It’s a fact. Just like your waistline is a result of your diet and exercise habits, or a clean house a result of picking up after yourself, your life is a result of your habits.
And in the same way, your financial situation is a result of your money habits. If your money habits are not conducive to building wealth, your bank account will probably be a slim one.
Here are a few of the common habits that wealthy people follow religiously:
- Focus on acquiring assets
Spend as much as you can on real assets. It’s true that your accountant might consider your car to be an asset, but a wealthy person would not. To someone that has wealth, an asset is something that creates income or additional value (like businesses, stock, precious metals, etc). Your car does not meet this requirement. Focus on buying assets instead of buying ‘stuff’.
- Focus on self-improvement
Rather than just watching TV at night, wealthy people are more likely to read a book about self-development or spend their free time learning how to be more valuable to their clients. If you want to be wealthy someday, spend time becoming a better version of yourself.
- Focus on creating value
The average person wonders how he can take a bite out of someone or something else – extracting value every time they can. Wealthy people create value and then charge for it. The more value you create, the more you can expect to get in return for that value.
- Never trade your time for moneyMost people insist on trading their time in exchange for payment. The biggest challenge with the mindset of trading time for dollars is that your time is limited. Focus on activities that have no relation between the time spent on them and the amount of money that you can earn from doing them.
Warren Buffet starting his investing career by only taking a share of the investment profits above a certain margin. If an investment lost money or failed to make a significant amount of money, he got nothing. It seems he did okay in the end. A great example are the few smart people who are learning to trade in the binary options markets.
- Never give up
Do you try something once or twice and decide it will never work? The wealthy person keeps going. They’ll likely keep altering their approach until it works, but most importantly, they keep on going. If you give up easily, you vastly lower your chance of success.
- Embrace calculated risks.
There’s a huge difference between playing to win and playing not to lose. Most folks do everything they can to avoid all risk. However, there’s a lot of money in risk. That doesn’t mean that being reckless is the answer, but managing risk is a regular part of the wealthy person’s life – if you don’t play the game, you’ll never win the game.
- Focus on following a proven path to create your own wealth
Wealth is a matter of cause and effect. Average people are waiting for lightning to strike – they believe that wealth is something that happens to the lucky few. The wealthy believe in making their own luck and they do it by working smarter (not harder) and by focusing their time and energy in proven paths to wealth.
The more of these habits you embrace, the faster you’ll become a wealthier person. However, if you’d like to speed up this process as much as possible, then take a few minutes to watch this video by Daniel Stocker (a brilliant former Wall Street analyst). In the video you’ll learn exactly how online trading works and how anyone – even with no previous experience – can make money trading in the world’s financial markets in a matter of hours.