GET RICH; Develop 4 Wealth Habits

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“Nothing is impossible, the word itself says ‘I’m possible’!” Audrey Hepburn
I’ve been fortunate to know personally many folks of great wealth. Most of these individuals did not inherit wealth, but earned it the old fashioned way, through hard work. Many are entrepreneurs,

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some are not. My dad’s best friend worked for the IRS for many years, was an investor of the side, and died recently with a $10 million dollar estate. 

Here are common traits of HIGH NET WORTH individuals.

EDUCATION

Most of the wealthy in the U.S.A. have at least a college degree. Many have masters and doctoral degrees as well. The research is clear, college graduates earn more than those without. 

According to an InContext article from Indiana University (2006 data) entitled, Earnings of a Lifetime, greater education leads to higher lifetime earnings. Over a lifetime, those with a high school diploma can expect to earn $910,000 versus $1.1 million dollars for an Associates Degree. By retirement, those with a Bachelor’s degree or higher can expect, on average to earn $1.8 million dollars. That is almost a 100% advantage to college graduates! 

Complete college and boost your lifetime earnings. 

DELAY GRATIFICATION

Although a quick google search led to many articles linking wealth with delayed gratification, let’s look at acutal data. I discussed a research study, conducted in the 1960′s by psychologist Walter Mischel, with 4 year olds which found that those who delayed gratifiaction were more successful later in life. Does this relate to wealth as well? Think about it, if you are buying everything you want NOW, how will you be able to save large amounts of money for the homes, vacations, and retirement of the future. Simple, you won’t. 

Like in weight loss, if you eat everything you want right now, you will be fat; spend all your money now, and you’ll be poor. 

ACTION

The wealthy dive in and take action. They do not let their fear stop them. Actually, several of my blogging colleagues are on the action path, starting multiple blogs (Budgeting in the Fun Stuff & Extra Money Blog), creating products (Mark Riddix), and offering important services (Chicago Financial Planner). All of these action-oriented self starters have achieved or are on the way to future wealth. 

You must be willing to take calculated risks and FAIL. The difference between the doers and the dreamers is this; the doers dive in and take steps toward their dreams and the dreamers just dream. The cool thing about amassing a high net worth is that you don’t have to earn an extraordinary salary. But you do need to supplement your income with side hustles; consulting, side businesses, investing, real estate ownership etc. And, I guarantee that if you live extravagantly and above your means, you will remain a slave to the paycheck to paycheck life. 

PERSISTENCE

Many manyentrepreneurs give up just before they become successful. Whoopi Goldberg’s advice includes, “Develop a Second Skin,” (The View). Expect roadblocks, criticism, setbacks and detours. No one has “smooth sailing” along the path to wealth. Keep your goals WRITTEN DOWN and VISIBLE. Review them when you’re down. Commit to continue, no matter what. 

El Carino tells a story of his college roommate who was up in the middle of the night working on a difficult math problem. El Carino asked the roomate, “Why don’t you turn off the light and go to bed, it’s well past midnight?” The roommate replied, “I’m not stopping until I complete the problem. I’m working on it for as long as it takes.” Guess where his roomate is now? CEO of a Fortune 500 company! 

Read any success story biography, think of anyone you know who is successful, and you will find someone who doesn’t take “no” for an answer. 

ACTION STEP:

Get a notebook, label it: “(your name) Personal Finance” and store it by the computer. Use it to keep all of your personal finance goals, thoughts, activities, and plans. 

Choose a person or two that you admire. Ask them about their “success stragies.” Write in and tell me what they say!  

Check out passive income ideas to boost your cash flow!   

What are other traits that lead to wealth building? 

image credit; highpitch