Rich people habits you need to try self-made millionaires fascinate me with their daily habits. They aren’t more special, smarter, hardworking, or more genetically gifted (although you might argue some are). What makes them stand out to me besides their money is their habits and mentality. You see, failure and success are determined by what we do every day. The reason the rich are rich is that they developed good habits that make them more successful. The wealthy have very disciplined qualities in accumulating wealth and health. And so, in today’s episode, we will be looking into some of those habits.
11 Rich People Habits That Will Change Your Life
1. Become a Risk-taker
I know people that have lost money and some that haven’t lost money when it comes to investing. The difference is of all the rich people I’ve met; they’ve all lost money. They took calculated risks, and they weren’t scared of losing money in the process. Don’t throw away your life savings to prove this point. Just know that the higher the risk, the greater the rewards.
The rich live by this. They took calculated risks to get richer. Before investing in anything, research and learn about investment options. Then slowly learn how to take calculated risks. There are so many resources on investment portfolios and the dos and don’ts in investing. You can be an aggressive or conservative investor. The world of risk investment isn’t for the faint of heart, and the trick is to do your research before you dive into it.
2. Become an Early Riser Early to bed, early to rise.
Going to bed early is essential for a good night’s sleep and productivity for the next day. Also, setting a night-time routine guarantees sufficient sleep. If you want great rest, an hour before you retire to bed, you shouldn’t use your tech devices. Put aside your phone, turn off Netflix, and switch off the TV. Now, clean up, prepare for bed, get cozy, (read a bit if you want) and get your rest. Healthy adults need 7-9hrs of sleep. If you tend to watch TV till 3 am, chances are you’ll be very fatigued the next day, and you’ll feel burnt-out and unmotivated when you should be more productive.
According to Thomas C. Corley, the author of the book “Rich Habits: The Daily Success of Wealthy Individuals”, In his five-year study of 177 self-made millionaires, he found that nearly 50% of them woke up at least 3 hours before their workday actually began. By the time work starts, they’ve read the news, had their breakfast, done their exercise, and gotten ready for the day.
Early morning hours are the quiet hours with zero interruptions, and where you can do whatever you need to do. Some people exercise, some meditate, while some read. Everybody should claim these hours. Because it feels better to start your day without the hurried mess and this will make the rest of your day so much better.
3. Health is Wealth
Rich people know health is vital to their productivity. So it’s essential to associate with healthy practices, for the best outcome. Let’s start with what you eat. Feeding yourself poorly with junk food, won’t make you feel well and definitely won’t make you think well. Eating a balanced diet is important. So, of course, buying fresh produce to create a balanced diet will cost more than buying soft drinks and junk foods. But you must know that to live to enjoy the financial investments you have to first invest in yourself.
Exercising is also another essential aspect of healthy living that rich people do. The common excuse that exercising takes a lot of time is, frankly speaking, old-fashion, and inexcusable. Rich people have the least amount of free time, yet they manage to exercise. They understand that health and wellbeing have no price tag. Regular exercise boosts energy and uplifts your moods.
Also, exercise can control your weight and can give you better sleep. Plus, you don’t need special equipment and gym memberships. You can start by walking, jogging, and doing home exercises that won’t cost you a penny. Remember; Healthy meals and exercise go hand in hand.
4. Simplicity and Minimalism
Not all rich people live lavish lifestyles (Just read the book, “The Millionaire Next Door”, by Thomas J. Stanley). Most wealthy people (Not all), live simple, non-extravagant lives. Warren Buffet put it this way “If you buy things you do not need, soon you will have to sell things you need.” As the rich build wealth, they develop the habit of differentiating “essentials” from “luxuries” (It’s a habit wealthy people live by). They might purchase a few luxury items when it’s well within their means.
After all, you only get one life, but they know you can only live in so many houses and drive so many cars. The Rich make critical decisions every day, risking millions of dollars in their investments and businesses. The human mind is only capable of making so many good decisions, a day. With this in mind, wealthy people simplify whatever is around them. And this habit is noticeable in the likes of Mark Zuckerberg and the late Steve Jobs. Simplicity and not over-complicating basic life is an important daily habit for the rich.
