Success leaves clues. These are the clues…
If you want to become successful in any area, look at what the pros are doing. It’s a great rule for any goal, and this concept also applies to money. Analyzing people who have achieved financial freedom is a great way to start your path to wealth.
I’ve interviewed successful people on my podcast, watched their YouTube videos, and participated in their Facebook Groups for years. As I interviewed and analyzed more people, the same traits kept repeating.
Rich people have different upbringings, make different choices, and built their wealth through various paths. However, they all have a few things in common. Emulate these top traits if you want to boost your wealth.
#1: Continuous Learning
Rich people continuous read the news, listen to their audiobooks, and watch YouTube videos around money. Even though they know most of this stuff already, it’s a good refresher.
However, this knowledge seeking process can result in the discovery of income streams and investments with high potential.
Learning allows you to utilize your money so you live your dream lifestyle and find opportunities that others will initially miss. You can discover new insights or develop your skillset around a few key areas that attribute to the bulk of your income.
#2: Make New Connections
Rich people know a lot of other rich people, and that’s by design. When you start the path of money accumulation, you become more conscious of the people in your life. Do they help you achieve your goals and provide great camaraderie?
Or does spending time with them eat away at your energy and leave you unmotivated?
The internet has made it easier for people to connect with others on scale. Participate in the investing Facebook Groups and get in front of people who have done what you want to do. Start a podcast and interview people who have achieved financial freedom. Connect with people on LinkedIn and stay in touch.
You keep up with some connections more often than others. When you know 100s of people, it’s just not possible to stay in touch with everyone. You can post on your social networks to reach more of those people at the same time.
As people engage with your posts and you see what they’re posting, you’ll get a better understanding of who you should spend more time with. Adapt accordingly.
#3: Track Their Money
Rich people treat their personal finances like a major corporation. They know how much they make from each income stream, their bottom line, all of their different expenses, and everything else they need to know about their money.
With a basic understanding of Excel or Numbers, you can create detailed income and expense statements for your personal finance to keep your income growth in perspective.
Keeping track of your current income and expenses and filling in the gaps for past years will reveal a lot about your money. You can find extraneous expenses to chop down on or income streams that are worth a closer look.
If you don’t want to create the spreadsheets yourself, you can borrow my income spreadsheet here.
#4: Invest For The Long-Term
Let’s say you invest in the stock market and your position goes down by 20%. What happens next? Do you hold onto the stock or sell it?
In some cases, it makes sense to sell. If you held onto Nikola Motors shares and then saw the short seller report from Hindenburg Research, it would have made sense if you sold your shares.
However, if you held onto shares of a company like Amazon, and you believe in the long-term future of that company, would you sell your shares on a 20% drop?
Rich people invest with years in mind instead of days, weeks, and months that are all based on the stock price movement. Some people will hold onto their investments for decades. While this holding period can result in lower growth later in the journey, holding onto investments longer gives them more time to grow their income versus constantly refreshing their portfolios.
#5: Start The Day Off Right
The way you start your day plays a big role in determining how the entire day will go. Rich people understand this truth and start their day doing activities that stimulate their mind and gives them energy. These activities may range from working out, drinking a glass of water, having a small breakfast, getting a small item done that doesn’t include checking your inbox, or something else.
There is no cookie cutter morning routine that works for everyone, but identifying your ideal morning routine will set you up for a productive day.
Rich people all follow similar playbooks. These are the five traits they all share. Incorporating these traits into your life can set you on the journey to achieving financial freedom.