During the year 2013, there were 31,680,000 millionaires in the world and 1,426 billionaires. New York City alone is home to 389,000 millionaires. How did these people become millionaires in the first place? While many people have the misconception that millionaires just “got lucky,” that’s actually very far from the truth. The fact is that many millionaires are self-made and they get there by implementing some very important habits in their lives. Being rich is more like a state of mind than a status. Now, I cannot promise you that by following these habits that you will become a millionaire yourself. There are many other factors that determine how you rise to the top. However, this chapter will take a look at 25 of the most important habits you can form to make the most out your personal money management skills—and who knows…maybe you’ll become a millionaire one day, too!
Note: In this next section, rich/wealthy people are those who make an average of over $100,000 a year and poor people are those who make $35,000 or less a year.
Value Good Habits. Over 50% of rich people believe that their daily habits are what attribute the most to their financial security. Try to practice only the best habits that will drive you far in life!
Watch What You Eat. Rich people are more likely to eat less junk food a day verses the poor. If you would like to rethink your diet in an attempt to better manage your money, you can find all of the information you need about health and nutrition plus more in some of my other health related books.
Watch How Often You Gamble. Gambling is a fun way to try and double your money with no work. However, what many people forget is that the odds of winning are often stacked against you. Interestingly, wealthy people are far less likely to gamble than poor people. When I see all these fabulous casinos around the world, it seems pretty obvious to me who the winners truly are.
Set Goals. Did you know that 80% of wealthy people spend their time focusing on one goal at a time? On the other hand, only 12% of poor people are focused on setting goals and achieving them one at a time. Goal-setting is a great way to move yourself from point A to point B in the quickest time possible.
Listen to Audio Programs. More than half of successful rich people listen to audio programs instead of their car radio when driving. Listening to an audio tape while you drive is a great way to squeeze in some extra knowledge effectively. If you don’t have enough time to read books, you can consider doing this.
Read. People who spend 30 minutes or more reading non-fiction to further their knowledge and education are 80% more likely to be wealthy.
Practice Cardio. What does your exercise regime look like? Over half of successful wealthy people practice cardio during the week. Less than 30% of poor people find the time to schedule it in.
Organize Yourself. Do you keep a daily to-do list? If you do, then you have the potential to end up among the 81% of people who become wealthy. If you don’t, your chances of falling among the 19% of poor people can increase. To-do lists are a powerful yet simple way to organize your life, prioritize your goals, and stay focused on where you’re going. My favorite strategy is to cut up computer paper into a bunch of squares. I will then write down all the things that I want to get accomplished. I then put the most important things first and focus all my attention on it until it has been accomplished. I then throw the piece of paper away and move onto the next thing. Also, if priorities change, then it is easy enough to switch the papers around.
Remember Birthdays. Research has found that 80% of people who are wealthy call their friends and family to wish them a Happy Birthday verses only 11% of poor people.
Stay Humble and Modest. Another interesting habit that can determine your level of wealth is whether or not you speak your mind. While only 6% of rich people admit to freely speaking their mind, 69% of poor people do. Granted that you should always stand up for yourself, this statistic focuses more on jumping to conclusions and saying things without first thinking them through.
Network, Network, Network. Networking is a powerful way to climb up the ladder in your career. Research shows that 79% of rich people spend at least five hours a week networking while only 16% of poor people do the same.
Limit Your TV Time. Watching TV is a fun way to pass the time but it is important to monitor and limit how much time you’re actually spending on it. Research shows that wealthy people are more likely to only watch one hour of television per day and only 6% have admitted to watching reality shows. On the contrary, approximately 75% of poor people watch more than one hour of TV a day and 78% watch reality shows.
Wake Up Early. Waking up early can help you become so much more productive. It allows you time to work out, eat breakfast, do affirmations and other important things before you actually have to get to work. Rich people tend to wake up much earlier than poor people.
Continuously Improve Yourself. When it comes to self-improvement, you can never work on yourself enough. Research shows that almost 100% of wealthy people believe in continuous self-improvement. It’s a great way to live your life and it can really have an impact on your earning potential. You should always be looking for ways to improve yourself and your life.
Go Above and Beyond. 81% of rich people would agree that their wealth is a result of going above and beyond the requirements of their job. On the other side, only 17% of poor people would agree with this point. Additionally, 86% of rich people work an average of 50 hours a week and are happy with their work situation.
Don’t Forget to Floss. Another interesting habit of rich people is that they floss their teeth regularly. Research shows that 62% of rich people versus 16% of poor people floss their teeth every day.
Have Faith in the American Dream. Have you ever heard people say, “The American Dream is dead?” I know I’ve heard it. However, research shows that 87% of wealthy people believe that the American Dream still exists. Never give up on your dreams and keep pursuing them until you’re there! Some of the most famous people throughout all of history have had to overcome tremendous obstacles and pick themselves up time and time again before they finally reached their great success.
Value Your Relationships. Valuing your relationships, both on a personal and professional level, can have a great impact on your financial habits. Successful wealthy people understand the power of making their clients feel special by calling them out of the blue just to say hello rather than trying to sell them something.
Meet New People. Making an effort to meet new people can be very powerful. 68% of rich people believe in this while only 11% of poor people do.
Save. Nearly 100% of rich people believe in the power of saving money in addition to earning it. Only 52% of poor people believe in this. Saving money is hugely important, especially if you ever need money to fall back on in the case of an emergency. You should try and save ten percent of your income and put that into a savings account.
Take Control of Your Life. Are you the type of person who believes that there is another force that is driving your life? While only 10% of wealthy people believe in “fate,” a whopping 90% of poor people do! While believing in fate may be an important part of your spirituality, it is important to remember that only you can determine how your life will turn out.
Be Creative. 75% of wealthy people believe that creativity is key to becoming financially successful. Only 11% of poor people share this belief. While intelligence is an important factor in what determines your earnings, many companies and businesses rely on creative individuals to help them drive their organizations further. That can only mean that creative people have the potential to earn more money.
Take Risks. Taking risks can be scary but they can also determine how much money you can make. 63% of rich people agree that taking risks can make you much wealthier. Taking calculated risks is one of the key factors that has attributed to the creation of many millionaires and wealthy people throughout the world.
Value Time over Money. Time differs from money in the sense that you can’t get it back. You can always make money but you can never get a second of your time back once it’s been spent. Rich people understand this principle and often manage it by working for themselves and leveraging others to help them. When you are an hourly or salary employee, time often puts a restraint on your earning potential. The only way around this is to learn how to better manage your time on the job to get more done or to consider working for yourself one day.
Never Settle For Less. This point doesn’t have a statistic but it speaks for itself. People who earn more money never settle for less. They work with the mindset that there is something out there that is better for them. To financially successful people, there is no ceiling to their earning potential.