5. Financial Literacy
The rich diligently control their finances. They create and keep budgets, and they are not compulsive spenders. They track every cent that comes in and goes out. The rich are in total control of their finances. Personal finance is an important skill everyone should learn. Not a lot of people were taught finance in school, and so many lack this critical skill to make important financial decisions. Believe it or not, not many adults are financially literate! Yet their counterparts; “the wealthy”, are very financially literate. It would help if you learned about finances to be in control of your finances. Track your spending, track your savings and investments, learn about credit and interest rates, and have a budget. This will be the start of an effective personal financial journey.
6. Become Goal-Oriented
Most rich people’s dreams transcend, driving a nice car and owning a big house. To their peers, however, these dreams seem unreachable. Many rich people believe in shooting for the stars such that in case you miss, at least you land on the moon, and this is a fundamental maxim. You should have a motivation factor. It would be best if you had a dream that pushes you to do way more than you believe you can. And you have to work hard to achieve it. Merely wishing and praying isn’t going to cut it.
You need a clearly defined goal and a plan on how to achieve it. The wealthy have a detailed daily to-do list, and they follow through with everything that needs to get done. That’s what you should strive to do every day. If you want to quit your job to start a business, but you don’t have a detailed plan of action, you should keep your job. If your goal is to get out of debt, or save 50% of your income, or maybe lose 40 pounds, and so on, plan and take the necessary daily steps to achieve it.
Then wealthy, read a lot! Joseph Addison said, “Reading is to the mind to what exercise is to the body”. They read numerous self-help, fiancé, and nonfiction books, and they continue learning and bettering themselves in all capacities. For example, Mark Cuban said he reads for three hours a day. And since most rich people are self-employed, they continuously learn and educate themselves.
There is so much to learn from books, such as learning about history, lifestyle, culture, money, and human nature. Many people don’t like reading, or they claim they don’t have time to read, yet reading is an opportunity to tap into a vast wealth of knowledge. If you want to get smarter, make more money, become a more interesting person, or maybe sound intelligent, then you should carve out time, to read.
8. Value Your Time.
Among a few other things, money can’t buy you time. Time is a limited resource that we all have. Each and every one of us is given a few years here on this earth, and what you do with that time, is totally up to you. Some people chase money in the form of financial independence, some chase a legacy, some choose to serve, and others chase women, among other things. Whatever you end up doing or chasing, just know, you can only do it for so long. Your clock is running down.
Jim Rohn said, “Time is more valuable than money. You can get more money, but you cannot get more time.” The rich know that time is money and they do everything to maximize theirs.
And although yes, you can’t buy more time, you can buy freedom. To either spend time with your family and loved ones, or travel the world, or do whatever you want. And the rich, or anyone actually can do this by creating or acquiring an asset that will generate for them sustainable or in some cases substantial income. They do this either by investing in passive income streams such as real estate, stocks, bonds, and so on or by starting or acquiring businesses and then hiring people to run them.
9. Value of Relationships and Network
The value of relationships you foster determines where you’ll end up in life. Remind yourself that birds of the same feather flock together. Just like time, you can’t buy relationships. There is value in friendship and network, and in life, like-minded peers are crucial to your success or failure. Focus on fostering meaningful relationships. Let go of toxic relationships that will only mess you up. Outgrowing people is a part of life, and finding new networks aligned with your goals is what you should aim for.
The rich surround themselves with those people that question their beliefs. They know critical thinking is vital in wealth creation. If you’ve never hunted in your life and you want to hunt, you surround yourself with hunters. People love their comfort zones, but if you’re going to achieve that goal, you should be with people that don’t think like you.
10. The act of never giving up.
Just possibly, the reason you aren’t rich and successful is that you could be a chronic quitter. The rich seldom quit. They have a winners mentality, and with their minds set on a goal, they move swiftly and actionably towards achieving it. Growing up, you might have given up on sports, arts, and other activities, so habitually when anything gets tough, you quit.
To achieve anything worthwhile in life, this is something you have to change. Learn to write your goals and dreams, or have a vision board of where you want to be and place it where you can see it every day. Seeing your goals and dreams every day is the motivation you need, even when some days are tough.
11. Time and Value
The rich are creators rather than consumers. They don’t spend a lot of time on social media or watching TV. It’s the time versus value for them. Spending the whole day watching your favorite reality show might be fun for a while, but besides a couple of laughs with your mates, it won’t bring any meaningful value to your life. An hour or two watching your favorite series could have been used in creating a blog, or learning money-making skills among other things.