A high-paying job or a huge inheritance is often thought to be the key to creating wealth. Truth be told, they’re useful. But there are other ways to get rich as well. Your money habits make the difference between a life of wealth and a life of financial struggle.
A lot of research has gone into observing the habits of the rich. And if you are looking to build wealth, you have got to start with your habits. Here are a few you must inculcate.
Set Some Goals
Goals give you a sense of direction on what to do with money. If you don’t know where you want to go, how can you possibly get there? So start with chalking out your goals. Track your progress at regular intervals. When you know where you want to go, financially speaking, you’ll be determined to find the instruments that will help you get there. In 1969, a 28-year-old Bruce Lee set himself the arduous goals of being the “highest paid Oriental super star in the United States”, achieving world fame, making the highest quality action films, and having $10 million in his possession. By age 32, just before his untimely death, Lee had achieved all those goals.
Stay Informed & Updated
The rich try and stay ahead of the world by upgrading their knowledge on a constant basis. They read for both business and pleasure and interact with knowledgeable folk to stay updated. Remember, reading is a powerful tool to give you an edge. Bill Gates, the richest man in the world, is known to read 50 books every year – one every week.
Maintain Your Individuality
Self-made rich people don’t blindly follow the herd. They question irrational practices and maintain originality of thought. They contribute to the world in their own unique ways. Steve Jobs changed the world of cell phones at a time when every phone maker was focussed on fashion rather than innovation. Jobs bet on his touchscreen smartphone, which has now completely transformed communication, media, and businesses. The iPhone has earned its company billions of dollars, cementing Jobs’ position among the great inventors of all time.
Take Risks
The rich invest in risky asset classes such as equities to grow their wealth at a faster pace. Such market-based asset classes have a certain amount of risk associated with them. The richest people take these risks to improve their chances of growing wealth. The world’s richest investor, Warren Buffet, made his wealth through equity investing. The billionaires of the world derive their wealth largely through their equity holdings rather than a monthly paycheque.
Find Time For Self
With hundreds of things demanding our attention every day, we often end up taking our bodies and minds for granted. It’s important that you block time for yourself and do things that are important to you. Most successful people block time for themselves on a daily basis to get their tasks done on time. As he eased into one of the most difficult jobs in the world, the president of the United States, Barack Obama, quit smoking, took control of his diet, and exercised a solid 45 minutes, six days a week. He says, “You have to exercise or at some point you’ll just break down.”
Remain Positive
The successful never lose hope even if they face hurdles. They stay focused and positive. They look at problems as challenges and keep solving them. Nothing can make them give up on their ambitions. Before she became a billionaire, world-famous author of the Harry Potter series, JK Rowling, went through a dark period in her life where she lost her mother, got divorced, survived on government doles, was depressed, penniless and jobless, and considered suicide. “Rock bottom became the solid foundation upon which I rebuilt my life,” she said, describing her journey to becoming the wealthiest writer in the world.
Remember: success is not an end-game. It’s a mindset. When you have the right habits, you’ll also have the right mindset, and set yourself on the path of wealth creation.
(The writer is CEO, BankBazaar.com)