If most people were honest with themselves, they’d admit they would prefer if they were rich. There’s no shame in that; being financially successful means not succumbing to the daily stress millions of men and women face. What are the secrets of the most financially successful people? As it turns out, there are no secrets; it’s all about habits. Let’s dive in.
1. They Invest Smartly
Financially successful people invest smartly. They don’t dive into “get rich quick schemes,” they don’t throw their money around, and they don’t put their life savings into starting a bar. They’re dedicated to discipline and never make an off-the-cuff investment that may jeopardize their bank account. You’ll never hear genuinely successful people admitting they stumbled into their largesse!
2. They Are Goal-Oriented
People don’t fall into wealth by happenstance. Like other things in life, success comes when you set (often lofty) goals and do the work required to make your dreams a reality. Whether it’s setting a deadline for buying a home or giving themselves until the end of the year to land the salary of their dreams, highly financially successful people are goal-oriented, and they never lose sight of the big picture.
3. They Avoid Impulse Shopping
Impulse shopping is the bane of the average consumer’s existence. It’s a habit that successful people don’t succumb to! Every purchase adds up. It doesn’t feel like your $6 Starbucks drink every morning adds up, but trust me, it does! Unless you are filthy rich beyond your wildest dreams, most experts agree that deleting impulse-buy-friendly apps like Amazon from your smartphone and cutting back on discretionary spending.
4. They Educate Themselves
People who are good with money never stop educating themselves. Let me use you, for example. When was the last time you learned something new? When did you last learn a new skill? When did you add anything of value to your knowledge base? These are the things that separate the haves from the have-nots. Never stop learning.
5. They Are Responsible With Credit Cards
Ideally, you should use credit cards regularly and pay them off in full at the end of each statement period. Being scared of credit cards isn’t a sign of being financially savvy; it shows that you don’t have the financial acumen to be successful! At the very least, proper credit card usage has fantastic tangible benefits that can make you even more affluent, like rewards that can be exchanged for free hotel stays and flights.
6. They Have Passive Income
Financially successful people work hard for their money, but the very best don’t work at all for their money. Passive income is a revenue stream that keeps money flowing in without lifting a finger. Most people will tell you that any investment that pays dividends is perfect for passive income, whether it’s owning stocks or real estate. Being a landlord is one of the best ways to maintain a passive income!
7. They Are Ahead of Trends
Say what you want about cryptocurrency, but we’re all jealous of the lucky few who got into Bitcoin on the ground floor in the late 2010s. Some may call it blind luck, but many early adopters credit themselves for their success in cryptocurrency. Ultimately, genuinely successful people are always ahead of trends and can spot a money-making opportunity a mile away.
8. They Mitigate Risk
While exceptions unquestionably come to mind (hi, Elon Musk!), most wealthy people are excellent at mitigating risk. These people treat their bank accounts like family members and protect them at all costs. It all comes down to discipline; every financial move they make is calculated and savvy, and they would never be caught putting up any amount of money if the risk was too high. Generally, financially successful people are the opposite of gamblers.
9. They Have Emergency Funds
An emergency fund should be a staple of every person’s financial picture. Unfortunately, this isn’t the case. An emergency fund is the last thing on the minds of millions of men and women, and they’re leaving themselves open to severe financial hardship if an emergency was to happen. Think about it: Without an emergency fund, you could go into debt instantly if the worst-case scenario occurs!
10. They Are Creatures of Habit
Regardless of financial situation, successful people are all creatures of habit. From going to bed and waking up at the same time every day to following the same routine during waking hours (and everything in between), habits, in general, are a hallmark of success! Let’s put it this way: Unless you’re Taylor Swift-rich, waking up at noon every day most likely tells someone all they need to know about your current financial situation.
11. They Adapt Their Budgets
Having the foresight to adapt to changing situations is yet another fantastic trait financially successful people have, especially when considering their budgets. Developing a budget is necessary in all walks of life, but pivoting and adapting their budgets on the fly requires courage! As their income levels change, they will sensibly adjust their budgets and not increase their spending just because more money is suddenly coming in (something we’re all guilty of).
12. They Don’t Overthink Things
Calm, cool, and collected: Three words that describe nearly every financially successful person. We are all guilty of overthinking things sometimes, which often contributes to our lack of financial acumen. I must admit: This trait is vital for stock market investors; I can’t believe the discipline it takes not to overthink a “down” day in the market when you can lose tens of thousands of dollars in a heartbeat!
13. They Avoid Debt
Financially savvy people are much too smart to get themselves into debt. From student loans to credit card debt to signing predatory automobile loans, the wealthiest men and women in the world avoid debt at all costs. That’s in stark contrast to you and me, however. In my eyes, getting into serious debt was a rite of passage and I only just recently escaped that quagmire!
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
