15 Secret Things Rich People DO - Poor People DON'T - Wealth Habit
|Rich People Choose To Do That Poor People Don't
If you want to be successful, here are the very important life principles that you need to learn.
And What habits of rich people do you practice? What habits are you working on? If you want to build more wealth, knowledge is not enough. You must also pay attention to habits. Look at your daily routine as well as your money habits and see if your behavior matches those who have the success you desire!
1.Rich people Save and know what you Spend
People who become rich don’t wait to see what’s left over at the end of the month… they prioritize saving! Often, saving happens automatically through bank transfers into savings accounts, whole life insurance premiums, and retirement plan contributions.
Since earning more than you spend is essential to wealth building, you can increase your financial success by saving first. Prioritize saving and if you can, automate it so that saving happens without any action necessary.
There is a myth that one of the advantages of being rich is being able to spend all you want without giving a thought to the cost of anything. In reality, the opposite is true! The wealthy get that way precisely because they pay close attention to money flowing in—and out.
Wealthy people don’t spend frivolously or unconsciously. They spend intentionally and according to their values. They abhor waste. According to The Millionaire Next Door, wealthy people often comparison shop, repair rather than purchase new, and buy things “out of season” to get the best price. And they track their spending meticulously (or have a bookkeeper track it for them). If you find yourself wondering where your money goes… this is an essential habit to adopt!
2.Rich people know When to Speak
The really rich always do things very differently. They don't talk too much about their money, don't try to show off their wealth to those around them.
They are always frugal about their finances. Their costumes are usually of good quality and aesthetically pleasing, but not ostentatious. Only colorful people always wear branded clothes, always want to attract attention and pretend to be rich.
Extravagance and exaggerated boasting indicate that the person is just the rich type, rising from poverty too quickly and that he or she wants to show that he belongs to the “upper caste” in society.
3.Rich people associate with talented people and successful person
|Bill Gates and Warren Buffett are friends who speak highly of each other. REUTERS/Rick Wilking
Billionaires are very picky when it comes to choosing friends. Rich people believe that experience is priceless. If you know someone who is successful and is willing to share their knowledge without taking advantage of that opportunity then you are stupid. In addition, they never want to spend time with useless people who only know how to complain, but have no will to advance.
Steve Siebold, the author of How Rich People Think, says that rich people surround themselves with like-minded people. Whether mentors or colleagues, they are people who are committed to the same mission and goals. Surround yourself with people who are successful, driven, and hard-working and they will inspire you to be the same.
Mark Twain once said, “Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great.”
They love to learn what other rich people have learned and are happy to share their own lessons. If you hang around successful people, you get inspired and motivated.
Poor people surround themselves with other poor people. Poor people reinforce their bad beliefs.
Note: Rich people seek expert advice - Poor people seek amateur advice
4.Rich people don't waste time for impressing others
Owning expensive items doesn't define you, as anyone can have these items via credit card or installment.
Expensive things do not bring happiness, they even put pressure back on you. Don't try to race for wealth with friends or colleagues. We never know their true financial situation. A lot of people appear rich but actually have a lot of debt and no savings.
Shopping indiscriminately just for the sake of showing off their wealth and living on credit cards, is the expression of people who never think about the future.
|Poor people are skeptical
I distinctly remember a former coworker of mine saying, "Those mechanics are a rip-off! They're always looking for the weak people. They'll charge you when you're not looking!!" He thought that everyone unjustly wanted his money and that everyone is out there to get him.
Rich people are trusting
Surprisingly, a great deal of rich people leave their car and house doors open. Conversely, in areas of poverty, you'll find that this behavior is highly unlikely to happen. Rich people have the tendency to trust those they meet (within reason) and give others the opportunity to be themselves.
5.Rich people buy comfort, don't buy expensive and they use their credit wisely
When they use credit, they buy things that pay off in the long term, like their education, their new businesses and their long-term improvements. They only buy useless things with their extra cash.
Poor people use credit to buy expensive phones, clothes, tickets, travel, expensive gifts and so on.
Steve Jobs, co-founder of Apple when he was alive once said: “I see many people working at Apple and becoming very rich, but they are not happy. Some people buy Rolls-Royce supercars, others have managers who take care of their homes, then even more senior managers. Their wives keep getting plastic surgery and become someone else I can't recognize. I don't want to live like that, it's crazy."
