April
29, 2019

Read for 8 min

The opinions expressed by the entrepreneur's contributors are their own.

In a world with average people – and average salaries – many of us strive to join the 7-digit club. Who doesn't dream of getting rich so that they can stop working, shop without guilt, and take endless vacations?

Most rich people don't do these things, however, and that's how they build and maintain their wealth. There is a difference between a life with careless spending (which quickly debits a rich person's bank account) and a life for long-term financial independence and prosperity.

The self-made rich aren't necessarily smarter than everyone else, but they've mastered some important principles that will help them get ahead and stay ahead. Most importantly, they see wealth building as a learnable skill – and you can learn it.

So if you want to join the ranks of the super rich, try to improve these 10 habits and lifestyle changes and see what financial freedom really feels like.

1. Think of financial growth.

Wealthy people are incredibly creative when it comes to thinking about business and finding different ways to make money. Mega-successful people are characterized by maintaining an attitude to financial growth that changes your view of money and helps you focus on identifying profitable opportunities.

This mindset helps successful and wealthy people to believe that there are bigger and better projects to work on and that more and more money has to be made. You are open to new ideas. They believe that they are always able to make changes and achieve a positive result.

Related topics: How to create a growth philosophy as an entrepreneur

2. Network with other successful people.

Wealthy people know how important it is to surround themselves with other successful people. Wealthy people spend time networking with others who are rich but who also have drive, talent and above all the potential to become wildly successful. The rich spend time each month getting to know other like-minded people at conferences, events and gatherings, or just drinking coffee or a drink with someone who is interesting.

This is time that is invested wisely as they focus on success and meet new people who have fresh and thought-provoking ideas. This way, wealthy people can fill their contact lists with relevant and influential people who may be able to help them (and vice versa).

3. Leave your comfort zone.

Wealthy people are successful because they have learned that success applies to those who feel a little uncomfortable. You understand that the only way to really improve is to move beyond your limits. If you want to get rich, you need to fuel your creative spark, develop unique business ideas, and then take the plunge.

Prosperity and success do not come from the security of a 9-to-5 job. You come from using your inner strength and realizing your big dream. All successful managers, visionaries and pioneers have crossed their comfort zones to achieve the ultimate success. The people who will go down in history had the courage to face their fears and take the first step into the unknown.

Related: Why you have to step out of your comfort zone

4. Create multiple income streams.

The more money you have, the easier it is to make more money. And the easiest and quickest way to make more money is to have multiple sources of income. This way you always have money and can use the excess income to invest in new income streams. In short, this is the main way that the rich stay wealthy.

There are two basic types of income: active income, where you work for the money you earn, and passive income, where payment is not directly tied to the number of hours worked. Passive income includes rental properties, dividend stocks, index funds, writing a book or creating an app. All of this leads to a steady flow of income from sales or royalties.

5. Invest.

Rich people make their money for them. They know that investments are the key to growing their finances. While saving money for a rainy day is important, your investments will do the heavy lifting to help you get rich.

Saving means keeping money in a safe place until you want to get it. However, most savings accounts are not high-yielding. So basically this pile of money remains static – it won't grow much beyond what you add. But smart investments bring you healthy returns that you can then reinvest. When you invest in something, you also take a certain risk, so you never want to invest more than you can afford to lose.

6. Take calculated risks.

The rich don't gamble on big financial decisions. They do what they can to reduce the risk. They research and analyze and determine which options best suit their financial needs and business needs. You weigh the advantages and disadvantages and then take calculated risks.

They make financial decisions by asking, "Does that bring me closer to my goal?" They avoid reckless risks that don't really benefit them and never take a carefree attitude when it comes to money.

Related: Entrepreneurship is a game of calculated risk

7. Focus on self-improvement.

Wealthy people are usually enthusiastic readers, but you won't find many senseless beach novels in your bookcases. The rich understand the importance of self-education and strive to improve in every way. If you look at the books that are stacked next to their beds, you will usually find titles for self improvement.

While 85 percent of the rich read two or more self-improvement books per month, only 11 percent read for entertainment, compared to 79 percent of the poor. And a whopping 94 percent of the rich read news, compared to 11 percent of the non-rich.

8. Never fully retire.

The ultra-rich certainly have enough money to never work a day in their lives again, but most of them continue to work at least to some extent, often well over 70. That doesn't mean they spend long days in the office ;; In fact, they are likely to take their fair share of the vacation and enjoy flexible schedules. But many rich people never completely retire. This is not because they cannot afford it, but because they enjoy what they do.

Many are entrepreneurs at heart, and the desire to run and grow a business never lets go. The stability of the work and the sense of purpose and fulfillment they give them are an important part of their general happiness. The work gives them a lasting feeling of success and the goal of keeping them focused. Not to mention that it keeps the money going!

Related: 6 Hardcore Steps to Retire at 50

9. Avoid spending too much.

While non-wealthy people dream of spending money carefree, buying chic cars, big houses, and expensive clothes, the rich understand that the more money you spend, the less you have. The rich would not stay rich for long if they spent too much. No matter how much money you make, you will always be poor if you spend more than you earn.

The richer the rich are, the less money you have to spend to increase your wealth. Remember that frugality is relative to your income – a wealthy person can spend a lot more than someone who is considered a middle class. But relatively speaking, the rich are usually frugal and make sure they don't spend too much.

10. Take your time to think.

Many of the self-made rich spend time each day with concentrated thinking. When you spend 30 minutes (or more) in a quiet room, you have time to think about your life and goals, think about your health and relationships, consider your career and financial goals, and analyze where you are and where they want to be. Critical considerations are important in order to be one step ahead of the market and to consider which changes you could face.

This is also time to focus on self improvement and working through ideas. Some may opt for journaling or writing to find creative solutions and ideas. Just make sure you spend your time thinking productively. Don't waste your mental energy on rumination or negative thought loops that make you guess yourself. The rich don't.

LEAVE A REPLY

Please enter your comment!
Please enter your name here