“How to become rich” is one thing majority of us think about. Wouldn't you agree?
Why do rich keep getting richer?
What's their job?
How do they save?
Were they born lucky or did they just win a lottery?
Well, getting rich is not all because of luck or the family you are born into. It’s more about how financially disciplined you are and how you try to do things differently.
Economists suggest that the rich would only keep getting richer and this wealth inequality gap is going to increase with time.
Why do rich keep getting richer?
This may not seem fair, but things can change if you dedicate a good portion of your time to become and more importantly, stay rich.
How Can I Get Rich With No Money? – Learn to Create the Wealth You Deserve
Financial Discipline Can Make You Rich
You must have read a lot about financial freedom. In fact, realizing your worth and being able to enjoy your life without concern over cash could be the best thing that ever happened.
The sad fact is that most people become so overwhelmed by their idea of the quickest way to get rich that it prevents them from taking the necessary actions to achieve their goals. When you talk about getting rich, you’ve got to understand that creating wealth is more than simply crunching numbers or saving a certain amount of money.
You have to make sound financial decisions and invest in successful endeavors. Most importantly, you need to have the right mindset to get rich.
Do You Have the Right Mindset?
The key to experiencing financial freedom is having the right mindset.
That’s right. Experts suggest that almost 80% of success in any endeavor including ‘how to be rich’ strategy depends on your growth mindset. The remaining 20% is determined by your actions or mechanics. Remember, the last thing you need to do is stunt your growth and stop yourself from dreaming big.
Sadly, we all have a voice in our heads that tells us we can’t do something. “You just can’t dream about how to be rich!” That’s something impossible and you don’t have the skills to achieve it.
This kind of fixed mindset will only keep you stuck and you would never take the actions necessary to change your life and achieve financial freedom. If you want to be rich, you have to first change your mindset from ‘I can’t’ to ‘I will.’ Second, you have to believe that you can achieve financial success.
Perhaps the most important characteristic that differs rich people from the rest is their ability to turn failures into successes. Some of the most famous billionaires have also had some of the most epic failures. However, no matter how many times they stumbled, they had the courage to stand up back again.
5 Habits of the Rich that Helps Them Get Richer
1. They are willing to take risks
The wealthiest people work a little differently – they try a lot of new things (investments) knowing that there is a risk.
If you want to become rich, you should be prepared to take risks because you know that failure is just a small part of the long process that will help you build more wealth.
2. They look at the money spent on personal growth as an investment
You may think twice, thrice or even more before spending money on self-improvement, but this is where wealthy people differ.
Whether it is hiring a motivational coach, joining entrepreneur discussion groups, getting enrolled in a degree, or buying a book, the wealthy know that money invested in improving personal skills can produce a far greater return than any other stock or business venture.
Let’s say Person 1 has 20 million dollars and Person B works hard to make $100,000 in a year. Of course, Mr. A has enough of a financial cushion but he decides to invest in a Master’s degree in addition to buying company stocks, real estate and precious metals.
This degree will yield a higher rate of return over the years. Person B continues to work hard and makes a $100,000 year over year. However, his salary increments don’t keep pace with money made by person A.
3. They associate with the Rich
Your body is constantly adapting to changes in surroundings to keep your temperature at the comfortable spot (the biological process is called homeostasis and is important for maintaining life).
Similarly, financial homeostasis is a powerful way to create more wealth.
Simply put, you should start hanging out more with the people who are rich and try to adapt to their financial habits and strategies and use financial homeostasis to your advantage.
4. The rich have a dedicated morning routine
No, hitting the snooze button 15 times in a row isn’t part of this list. Successful people have a dedicated routine to increase their net work and accomplish more in a day than normal people achieve in a week. This morning ritual includes physical exercise, setting financial goals, healthy breakfast or whatever helps them start their day with a bang.
5. The rich have clearly defined financial goals and they review them periodically to track their success and make changes if necessary.
Remember that knowing ‘how to be rich’ and building some serious wealth is far more complex than simple goal setting.
7 Financial Discipline Action Steps that Will Help You Create more Wealth
1. Work in a career you love so that it becomes more financially rewarding. Remember, wasting your energy and time in a workplace you hate is a recipe for financial failure.
2. Let the power of compound interest work wonders for you over a long period of time. To maximize your financial returns further, make sure you start investing your money at a very young age.maximize your financial returns further, make sure you start investing your money at a very young age.
If you haven’t thought about investing until now, don’t let that be an excuse. Put your thinking cap on and let compound interest build your wealth like nothing else.
3. Spend your money wisely and never overextend yourself like most broke people always do.
4. Debt is a plague which must be avoided at all costs. What’s more unfortunate is that credit card debt can suck thousands of dollars in penalty, interest – this money could have strengthened your investment portfolio.
In addition to credit card debt, you should stay away from all kinds of consumer debts like personal loans and car payments.
5. Have a budget and stick to it. Having your earnings and spending written down can help you identify where your money goes and how it can be used more efficiently.
Needless to say, you should never spend more than what you eventually make.
6. Savings should be your priority and it is also an excellent way to develop financial freedom. If you have money left, put it into your savings account.
7. Gratitude is tied to building wealth. Start tracking how many people you can help with your money, even in a small way.
Finally.., Educate Yourself about Money!
The bottom line is that you should keep yourself educated about money. This includes investments that yield highest rate of returns, financial planning and ways to increase your income.