If you want to build wealth, it’s important to develop habits that support your financial goals. The rich didn’t become wealthy overnight, but rather, they made conscious choices and took consistent action over time. Here are seven habits of the rich that you can adopt to build your own wealth:
- Live within your means.
You will lose whatever you fail to manage.
Wealthy people know the value of money, and they avoid overspending by paying themselves first. They save at least 20% of their net income and live on the remaining 80%. You can follow this habit by budgeting and keeping track of your expenses. Spend no more than 25% on housing, 15% on food, 10% on entertainment, 5% on auto loans, and 5% on vacations. Save six months of living expenses in an emergency fund and contribute as much as you can afford to a retirement plan.
- Don’t gamble.
Create your own luck.
Wealthy people don’t rely on luck to build their wealth. They create their own luck through hard work, smart investments, and calculated risks. Gambling is a sucker’s bet, and almost no wealthy people play the lottery. If you still want to gamble, use money from your entertainment budget.
- Read every day.
You must never stop learning.
Successful people know the value of knowledge, and they read for at least 30 minutes every day. They read educational, career-related, personal development, and biographical books, as well as current events and history. Reading improves your skills, expands your horizons, and exposes you to new opportunities. Make it a habit to read every day, whether it’s in print, online, or through audiobooks.
- Spend less time watching TV and surfing the internet.
We all get the same 24 hours.
Wealthy people don’t waste their time on mindless entertainment. They watch less than an hour of TV a day and spend less than an hour a day on the internet, unless it’s for work-related purposes. Instead, they use their free time for personal development, networking, volunteering, working on side businesses, or pursuing their goals. Limit your TV and internet time, and invest your time in activities that will lead to personal and professional growth.
- Control your emotions.
Know how to control your emotions.
Wealthy people understand the power of emotions, and they know how to control them. They filter their emotions and don’t let them control their actions. They wait until they’re calm and objective before expressing their thoughts or opinions. Fear is the most common negative emotion that holds people back from success. Conquer your fears by taking small steps and building your confidence.
- Network and volunteer regularly.
Invest time into networking and volunteering.
Wealthy people know the value of relationships, and they invest time in networking and volunteering. They spend at least five hours a month building their social capital and giving back to their communities. You can do this by attending networking events, joining professional organizations, volunteering for non-profit groups, or serving on boards and committees. You’ll meet successful people who can help you achieve your goals, and you’ll feel good about making a positive impact in the world.
- Go above and beyond in work and business.
Don’t settle for mediocrity.
Successful people don’t settle for mediocrity. They go above and beyond in their work and business, and they take on more responsibility and challenges. They don’t have a “not in my job description” mentality, but rather, they look for opportunities to learn, grow, and excel. You can adopt this habit by setting high standards for yourself, taking on new projects and assignments, and delivering exceptional results.
Building wealth is not just about making money, but also about developing habits that support your financial goals. Adopt these seven habits of the rich, and you’ll be on your way to building wealth and living a fulfilling life.