Wealthy people focus their energies on growing their assets! They don’t rest on their laurels, expecting inheritance to come to them. Many of them didn’t even come from wealthy families.
They worked hard in school and built successful careers. They invested wisely in the stock market, real estate and any other market that was available to them in order to grow their wealth. Not many of these people are flashy or showy when it comes to how they live. Even if all the clothes in their closet are 10 years out of style, they won’t notice until someone else points it out.
Focus On Self-Improvement
Often the life of a rich person includes using their spare time to improve their knowledge on many different things.https://ae9c410612f3c0b1a1fedf4395b91c8f.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
If you’re wondering, what do rich people do for fun? Then this is one of the things they do.
They read books from many different genres, including business, finance, economics and self improvement.
They keep up-to-date on world affairs through more than just the nightly TV news.
When you have a wealthy mindset, you understand that learning is a lifelong endeavor. Not something you leave behind when you finish college and start working.
What do rich people do for fun? They treat self-improvement as a fun hobby, something they want to do and as a treat to themselves.
The more knowledge you have, the more you understand the world around you, the more you can use this to help you increase your wealth. Knowing this is how the rich get richer.https://ae9c410612f3c0b1a1fedf4395b91c8f.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Richer in money and richer in knowledge and understanding.
ACTION – These are my top 4 recommended personal finance books, ones that are easy to read, to understand and to relate to your own circumstances. Grab yourself a copy to read, from Amazon or the library.
They take on a side hustle.
Many millionaires favor moonlighting, or taking on a side hustle, according to Stanley Fallaw, who said it’s a good way to explore options while remaining employed full time.
“Those who are able to create multiple opportunities to generate revenue, who can translate hobbies into income-producing activities, will be successful at becoming millionaires next door in the future,” she added.
John also found that millionaires develop multiple streams of income, enabling them to grow their net worth exponentially, he said.
They invest in real estate.
One side hustle they’re prone to taking on once they’ve built wealth is investing in real estate, according to John.
“Investing in real estate seems like a natural result once the basics are covered and excess cash is generated,” he wrote.
According to Dana Bull, a real-estate investor, the financial advantages of investing in real estate are plentiful: positive cash flow, appreciation in terms of housing values, leverage, and tax advantages.
They invest in low-cost index funds.
According to John, millionaires also tend to use the same simple investing strategy: investing in low-cost index funds.
“The high returns and low costs of stock index funds (I personally prefer Vanguard as do many millionaires) are the foundation that many a millionaire’s wealth is built upon,” he wrote.
Experts agree that investing in index funds is a winning strategy when playing the stock market for two reasons: They’re broadly diversified, eliminating the risk of picking individual stocks, and they’re low-cost. Even Warren Buffett champions the strategy.
They spend more time studying and planning for investments.
Millionaires’ preferred investing strategies might be fueled by their research. Millionaire investors spend more time — an average of 10.5 hours a month — planning for investments, according to Stanley Fallaw.
That’s nearly two hours more than under-accumulators of wealth, defined as those with a net worth less than one-half of their expected net worth based on age and earnings, who spend 8.7 hours a month doing so.
“Their literacy in financial matters means that they are more tolerant of taking investment-related risks,” Stanley Fallaw wrote. “Future outlook and financial knowledge typically relate to taking greater financial risk, so the time they spend in managing and researching investments helps in decision-making.”
They put more energy toward personal-growth activities.
Millionaires also spend more time focusing on personal growth. They spend roughly 5 1/2 hours a week reading for pleasure and nearly six hours a week exercising, while the average American spends two hours and 2 1/2 hours on those activities, according to Stanley Fallaw’s research.
“Successful individuals are keenly aware of how they spend their resources, including their emotional and cognitive resources,” Stanley Fallaw wrote.
Similarly, Thomas C. Corley, the author of “Change Your Habits, Change Your Life,” spent five years researching the daily habits of 177 self-made millionaires and found they devoted at least 30 minutes every day each to exercising and reading. Millionaires tend to read three types of books, he said: biographies of successful people, self-help or personal development, and history.
