15 Secrets of the Rich: How to Apply Them to Your Life.
You have to check out these 15 surprising secrets that wealthy, successful people know. #5 might surprise you.
You hit the jackpot! You win millions and millions and millions. You’re ecstatic. You never have to worry about money again. You can live the life you want. Take a moment and imagine the joy.
But here’s the bad news. If you’re like 70% of lottery winners, you’re going to end up broke within a few years. Yep, 70%. It’s just like those athletes who make millions and end up broke after retiring. Because money isn’t the solution to poverty. I know that sounds weird, but it’s true.
It’s mindset that’s keeping people down. The rich really do think different from everyone else. I’m talking about everyday rich people. The 10.4 million people in the United States who are currently worth more than a million. You can learn the secrets of the rich. Embrace their habits. And apply them to your life.
You might also be interested in a corner of the website dedicated to everything money…it’s called Frugal Finance <<<just click there to check it out.
#1: Spend what is left after saving
Warren Buffet’s entire philosophy of money can be summed up with: “Don’t save what is left after spending; spend what is left after saving.” And with today’s technology, it’s something you can embrace.
Today- not tomorrow, not next week- set up an automatic withdrawal from your paycheck to your retirement fund. Have it taken out before you even see it. Right now, we dedicate 12% of our income (we would do more but husband is military and we know he’s getting retirement pay on top of our savings). It comes out of our paycheck before we even see it. The habit of spending AFTER saving is fundamental to building wealth.
You don’t have to start with 12%. Start with 1%. Go a couple of months on the slight reduced income. Up it to 2%. Keep it up. Trust me, you can do this!
#2: Invest early
Invest early. Compounding is practically magic. The earlier you start, the easier it is to build wealth. But no matter how old you are, starting today is better than tomorrow. And much better than next year. Passive investments are the secret to long-term wealth. No matter how hard you work, there is a limit on how much you can make via active work (paychecks). But as you invest more and more in passive income streams, it compounds and grows.
#3: Save your raises
Save your raises. Instead of using all that extra money for things that you’re currently living without right now, send that straight to your investments. After all, you’re living on a certain amount of money right now and not starving. You don’t NEED that raise. So why not save it and just pretend you’re still making the same amount?
#4: Avoid debt
Avoid debt. Money spent on interest is a complete waste. You should be loaning out money, MAKING more. Not spending extra to use money that you don’t have.
#5: Read non-fiction
Read nonfiction. Yes, seriously. This is one of the major secrets of the rich. Millionaires read nonfiction. Books on business, economics, and biographies of successful people throughout history. You don’t have to give up your fiction habit (I know I’m not!), but make an effort to incorporate nonfiction. If you don’t read at all, start. You don’t have to pay anything- embrace your local library. I pay for Scribd. It’s only $8.99 a month and I get unlimited reading and unlimited audiobooks.
Learn something new everyday. Or at least every week. Ideally something related to your career that can translate into increased earning potential in the future. This is more important than ever with the constantly growing technology.
Invest in yourself. Invest in education. Some books in your career field. Your health (medical care is expensive!).
#8: Find a way forward
Always look for a way forward in your job. I don’t care if you’re starting as a waitress. I was one- at Pizza Hut and Applebees. My first action was to work hard. My second was to move up the ladder- supervisors make more. The expo (Don’t ask. If you’re not in the food service industry, it wouldn’t make sense) made more. So I learned what I needed to become expo.
What do you need to do at your job to become a supervisor? Then assistant manager? Then manager?
Set goals regularly and strive to achieve them. Inaction and complacency are your enemy. Plan out your path to success. If you need help with goal-setting, get my Free Printable Planner. It has worksheets and examples to help you. It’s important to put your goals in writing.
#10: Find the successful
Surround yourself with intelligent, successful people. Yes, the occasional gossip session is nice. But- on average- surround yourself with people who are working, striving, and achieving.
#11: Get advice when needed
Ask those intelligent, successful people for advice when you need to. The way the world is, it’s impossible to be an expert in everything. So consult the experts when you’re dealing with an area you don’t know.
#12: Don't get comfortable
Break out of your comfort zone. Because when you live outside your “zone”, you get stronger. You try new things and form new habits. Every day, you’re either going to get better or worse. The choice is up to you.
#13: Embrace fear
Related to breaking out of your comfort zone is taking steps despite of fear. Fear is a natural human reaction. But you have to take steps in spite of it.
#14: You don't need new everything
Hang on to your stuff until you really, really need new. While the rich will spend money on good quality products (they last longer), they hang onto those items. Constantly needing a new car, new phone, new whatever is a recipe for long-term poverty. (In case you’re curious, I drive a Mercedes….that I’ve had since 2011. And it looks almost brand new because we take care of it. I love my mini-SUV and still don’t want to trade it.).
#15: Opportunities, not obstacles
Look for opportunities, not obstacles.
Instead of: “I can’t save another dime.”
Try: “How can I save an extra $50 this month? Or EARN an extra $100?”
Instead of: “I can’t possibility turn everything around”
Try: “How can I start with 1% savings, and then expand from there?”
There you have it. 15 secrets of the rich. Which one surprised you the most? Comment below to let me know! I was surprised by #5 (read nonfiction). Just because it doesn’t seem to have anything to do with saving or spending money.