Financially successful people do things a little differently than the rest of us. They typically have a more positive mindset, take personal responsibility for their wealth and business success. Additionally, they are willing to sacrifice short-term benefits for longer-term gains. They are lifelong learners and surround themselves with positive people who also believe in the benefits of education and a good work ethic.
They come from all walks of life and all income brackets, but they share a similar set of attributes that set them apart from the rest of us.
10 Things Financially Successful People Do Differently
1. They Don’t Waste Time Watching Television
Wealthy people watch very little television a day and almost no so-called “reality TV”. They spend their time wisely working on their business and not wasting it on the couch.
2. They Make Sacrifices
Wealthy people live frugally at first in order to invest their limited income and resources into something that will make them more money. Some wealthy people, like Warren Buffet, live this way their entire lives. They have modest-sized houses, drive used cars and don’t waste money on flashy status symbols like boats or expensive sports cars.
3. They Aren’t Victims
People who see themselves as victims complain and blame their failures on others. Successful people take their misfortunes or bad decisions and analyze what happened and how they could change the outcome in the future. They learn from their mistakes rather than complain about them.
4. They Save and Limit Debt
Successful people pay off debts quickly to save money on the interest which accrues over time. So, if you pay off the principal of the loan faster, then interest on that loan is less over time. They also make saving money a priority. Even if it’s only $20 a month, saving money and developing it into a habit will pay off later when an emergency strikes, This way, you can cover it with savings rather than paying off an emergency loan which will cost significantly more in the long run. The best way to save effectively is to automate it. Set up a recurring transfer from your checking into your savings. Before you know it, you will have a lot of change to invest in. Please resist the temptation to spend it on a new car or television or expensive clothing.
5. They Don’t Blame Others For Their Situation
Successful people take responsibility for their actions and their fortunes. Rather than waste time and energy blaming someone else who might only be marginally responsible, they accept that their fate is theirs. If they want to succeed, they must do something about it themselves.
6. Long-Term Planning
Successful people make and stick to long-term financial planning rather than spending their money as fast as they make it.
7. They Make Things or Provide Services of Value
They aren’t just consumers of other people’s ideas and products. Instead, they produce things. They do things, things that other people are willing to pay for.
8. They Believe Education is Important
Wealthy and successful people believe in education and lifelong learning. They read books of educational value or that are work-related. When they commute, they listen to audiobooks or news programs.
9. They Do More Than the Minimum
Successful people do more than show up to work, do their job, and go home. They get up early and they stay later at work. They go above and beyond to achieve their goals.
10. They Are Passionate About What They Do
Financially successful people get a thrill from making something new, making a customer happy, or fulfilling a client’s order. They care more about the creative process they are involved in than the money they are making.
Financially successful people are disciplined savers who start saving early and often. They live frugally most of their lives. They love their work and do as much as they can, the best way they can. Thus, they limit their debts, take responsibility for their wealth, and plan long-term. They don’t waste time or money. Furthermore, they take every chance to better themselves and their abilities.
11. They are savvy at a young age
Financially successful people think about their financial future when they’re young. They may open a savings account when they start their first job as a teenager or start investing in a retirement plan while in college. These folks know that every bit they save makes a difference in the future.
12. They pay off their debts
Financially savvy people refuse to drown in debt. They make it a priority to pay off their debts. Of course, certain types of debt are inevitable. Financially successful people are strategic about what kind of debt they incur or don’t incur.
13. They make savings a priority
Saving more money than you spend will lead to a financially secure future. Most financially successful people put some of their money aside for savings. Having a certain percentage of your paycheck deposited directly into your savings account is easiest. This way, you’re not as likely to spend the money.
14. They keep monthly expenses to a minimum
Besides being good budgeters, financially successful people are careful to keep their monthly expenses to a minimum. They avoid spending unnecessarily on things like
- Unneeded insurance
- Pricey gym memberships
- Expensive gifts
- Expensive cell phone plans
- Delivery meals or takeouts
15. They stay on budget
Financially successful people believe in budgets. When they create a monthly budget, they work hard to stick to it. They understand not only setting limits but spending wisely when needed. This is because they’re disciplined, yet flexible in their view of spending.
16. They are financial learners
Financially successful people don’t assume they know everything about money, investment, or finances. They read books, listen to podcasts, and ask other people questions. They believe in education and encourage others to learn as much as they can to get the best financial benefits.
17. They don’t compare themselves
Comparing yourself to others is rarely helpful. If you compare your financial investments, savings, or budget to someone else, you’re apt to make a poor decision. Stay focused on your goals. This is best for you to be financially successful.
18. They are slow to make financial decisions
Financially savvy people don’t make quick financial decisions they might later regret. They take the time to research and consider the financial risks versus benefits before spending or investing. They believe in taking financial risks but take calculated risks rather than making a knee-jerk decision.
19. They have lived frugally
Some of the richest people in the world lived frugally for many years. Those lean years allowed them to stash away money into savings so today, they can buy a penthouse or a fancy car.
20. They’ve learned from their financial mistakes
Being financially successful doesn’t mean they never made a financial mistake. It’s something that everyone does once in a while. The big difference is that financially successful people learn from their financial mistakes and take note the next time to be more careful.