Buying too much or too expensive is a wrong decision, because they take away a lot from you while bringing little value. For the truly wealthy, any purchasing decision must be based on current finances, and the direct benefits they derive.
6.Rich people set financial goals and building financial security
The rich people always have to deal with the “miners. They learn to rely on themselves and two principles that separate relationships from finance, that is, don't talk too much about income, and never put all the money in a single account.
This is not a matter of belief, but of vision. Everyone needs financial security, because one day there will be an emergency to use, and this will make you feel more secure.
For example, “Retire at 55 with no debt, a nice house and $1M in savings.” They then figure out how much they need to save, each year and each month, to reach their financial goal.
Once they set their goals, they write them down and put them somewhere they see them each day. For example, a sticky note behind a bathroom mirror, on their home screens or in their wallets.
Poor people have no financial goals. They do not see the point.
7.Rich people share, give back and know how to say thank
If money is one's ultimate goal, that person will gradually become blind to reality. So the rich always spend money on charities, so that they can help those in need.
Real rich people understand that a lot of money comes with great responsibility. Those who do not understand this are not happy. They live only in prison, but in gold, not through bars. Many people think that the more money the happier, but for the truly rich, they are no longer fooled by this illusion. The most important thing for them, is to find meaning and value for their money, instead of using their position to make life meaningful.
Truly prosperous people give of their “time, treasures and talents” to help others. Whether volunteering at church, mentoring at-risk youth or donating to help children in crisis or save endangered species, it is a gift to be able to give!
Author Thomas J. Stanley notes that his research indicates that generous givers tend to build more wealth (such as 10%) than those who give little (<1%). That may be counter-intuitive, as they have less money to work with after donating. He surmises this may be because those committed to giving become disciplined to manage their finances accordingly. They watch expenses and prioritize what matters most to them!
Thank you is not simply a courtesy, but it is also a great power to human consciousness. The rich always thank their gardeners, garbage collectors, security guards, parkers, etc., because they understand that it is those dedications that make them successful. They appreciate the work of others and don't take it for granted. They make people feel motivated and want to try harder. This brought great success.
Acknowledgment builds an emotional connection with others, and can even inspire them.
|Poor people find fault
People who are poor are always looking for the problems instead of the solutions. They end up blaming their environment, circumstances, jobs, weather, government, and will make an extensive list of excuses as to why they cannot be successful.
Rich people find success
Rich people understand that everything happens for a reason. Rather than letting life happen to them, they take direct action and make big things happen. They put aside all the excuses and eradicate their blame lists because they have to do what must be done.
8.Rich people prioritize Health
They exercise, read food labels and control their urges. They get yearly checkups and follow their doctor’s advice. They know good health means more energy and a longer, happier life.
Poor people eat unhealthy food. They hate doctors. They ruin their bodies with sugar, salt and fat.
Rich people are much more likely to eat healthy food and keep “junk food” to a minimum, says Thomas Corley, author of Rich Habits, Poor Habits. This may be impacted by education, better access to fresh food, or a bigger food budget.
Coupled with healthy eating, successful people also tend to stay fit by exercising. In their research for The Millionaire Next Door, Thomas Stanley and William Danko found that wealthier people were disciplined to exercise more than 3 hours per week. Corley reports that 76% of wealthy folks do aerobic exercise at least four days per week, compared to 23% of low income people.
9.Rich people are lifelong learners and Read books
|Wealthy people are educated and read a lot of books.
Books contain a wealth of ideas for a tiny price, but you have to read and understand them.
Rich people constantly education themselves. The top America CEOs read 50 books on success per year. The average American reads 1.5 success books per year. How many do you read?
Tom Bilyeu went from being a lazy underperformer to building Quest Nutrition, a billion dollar company, and the influential Impact Theory, a show that interviews top authors, business people and thought leaders. How did he do it? Tom credits Carol Dweck’s work on Growth Mindset. When Tom realized that he could continuously expand his skills, talents, and knowledge, it gave him the confidence to succeed.
