5 FINANCIAL HABITS OF THE RICH AND FAMOUS
Financial advice from America’s wealthiest people
By Ashley Chorpenning
Whether Americans fantasize about winning the lottery or discovering they’re an heir to an oil empire, they love stories of rags to riches. The appeal of these stories is how an ordinary person can achieve ultra-wealth. While there may not be a quick fix, you can apply the financial habits of the ultra-wealthy to your own life.
According to the advice of America’s wealthiest people, here are 5 things that the rich and famous do to grow their money that you can do, too.
Believe to achieve
From a difficult childhood to one of the richest self-made women in America, Oprah Winfrey has inspired people around the world. She’s a believer in mindset contributing to what we can achieve. Of course, merely believing won’t bring you millions of dollars. You need to develop a strategy and a plan for materializing your goals and aspirations. But, in order to achieve the lifestyle you desire, you must believe you can have it.
Set goals and establish an action plan to achieve them
Determine how much money you will need to fund your goals. Then, from there, you can break down the finances and include the incremental steps in your budget. Setting goals and developing plans to achieve them is the best way to organize your savings and investment priorities.
Want to pay for you children’s higher education expenses? Interested in purchasing a sail boat to venture around the world? To achieve these goals, you must create and implement a plan of action.
Always pay yourself first
Establishing automatic savings contributions ensures you meet your savings goals. If your automatic contributions stock away a percentage of your paycheck before it’s deposited into your account, it’s like it wasn’t even there. Therefore, you won’t have the temptation to spend your additional income after you pay your other expenses.
In order to achieve your biggest financial goals, you must pay yourself first. Many Americans receive their paycheck, pay taxes, pay bills, and then save what’s left over. This method makes saving excruciating and prolongs the progress toward accomplishing your goals.
Prioritize reading and your financial education
Rich and famous people view reading as an opportunity to learn instead of a way to fill their time. Take, for example, Warren Buffet. He says he occupies 80% of his time with reading alone. Buffet suggests that in order to be a successful investor you don’t need a high IQ or insider business information. All you need is a sound intellectual framework. You can achieve this by filling your brain with knowledge and information. Buffet recommends reading at least 500 pages per day.
Connect with others
Rich and famous people know how to spend their time networking and building relationships with individuals that can help them achieve their goals. Contrary to popular belief, networking is a great way to help you achieve your goals. It also helps others do the same. Essentially, you’re building a community of like-minded individuals who want to aid in the success of others.
The author of Rich Dad Poor Dad, Robert T. Kiyosaki, says it best: "The richest people in the world look for and build networks, everyone else looks for work."
You don’t have to be rich and famous to be successful. Applying these 5 financial habits into your own life can help you achieve all of your financial goals and aspirations.