time. They know exactly where their money is coming and where it is going. They don’t spend what they don’t have and they certainly don’t spend just because they can (otherwise they wouldn’t be wealthy!).
Creating a budget is the first step to financial success. Tracking how much money is coming in and how much is going out will help you understand areas that you can cut down on spending and ultimately save your money.
So how do you start a budget? Check out this article Budgeting 101: How to Start Budgeting for the First Time. You really just need a notebook and a few minutes of time to get your budget going. The key to successful budgeting? Being consistent!
3. Live Within Your Means
This is not a new concept and you have likely heard it before. But did you know that this also applies to the wealthy? Yes, they may have more money than 99% of us, but, they have it for a reason. They don’t spend what they don’t have.
One common bad habit of the middle and lower class is that we spend what we don’t have. If we want the latest gadget, designer bag or bigger house then we try and make it work, even if that means taking out loans and digging ourselves further into debt.
The wealthy, more often than not, pay cash for those large purchases and do NOT take on more debt. If they can’t afford it in cash then they don’t buy it. If they would have to take out a loan then they don’t buy it. It isn’t rocket science, it’s good financial habits.
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4. Avoid Debt
Avoiding debt goes hand in hand with setting up a budget and living within your means.Piling on debt payment and constantly living paycheck to paycheck will forfit any chance of gaining and retaining wealth.
If you are currently in debt then the key is to get out of debt quickly. Start by making regular payments on that debt and in the meantime do NOT take out more debt! Set up a payment system and put as much as you can into those payments. There are many different ways you can go about this but the one I prefer is called the Debt Snowball Method. Check out the link for more information on how it works.
If you need a side hustle to make more money than start one! If you need to work a few more hours than ask your boss. If there are areas where you can save money, start now! We can all find ways to save money but make sure you use that extra cash to pay off your debt.
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5. Set Goals
Did you know that the most successful and wealthy people are goal setters? This probably does not surprise you but setting goals is one habit that can help you live a financially healthier lifestyle.
Wishing for wealth and day dreaming about wealth are NOT goals. You can wish for wealth for years but without action you won’t accumulate a dime. You need to be proactive and write down your goals – both small and large.
Writing down your goals is a very important step. If you don’t record your goals and write down subsequent steps for how you will get there then you are less likely to follow through and achieve it.
Take some time and write down your long term and short-term goals. Visualize what it will look like to achieve those goals and then brainstorm the steps you need to get there. You will need to break these steps into daily, weekly and monthly steps.
To help you get started, print off these goal setting sheets. Weather you are setting goals for your business or everyday personal life, these templates will help you get off to a good start.
6. Make Lists
Much like goal setting, the wealthy often write down lists to keep themselves on track. This may look different for each person (some may write them down; some may make voice memos etc.) but the point is to keep yourself organized using some method of list making.
According to a study on the habits of millionaires, it was revealed that 81% of millionaires made daily to-do lists and the majority completed at least 70% of their daily to-do list.
Why are to-do lists important? They keep you on track and help you achieve your goals. If you don’t write down the most important daily tasks for your personal and business life then you are more likely to forget or put off some important tasks.
Keep yourself organized with these To Do List Printables and aim to accomplish as much on your list as you can each day. Keep your list realistic to what you can accomplish in a day. This will be different for everyone. As a mom to two little one’s I know that my list will look different from someone who is running a full-time business. The point is to write down what you can realistically achieve in a day and keep yourself on track to achieve those items.
7. Read More
Did you know that most wealthy people read everyday? I am not talking about the latest best seller but rather they read to continuously improve their knowledge. This could be books about finances, personal development, and even history.
You don’t have to devote a lot of time each day but even just 20-30 minutes a day is beneficial. Make a list of some books that you would like to read and find a quiet time each day. If you commute to work then you could listen to an audiobook on your drive.
As a busy mom, I know what it is like to try and find a spare 30 minutes of quiet time! Yep, not really happening! That is why getting up early can help you get into a routine before your little ones awake. If reading isn’t your morning thing, try reading a chapter before bed. Either way, find some way to squeeze it in each day.
8. Exercise
We all know that exercise is good for us and will help us live a healthier lifestyle. Setting aside some time to get your sweat on is something that the wealthy consider an important habit.
It takes discipline to eat healthy and exercise and this is one habit that many wealthier people adopt. There are many great benefits of exercising including keeping your brain healthy and your mind intelligent. Just 30 minutes a day can be enough to help transform your health and your wealth!
In a study conducted by Thomas C. Corley, Corley found that 76% of wealthy people (those with a net worth of $3.2 million or more) exercised on a regular basis. He found that wealthy people placed more value on their health and well being and therefore included it in their daily routine.
So, if you are looking to get into better shape then there is no time like the present. You may just find that better health leads to better mental clarity, motivation and in the end, success.
9. Limit Distractions
Did you know that we spend, on average, more than 2 hours a day on social media and nearly 25 hours a week watching tv? That’s more than a day’s worth of time spent each week on things that ultimately distract us from our goals.
If you want to become successful then it may help to limit the amount of time you spend on things like surfing the net, watching tv and browsing social media. Don’t let those things limit your potential. Instead, fill your time with more important tasks such as networking with other successful people, volunteering and employing healthy habits that will help you reach your goals.
10. Stay Positive
Staying positive is perhaps one of the most important habits for financial success. If you have a detrimental outlook on life and consume your mind with negative thoughts then naturally your motivation and drive will follow suit.
Corley found that self-made millionaires had a positive mental outlook and therefore had greater success and ultimately greater wealth. Staying optimistic, even through hard situations, often leads to a happier and healthier lifestyle.
Staying positive can be challenging for some. It is easy to get stuck in a negative mind frame without realizing it. Checking in with your thoughts on a regular basis and assessing your feelings more often will help you get on track and will also help you keep motivated, solve problems and live happier.
So, there you have it, 10 habits of the wealthy that just might lead you into to a healthier and maybe even wealthier lifestyle! Just remember, wealth doesn’t lead to happiness. Happiness comes from being content and having a positive outlook regardless of your financial status. No time like the present to start off your day with a few more good habits:)