If you think about it, your life is largely the result of your habits. Your waistline is a result of your diet and exercise habits. If you have the habit of picking up after yourself, your house is probably neat and uncluttered.
Likewise, if your money habits aren’t conducive to building wealth, you might lack for money.
Let’s take a look at several habits of a self-made wealthy person:
1. A focus on assets. It’s true that your accountant might consider your car to be an asset, but a wealthy person would not. To someone that has wealth, an asset is something that creates income or additional value. Your car does not meet this requirement.
* Spend as much as you can on real assets. These are things like stocks, bonds, businesses, precious metals, and similar items. Focus on buying assets instead of buying ‘stuff’.
2. Self improvement. Rather than being content with just watching TV at night, wealthy people are more likely to read a book about self-development or spend their free time learning how to be more valuable to their clients.
* If you want to be wealthy, regularly spend time becoming a better version of yourself.
3. Creating value. The more value you create, the more you can expect to get in return for that value. Wealthy people create value and then charge for it.
* Those that aren’t wealthy are usually more focused on extracting value. The average person wonders how he can take a bite out of someone or something else.
4. Being paid for results, not for their time. Those of less than spectacular income insist on trading their time in exchange for payment. If you have a job working for someone else, this is most likely you.
* The biggest challenge with the mindset of trading time for dollars is that time is limited.
* If you have faith in your ability, you’d rather be paid based on results, which can put your income into the unlimited realm.
* Warren Buffet starting his investing career by only taking a share of the investment profits above a certain margin. If an investment lost money or failed to make a significant amount of money, he got nothing. It seems he did okay in the end.
5. Taking calculated risks. Most folks do everything they can to avoid all risk. However, there’s a lot of money in risk. That doesn’t mean that being reckless is the answer, but managing risk is a regular part of the wealthy person’s life.
* There’s a huge difference between playing to win and playing not to lose.
6. Making their own wealth. Wealth is a result, just like body weight or health is a result. It’s simply a matter of cause and effect.
* Average people are waiting for lightning to strike. They believe that wealth is something that happens to the lucky few. But the wealthy believe in making their own luck.
7. Never giving up. Do you try something two or three times and then decide it will never work? The wealthy person keeps going. They’ll likely keep altering their approach until it works, but most importantly, they keep on going. If you give up easily, you vastly lower your chance of success.
The good news is that anyone can become wealthy with the proper habits. Focus on creating and providing value to others. Start working on bringing these wealthy habits into your life and enjoy watching your income grow.