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10 Money Mistakes Successful People Dont Make

12/22/15, 7:12 PM

10 Habits of The Richest People


in the World
COMMUNICATION (/COMMUNICATION)

MOTIVATION (/COMMUNICATION/MOTIVATION) BY ABAYOMI

JEGEDE (/AUTHOR/ABAYOMI-JEGEDE)

There is one secret that almost every rich person knows. This secret is very
important because its the reason they are rich in the first place. This big
secret can be summed up in the words of the mighty Aristotle: We are
what we repeatedly do. Excellence, then, is not an act, but a habit.
Rich people have gone through the painful process of forming rich peoples
habits, and you can become financially prosperous as well if you make up
your mind to do the same. Together, lets examine 10 habits of the richest
people in the world to help you make up your mind to make these habits
yours, too.

1. They are goal setters


Rich people set goals that make them rich. People dont become rich by
accident. Rich people are very deliberate: they set goals to become rich and
they eventually achieve those goals. The act of goal setting itself is a very
rewarding exercise because it helps you to see and feel the money you want
to have even before you get it.

2. They focus on one thing at a time


A laser beam can cut through very hard objectsit can cut through almost
anything, in factand this is because of its unusual ability to concentrate
all its power on a particular spot on the object until it begins to melt. Rich
people are usually like laser beams. They set outrageous goals, but they stay
focused on that one goal, directing all their activities and efforts towards
achieving that goal until they accomplish it. Average Joes, on the other
hand, often have no focus; they just tend to do whatever comes their way
and take whatever life hands them. If you want to be rich, be goal oriented
and stay focused.

3. They have great respect for time


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Brian Tracy said that rich people think in terms of what they earn hourly
rather than monthly or annually. Because they think hourly, whenever they
are spending time on unproductive activities, they think about how much
they are losing with every passing moment. Rich people dont spend too
much time on social media or watching TV. They work around the clock and
cannot afford to waste any minute of their day.

4. They spend less than they earn


As simple as this may seem, it is the secret to getting wealthy: always spend
less than you earn. The problem with poor-thinking people is they increase
their expenses as their income increases. They buy better cars, bigger
houses and they remain poor or average. Think about this in terms of
percentage; if you want to be rich then follow the motto, Save 10% of
whatever you earn. But be smart about it. As Warren Buffet said: Do not
save what is left after spending, but spend what is left after saving. I also
advise that you work with a budget and that you keep an income and
expenditure statement.

5. They work very hard


Except for people who inherited great riches, I have not seen any lazy rich
person. Rich people work very hard and they also work constantly. People
that work hard cant be behind, they are always on top of their profession
whether they are business people, self-employed, or even employees. They
always do things that ordinary people cannot do.

6. They continually learn and grow


The more you know is the more you earn. Your learning power determines
your earning power. As much as it is important to work hard, hard work
alone will not make you rich. Before money can be earned, value must be
given in return, and the only way to add more value to your clients is by
first adding more value to yourself. This can only be done through
continuous learning. Make up your mind to develop new skills and gain
more experience every day.

7. They keep rich company


Rich people dont have poor friends. As the old saying goes, Show me your
friends and I will tell you who you are. Let me tell you something: you may
not have so much money right now, but as long as you keep walking with
rich people or those with the potential to become rich, you will someday
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10 Money Mistakes Successful People Dont Make

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become very rich yourself.

8. They are persistent


Rich people dont give up. About 90% of rich people today did not become
rich the way they originally thought or intended. They tried, they failed,
and they rose up again many times before they eventually succeeded. You
may lose a lot of money in the process, but youll keep getting better by
learning from your mistakes and experiences until you get the financial
independence you desire.

9. They take calculated risks


Rich people are fond of taking risks. Once they decide they want to get
something, they will give whatever it takes to get it, even if it means risking
their lives sometimes. If you want to become rich, dont be afraid of taking
risks. Be bold and courageous, but also be calculative. Know what each
decision will cost you and never put all your eggs in one basket.

10. They are generous


Rich people are very generous. If you look at the lives of the richest people
in modern history, you will discover that a lot of them are great
philanthropists: people like Rockefeller, Andrew Carnegie, Bill Gates, Carlos
Slim, to name a few. