The secret to finding financial success has been something that has eluded many of us for our entire lives. Yet there are multitudes of individuals who enjoy a comfortable life due to their financial success. As it turns out, many of these financially successful people all have certain habits in common with each other. Here is a list of the top 20 key habits that financially successful people employ.
1. They establish and follow a budget.
Being able to plan ahead for your financial needs and setting limits on certain spending types will almost always result in better results in the long run. Anyone can make a budget, but staying disciplined enough to follow it is more difficult.
2. They keep their recurring, monthly expenses to a minimum.
Along with making and keeping that budget, they also evaluate their monthly costs and reduce them when possible. By avoiding this unnecessary spending they allow a larger portion of their income to go towards saving.
3. They have a healthy financial education.
Financially successful people are well aware of the current economic trends and are constantly increasing their knowledge so that they are able to make the right decisions when it comes to managing their money.
4. They focus on the long-term.
People who enjoy financial success today didn’t start planning for it yesterday. Being able to think about long-term financial goals while dealing with today’s fiscal circumstances is a key habit to practice if you want to achieve financial success.
5. They have a great deal of respect for money and realize its value.
Since today’s modern world revolves around the almighty dollar, it’s the people who recognize and understand the value of money that end up with more of it.
6. They make savings a priority.
Simple math will tell you that if you manage to save money throughout your career, you will end up with a much more financially secure future. Many of the most successful people today share the same habit of always putting some of their funds aside in savings. Having a small portion of your paycheck directly deposited into a savings account every payday is a great way to achieve this goal, and you will most likely never even notice the slight adjustment to your income.
7. They do not compare themselves to others.
Simply put, financially successful people are not interested in keeping up with the Joneses. They do not waste time or money by looking at what others have and trying to have that too. They keep focused on their own goals and their own financial abilities.
8. They eliminate and avoid debt.
Financial success can be easily achieved when there is no debt to stand in your way. While it is not always practical or possible for many of us to avoid incurring debt, it should be a top priority to try to eliminate as much of it as possible.
9. They control impulse spending.
We all have moments where we have that sudden impulse to buy something we want, but may not necessarily need. The difference between most people and those whom enjoy the financially secure lifestyle is the ability to control this impulse.
- They invest in their future.
Making decisions to invest in your retirement early will only put you that much further down the road of financial security in your later life. Contributing to a 401(k) plan or investing in other secure investments will secure a more comfortable monetary situation for your future.
11. They are careful when making decisions.
People who have found success with money usually have this same habit in common. They rarely make quick decisions without giving the situation much thought. Instead they take the time needed to research the possibilities, pay attention to current circumstances and focus on what’s really important. They take whatever time is needed to be able to make informed, calculated and logical decisions.
12. They track their debts.
It’s easy to sometimes lose track of how much you owe on each of your credit cards or loans. But people who flourish financially usually do so because they are keenly aware of exactly how much they owe, the interest rates on each item, and the extra costs associated with those debts. By tracking and staying aware of each of your debts, you will be able to better focus on which to pay off faster and which one can wait a little longer.
13. They live frugally.Many of the richest people in the world enjoy an extravagant life filled with many luxuries that most people can only dream of. But they didn’t start out with the penthouse and the jet. Many of them started off by living frugally and staying within their means. They evaluate their expenses to eliminate what is unnecessary and constantly make adjustments to their budget when possible.
14. They set goals.
Most people would agree that the top businessmen in the world probably did not just wake up one day and wonder how they became CEO of a leading organization. It is more likely that they started setting goals for themselves at an early age and continued to set new goals when the old ones were achieved.
15. They don’t procrastinate.
When they receive a bill, they pay it. They do not ignore debts hoping they will go away, nor do they put them off until later only to accrue unnecessary additional fees or interest. They pay their bills and other debts immediately.
16. They start early.
You are never too young to start thinking and planning for your financial future. Whether its starting a saving’s account when you are still living at home with your parents or investing in a retirement plan as soon as you are able to, every bit that you are able to save makes a big difference down the line.
17. They work with professional advisers.
Even the smartest and most successful individuals in the world still rely on the assistance of other professionals at times. They are not afraid to seek the advice and input from experts or other people who specialize in certain areas.
18. They are patient.
Very rarely does someone become a financial success overnight. More often, that success comes from years of hard work and dedication. The ultimate habit to have in order to accomplish that feat is simply patience.
19. They never get discouraged.
Something else that happens very rarely is for a new idea to make it big on the first try. But people who ultimately find success are rarely found giving up on their goals quickly. Be prepared for dead-ends, hard times, and unexpected twists in the road to financial success.
20. They learn from past mistakes.
Making mistakes with money is a common occurrence in life. We all do it, but those of us who ultimately achieve financial success in life not only make those mistakes, but more importantly, they learn from them. Bill Gates, well known as one of the richest people in the world once said, “It’s fine to celebrate success, but it is more important to heed the lessons of failure.”
So try to imbibe some of these habits or characteristics from people that have somehow made a ‘habit’ of success and find yourself at the top.