Financial Habits Of The Wealthy

Did you know that 34 million U.S. residents live in poverty? About 80% of millionaires in America are self-made. The question then becomes, ‘How did they become wealthy?’ The wealthy, unlike the poor, have adopted successful money habits that we mostly overlook. Successful money habits are cultivated not only from practice but also by how we think about money.

Achieving financial freedom is a goal for many people, and there are numerous paths to becoming wealthy, from investing in real estate or the stock market to starting a business. However, there are wealthy habits you should consider adopting in order to attain financial freedom.

Why Develop Wealthy Habits

Wealth gives you the ability to live the lifestyle you desire. Whether you prefer a more basic lifestyle or a life of extravagance, you will need to build your wealth to acquire and maintain your optimum lifestyle. Other reasons why you need to develop wealthy habits so that you build your wealth include…

• Wealth will help you deal with unexpected health challenges.

• Wealth will help you bounce back after events such as natural disasters, tragedy or losses, legal issues, and so on.

• Wealth makes it easier to help those in need. This may include something as simple as providing your elderly parents with the best care and comfort when it comes to assisted living or something as complex as funding community events.

• Wealth leads to less financial stress. Hopefully allowing you to live a more fulfilling and happy life.

• Wealth will decrease the burden of financial restraint and debt so you will be able to afford a healthy retirement.

What Habits Do Wealthy People Have that Others Do Not?

Rather than flaunt their wealth, a wealthy person focuses on building their wealth and avoiding liabilities that others are more likely to spend their money on. Wealthy people have the following key characteristics that others do not.

• They set goals – They have a clear vision of where they want to be in life at a given time, either financially, in their career, or even in family life. They then come up with an action plan on how to get there. This allows them to stay away from what distracts them or wastes their time.

• They’re self-aware – Having set money goals, wealthy people continually self-evaluate themselves to identify whether they are on track.

• They observe healthier lifestyles (which may also be an advantage of wealth).

• They network with like-minded individuals where opportunity may present itself.

• They develop the ability to successfully manage their finances and build their financial literacy.

What Are the Wealthy Habits You Should Adopt?

Develop a Growth Mindset

There are two types of mindsets:

• A fixed mindset – In this case, the individual feels that they are more knowledgeable in a particular field than the vast majority. They perceive any challenge that demands that they get out of their comfort zones as an inability. A person with a fixed money mindset always blames something else for their less-than-ideal circumstances. Whether it is bad advice, a flopping economy, or a low-paying job, the problem is always beyond their control.  

• A growth mindset – Rather than shying away from challenges, a person with a growth mindset relishes the opportunity to learn through them. Such an individual thrives on constructive criticism and feedback as it helps them better themselves.

By developing a growth mindset, you will be more likely to seek a solution to your undesirable financial situation rather than decide that you just got the short end of the stick.

Invest

This not only means investing in financial opportunities and assets but also in yourself. Unlike financial investments, investing in yourself tends to pay off. You can invest in yourself by furthering your education, reading up on how to start investing, or taking advantage of mastermind groups, mentors, and other resources to enhance your skills. Investing in yourself also means living a healthy, balanced lifestyle.

Have Multiple Income Streams

Financial security is perhaps the most obvious benefit of having multiple income streams. Making your money in more ways than one means that should your take-home pay reduce, you have other income options that will keep you afloat. With more disposable income, you can attain your financial milestones faster.

Seeking to have multiple income streams also supports a growth mindset. This is because it grants you the opportunity to explore skills that are beyond your regular scope.

Take Calculated Risks

To be wealthy, you need to take risks where other people are more hesitant. However, you need to do so after thoughtful analysis of all the variables. Rather than being afraid of failure, view it as part of discovering what will or will not work.

What differentiates the habits of the wealthy is the ability to successfully manage their finances: tracking spending, making calculated investments, and sticking to financial goals.

See how an app like Monorail can help you create positive financial habits in your life.

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