They sleep less and work more.
But millionaires make a few sacrifices to make the most of their time. They sleep nearly eight hours less a week and work six hours more a week than the average American, according to Stanley Fallaw.
That might be because many wake up at least three hours before their workday actually begins — a strategy to deal with inevitable daily disruptions, according to Corley’s findings.
“Getting up at five in the morning to tackle the top three things you want to accomplish in your day allows you to regain control of your life,” Corley wrote. “It gives you a sense of confidence that you, indeed, direct your life.”
They think more.
Corley also found that self-made millionaires are thinkers. The rich tend to think in isolation, in the mornings, and for at least 15 minutes every day, he said.
“Thinking is key to their success,” he wrote. “They spent time every day brainstorming with themselves about numerous things.”
He said they asked questions such as “What can I do to make more money?” “Does my job make me happy?” “Am I exercising enough?” and “What other charities can I get involved in?”
They don’t follow the crowd.
According to Corley, millionaires don’t follow the crowd.
“We so desire to blend in, to acclimate to society, to be a part of the herd, that we will do almost anything to avoid standing out in a crowd,” Corley wrote. Failure to separate yourself from the herd, he said, is why most people never achieve success.
Instead, successful people create their own new herd, he said.
“You want to separate yourself from the herd, create your own herd, and then get others to join it.”
They ask for feedback.
Millionaires seek feedback to help improve themselves, according to Corley.
“Fear of criticism is the reason we do not seek feedback from others,” he wrote. “But feedback is essential to learning what is working and what isn’t working. Feedback helps you understand if you are on the right track. Feedback criticism, good or bad, is a crucial element for learning and growth.”
It allows millionaires to change course and experiment with a new career or business, Corley said. “Feedback provides you with the information you will need in order to succeed in any venture.”
Don’t Watch TV
Having read the above self improvement habit, you might be thinking – but I don’t have time for all that.
Yes you do.https://ae9c410612f3c0b1a1fedf4395b91c8f.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Time to improve yourself can easily be found through not watching TV.
A TV is what poor people do and rich people dont. Poor people not only watch TV, they often have an expensive large screen one too. I watch TV so you know which category I am in.
A TV is consider an essential in many households so you would think a very large expensive would be on the list of luxurious items for the rich. Bigger is after all more expensive so it’s the stuff rich people buy, right?
Wrong.
The life of a rich person often does not include owning a TV, nor do they watch via live streaming or anything else.
How rich people live is that they just do not watch TV.
In their mind their time is too valuable to spend it watching TV.
They would rather spend their valuable time on things that benefit them and their family in the long run.https://ae9c410612f3c0b1a1fedf4395b91c8f.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
According to Wikipedia, the average American watches 4 hours of TV every day. And it’s almost the same in the UK according to The Independent.
That is 4 hours every day that you could spend developing your knowledge and applying it to your life.
ACTION – Start to value your time. Have a TV ban. If you watch it daily, start with 2 nights a week and fill your time with learning something useful for long term personal growth.
Choose Investments Over Cash
How rich people make money is they know the best form of money is money that is working for you to make more money. Rich people make money by investing it, not saving it.If you have been wondering what millionaires buy, then this is it. They buy investments and get money working for them. It’s why the rich get richer.
They might have a cash buffer, but not much. Just enough for their emergency fund.
What rich people do with their money is to invest it for the long term as this is how money makes money.
Conclusion
Can they be useThe personal value of becoming wealthy can be so great. Most people don’t have the appetite to invest the time, effort and dedication it takes to build a nest egg. When investing, remember not all investments are the same. Understand the differences between a 401k, a Roth IRA and a conventional IRA. You want to save for retirement? Prepare today by opening a Roth IRA or consolidating your IRAs into one easy-to-use IRA savings account from Fidelity.