10 Habits That Financially Successful People Have

10 Habits That Financially Successful People Have

By: Beverly Bird

Can You Get Ahead Just By Changing Your Habits?

We’ve all done it: ogling massive homes and estates while we’re driving, wondering how the owners achieved all that success and wishing for a little of it ourselves. Or maybe your neighbor just bought a brand new Ferrari. How did he become so financially successful?

Here’s a hint: He might not be. He might just appear to be successful. In fact, the world’s most successful people generally don’t spend wildly. They’ve developed good fiscal habits and they’re exactly that – habits. They’re consistent.

A Penny Saved…

Successful people routinely save. This doesn’t necessarily mean dropping their change into a jar every night before bed, although this is certainly beneficial, too. It means never spending more than they have to.

Think of it this way: Every time single time you use that credit card or write a check, you have less money than you had a minute before. The equation only works if you spend less than you earn. It’s that simple.

You might have heard about Warren Buffett’s house, the one he bought for cash decades ago and continues to live in. It’s not a mansion. In fact, it’s a little on the small side. There’s no doubt in the world that Buffett can afford a lot more, but he’s lived with the habit of deferring instant and copious gratification in exchange for long-term wealth and security.

Are you stretching your budget to accommodate a lifestyle you can’t easily afford? Do you find yourself juggling your finances every month because you don’t quite earn enough to make all ends meet? This might be a habit you want to get out of.

And It’s About How You Save

About that change jar you toss your coins into every night. Get your money out of there and put it in some type of a financial account, even if it’s just a run-of-the-mill bank savings account, where it can earn some interest and grow.

Financial experts tout the 10 percent rule – you should regularly and methodically tuck aside this much of your income. Financially successful people tend to make it a habit to do more than that. Think 15 percent or even 20 percent if you can manage it.

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