After closely studying money values of financially successful people, we’ve come up with 12 essential money mantras that this elite group of individuals swear by.
Who doesn’t want to be rich and successful in life? We’ve all harboured dreams of becoming wealthy at some point in time. After closely studying money values of financially successful people, we’ve come up with 12 essential money mantras that this elite group of individuals swear by.
So, fasten your seatbelts as we find out what makes these people tick.
They believe in savings:
“Who doesn’t believe in saving money?” you might ask. But remember, acknowledging that saving money is important and ACTUALLY saving money are two entirely different things.
Even though we know how savings can affect our future, most of us don’t really put in the required effort to build our savings. Financially successful people not only understand the importance of savings, but they follow this mantra with religious fervour.
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They follow a budget:
Financially successful people plan their budgets and make sure that they follow it to the T. They strike a fine balance between expenditure and savings with the help of budgets they draw up.
They identify expenses that are necessary and figure out which expenses are avoidable. In fact, most financially successful people tend to adjust their lifestyle according to their budgets instead of planning a budget according to their lifestyle.
Additional Reading: A Superbly Easy Way To Keep A Budget
They indulge in cost-cutting:
Once they figure out their needs and wants, they make it a point to cut down on splurging unnecessarily. It is one of the primary ways of cost-cutting followed by financially successful people. Other than that, they try and find cheaper alternatives to satisfy their needs, thus helping them save more money in the process.
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They make the most of their time:
Time is money. Those who live by this saying have a better chance of being financially successful in life. People who are smart with money know the importance of time and make the most of it by finding ways to earn more and save more.
Financially successful people perfectly utilise their time by working harder and working smarter. They find new avenues of monetary growth and spend their spare time looking for other ways to increase their bank balance.
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They believe in long term financial planning:
Financially successful people think beyond the present and plan for events that might occur in the future. They plan their finances according to their future needs and take the necessary steps to meet those needs.
They foresee things at an early stage and diligently put aside funds for their future requirements. Planning for your child’s college education or building your retirement fund can be termed as examples of long-term financial planning.
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They set financial goals and set out to achieve them:
Most financially successful people don’t become rich overnight. Behind their success is a series of financial goals that were set and achieved over a period of time.
Even though they plan for the long term, they ensure that they break down their plans into attainable, short-term targets that they strive to meet. By completely focusing on each goal before moving on to the next one, they ultimately manage to grow their wealth over a sustained period of time.
Additional Reading: How Not To Go Wrong While Planning For Your Future Goals
They control impulsive spending:
The reason why most of us struggle with our budgets is because we succumb to the sudden impulse of spending money. Financially successful people are strong enough to control their impulses and ensure they don’t splurge money unnecessarily.
Additional Reading: How To Bounce Back After An Unplanned Splurge
They track and pay off debts on time:
There’s a good chance many of us, including financially successful people, have had to deal with debt or outstanding dues at some point in our lives.
Whether they are in the form of loan EMIs, Credit Card bills or even owing money to friends, what separates financially successful people from everyone else is their willingness and commitment to paying off their debts on time, every time.
They manage their finances accordingly so they can maintain a balance between paying their debts and meeting expenses.
Additional Reading: Help With Credit Card Debt
They make well-informed decisions:
Poor financial decision making is one of the main factors that lead to financial ruin. Most people tend to make hasty decisions without taking the consequences into consideration, while others rarely pay heed to good financial advice.
However, a smart, financially successful person carefully chalks out the pros and cons of a decision, analyses if the risk involved is worth it and only then makes an informed decision.
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They seize opportunities:
Most people believe in the proverb ‘strike while the iron is hot’. According to this proverb, the majority of us believe that we should make most of the opportunity when it comes knocking at our door.
But, financially successful people think differently. They believe in creating opportunities instead of waiting for them. They willingly take calculated financial risks, create their own opportunities and cash in it at the right time.
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They invest in a variety of schemes:
They have a wide mix of investments with money invested in different schemes like Mutual Funds, stock market, real estate, bonds, Fixed Deposits etc. This way, they make sure that they never run the risk of losing a lot money since the loss incurred on one investment might be compensated with the profits attained from other investments.
Additional Reading: Tips For Ideal Portfolio Diversification
They are patient:
Patience is the virtue of financially successful people since they know that it takes a lot of time and effort to build savings. Money doesn’t grow overnight after all, and if you aren’t patient, especially with your investments, your chances of increasing your wealth over a sustained period of time could be very slim.
Additional Reading: 5 Personal Finance Lessons From Mahatma Gandhi
Now that you know what makes financially successful people tick, let’s see how many of you implement these tips and climb the ladder to financial nirvana.