Everyone wants to be wealthy, wants to be comfortable and experience financial freedom but quite a few are experiencing such. Recent statistics shows Nigeria now have the largest population of people living in extreme poverty with an estimated 87 million Nigerians living on less than $1.90 a day, this statistics was compiled by Brookings Institute for World poverty clock.
Why are so few people wealthy and we have a lot of people struggling with their finances.
What are these few wealthy people doing differently that we need to do in order to experience financial freedom like them?
Here are 10 habits of wealthy people that can also make you wealthy.
Learn the secrets of success from those who built their own empires from scratch. You can try adopting the habits of super rich people and see how it will help you save money.
Most wealthy people didn’t get that way because they were lucky. In fact, the average rich person possesses money habits that most people balk at using in their own financial lives. But when it comes down to it, to become financially rich it takes excellent habits and financial discipline if you want to build wealth that lasts. In today’s article, I’ll show you many of the top habits of wealthy people and why they work. They’re not only common knowledge among most wealthy individuals, but they’re also proven by scientific research!
The Millionaire Next Door
The average millionaire looks a lot different than most people would imagine. When we think about wealthy people, most of us tend to think about famous singers, talented athletes, or CEO’s of large companies.
The reality is that the average millionaire looks nothing like we tend to imagine. In fact most wealthy people look just like you and me (and probably live in your neighborhood too!).
The Proof is in the Research
Dr. Thomas Stanley was a researcher who studied wealthy people and their habits. In his extensive research, Dr. Stanley discovered some surprising habits of the wealthy that on the surface seem counter intuitive to most of us. But once you understand the habits of wealthy people, you’ll totally get why they’re rich and most of the rest of us aren’t.
Most of us confuse earning a high income with being rich. However, in his studies, Dr. Stanley shows that there are tons of high income families that live paycheck to paycheck just like average earners.
They don’t practice the wealthy habits you’ll find below. In fact, they’re on the financial edge, only one or two paychecks away from bankruptcy.
They speak the language of money. Wealthy people are more financially literate than the poor. They're better educated about personal finance. Because they know what they're talking about, they're better able to advocate for themselves. They're able to make better decisions.
They understand that money is a long game. Or, put another way, wealthy people recognize that there's no reliable way to get rich quickly but that almost anyone can get rich slowly. The keys are persistence and patience. Do the right things for a long time and you will achieve your financial goals
They outsource, outsource, outsource. Wealthy people are aware of where their skills and talents lie, and they play to those strengths. They know when it's better to delegate a task to somebody who's better at it. Or they know when to outsource because their time is better spent elsewhere.
Rich People Don’t Always Earn a High Income
The interesting thing though, is that you don’t have to be a high-income earner to become wealthy. Even if you have an average income, when you practice the good financial habits below, you will eventually become wealthy too! It’s not about the income; it’s all about practicing wealthy habits over the long term.
So, without further ado, here are the habits of wealthy people that will make you rich too!
Wealthy People Value Financial Security over Status
Wealthy people would rather have money in the bank than expensive cars and brand name consumer goods. They would rather live in an average house in an average neighborhood instead of a high status neighborhood where they will feel pressure to keep up with the Joneses.
Wealthy people don’t care so much about what other people think. They’d much rather have financial freedom and security over fancy consumer goods and social status.
They Don’t Increase Lifestyle
People who build wealth also know that when they get a raise, they don’t increase their lifestyle to match it. Unlike Joe Average, they know a raise is not an excuse to get a bigger house, a car payment, or more fancy stuff. Wealth builders put their raises into savings and investments so their money can make more money.
Wealthy People Invest Their Money
People who are not building wealth tell themselves they will start investing:
- When they get their next raise
- Next year
- When they get out of debt
- Once they get the house paid off
- And a million other excuses
- Wealthy people don’t make excuses when it comes to investing. They develop the financial discipline to consistently put money into investments even during lean times.
They educate themselves about investing and how to put their money to work earning interest and dividends instead of stuffing it in a savings account or under the mattress.
Willing to Take Financial Risks
Another habit of wealthy people is that they are willing to take financial risks, as long as the risk is worth the reward. They don’t gamble on stocks or other investments with long odds.
Most people who don’t build wealth tend to be too conservative if they invest at all. These people invest in things such as savings accounts, treasury bills, government bond, and other investments that have very low risk of losing their money, but have terrible returns.
However, wealth builders consider riskier investments if they believe they will get a good return on their money without the potential of losing the entire investment. Some of their favorite investments are individual stocks, businesses, and income generating real estate.
Wealthy People Spend Less Than They Earn
I believe spending less than you earn is one of the most important habits of wealthy people there is. There is no way you can build wealth if you consistently consume every naira you make.
People with wealthy habits understand that living a reasonable, frugal lifestyle is key. Living on less than you make allows you to have money to set aside for wealth building activities.
They Teach Their Kids Well
Wealth builders also teach their kids good wealth habits. They teach them how to handle money, invest, and start money making businesses so they too can become financially independent someday.
Just as important, their kids don’t come back home to roost or depend on parents to prop up their lifestyle. Once the kids leave home they’re expected to go out and earn their own way without depending on mom and dad’s constant financial help.
Do You Have the Habits of Wealthy People?
Developing wealthy habits takes time, if you don’t really have, don’t fret! Just continue seeking out ways to improve your habits. Eventually you’ll develop wealthy habits that you can be proud of. It is never too late to start!