Successful people tend to learn through their reading habits. The average millionaire reads for at least 30 minutes a day, reports Corley. They are much more likely to read non-fiction books, while poor people tend to read only for entertainment. The most common books and reading materials relate to current events, their career, personal development, or biographies of successful people.
Note: Rich people have big libraries - Poor people have big television sets!
10.Rich people believe they are responsible for their own result and fate
Over 85% of millionaires and billionaires are self-made. They did not inherit their money, steal their money nor win the lottery. They know they need to earn their wealth. When bad things happen, they learn.
Poor people expect others will save them. They blame others for their problems. They wish and hope someone will come along to give them their wealth.
Wealthy people take responsibility. They are self-starters. Wealthy people own their thinking, own their actions, and own the results they produce.
Successful people don’t blame others and they aren’t concerned about who gets the credit. Rather, they are focused on what they are accomplishing and the impact it will have, whether on their own or with collaborators.
11.Rich people sacrifice the present for the future
They invest time and money into their future. For example, they invest time and money into their education, their planning, their careers and their value. They spend their nights improving themselves, their careers and their businesses. They face their problems.
Poor people like to take it easy and enjoy the present. They watch a lot of TV (entertainment, news and sports), socialize online and offline, play video games, party, travel, eat, drink and be merry. If it helps them to escape from their problems, they do it.
Successful people are mindful of how they use their time all week long. They may use a time-blocking system such as Dan Sullivan’s Entrepreneurial Time System. They will also outsource busy work so they can use their time for revenue-generating activities.
Many successful people also avoid spending much if any time on social media and they watch little if any television.
|Poor people think money is more important than time
Millions of people all over the world are trading their precious time for money. You can always get $500 back, but you can't get 50 hours again. Nonetheless, the majority of people trade time for money and never realize their true potential because of it.
Rich people know that time is more important than money
Rich people never trade time for money. Moreover, they seek fulfilling experiences that dramatically alter their lives. Their careers are more focused on doing what they love and helping others, instead of merely clocking in for a meager paycheck.
12.Rich people take calculated—not foolish—risks
Rich people take risks to learn new things, develop new skills, and expand their comfort zones. They are likely to start a business and invest in businesses and/or real estate. All of these actions require risk but can also offer substantial rewards.
What wealthy people DON’T do is gamble! According to Money Crashers, only 6% of wealthy people ever play the lottery, compared with 77% of poor people. Poor people see the lottery as a way to “get lucky.” Rich people know that positive actions, habits, and thinking create opportunities for good things to happen.
13.Rich people focus on opportunities, not problems
Problems are seen as opportunities to be solved, not insurmountable road blocks or something to simply complain about. Problems may even present themselves as opportunities to start or expand a business!
When lockdowns happened, many smart people found a way to “pivot” their work or business to meet the new reality. Events, classes and lessons were held online, masks were manufactured, and alternate ways of earning money arose.
A focus on opportunities also lends itself to one of the keys of wealth-building: diversified income. It is said that the average millionaire has seven streams of income. That’s because they are always on the lookout for opportunities!
14.Have a morning success routine
Rich people tend to get up earlier than others—an average of about 6 a.m. Corley found that 44% of wealthy people wake up three hours before work starts, compared to just 3% of poor people. Robin Sharma, who mentors business leaders, has a “5 AM Club” (and a book by the same name).
Mornings are a time for planning and preparing, also for prayer or meditation and reading. Many successful people also get in their workout in the morning. What successful people don’t do when they wake up is check email first thing. As Mel Robbins says, you should set the tone for the day before you start responding to the requests and demands of others.
15.Rich people Never Retire
According to a Gallup poll, the average retirement age for Americans is 61. However, most wealthy people don’t plan to retire until at least 70—not because they have to keep working, but because they want to.
Working longer also makes a huge difference in one’s wealth. Often, people earn more money in their 60’s—or beyond—than in previous decades! In “Redefine Aging,” we profile, among others, Berkshire Hathawahy’s Warren Buffett and Charlie Munger, who are still going strong at age 89 and 96.
We believe it’s time to re-think retirement—for many reasons. If you love what you do, make a positive difference, and are earning a nice income, why quit? As we say in Busting the Retirement Lies, do what you love for as long as you can—and keep creating prosperity!
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