Things that wealthy individual have in common might surprise you.
Some of the things listed about wealth might surprise you. That is unless you are already wealthy, then you probably already know all of this.
1. If your passive income exceeds your living expenses, you are wealthy
One of the things that separates the wealthy person from the average person is passive income. When you don’t have to constantly fight to earn a paycheck just to pay bills, you are wealthy. This means that learning to reduce expenses can have a huge impact. Here is an example:
Lifestyle costs $150,000 to $160,000 a year
Investments Needed $3.2 million
Lifestyle costs $50,000 to $60,000 a year
Investments Needed $1.2 million
The key to actually being wealth is to have a lower standard of living than your passive income generates.
2. People who are self made typically live modest lifestyles.
Most people are surprised to learn that self-made millionaires, for the most part, live lives of that are modest in lifestyle. Their cars aren’t the fanciest, they don’t have the largest homes in the neighborhood and most of them don’t wear lots of jewelry.
80% of self-made millionaires surveyed said:
They live in a modest home
Purchase good used cars
Eat at home for most meals
Bought inexpensive clothes
Avoided spontaneous purchases
Wealthy people think about how their purchases will move the forward.
3. Financially successful people aren’t afraid to say no.
Millionaires protect their time and are selective regarding the tasks they take on as well as the opportunities they accept. Those who are self-made are comfortable saying no to anything that doesn’t move them forward towards what they want to accomplish.
4. The easiest way to wealth is saving and investing.
This is something that, while available to most people, few take advantage of. Almost 50% of the self-made millionaires used the “the saver-investor path” to become wealthy. This means that these people didn’t inherit wealth, have careers with high income, get a degree from an elite university or have some unique skill. These people simply saved consistently and were patient.
When you meet these people you would never know that they are rich.
5. Putting time to think in your schedule is something that rich people do.
People who are self-made millionaires are committed to thinking at least 15 minutes per day.
Some of the things they ponder are:
“What can I do to make generate more money?”
“Does my job or career make me happy?”
“Am I taking care of myself by exercising enough?”
“What causes or charities can I get involved in?”
6. Rich people spend time around people who are encouraging, optimistic, and constructive.
Wealthy people know that who we spend time with has an impact on our mindset. Self-made successful people look to be around people who possess the qualities they would like to see in themselves. Qualities like:
4. Emotional stability
Providing and accepting constructive criticism and helping one another focus is something else that successful people do.
Self-made people know that we become like those who we associate with, for better or worse.
7. Only one percent of the self-made millionaires did so before age 40.
Patience is something that financially successful people display. They know that habits take practice and good habits might not come overnight.
Successful people know that over time the little things will create momentum.
8. Most millionaires inherited or learned crucial habits from their families or parents.
Self made millionaires seem to learn their most important and fundamental money habits from their parents or other family members. Some examples:
- Take responsibility for their actions
- Respect the law and other people’s property
- Work hard for what they want
- Improve themselves daily
- Acquiring wealth is a good thing, not evil or greedy.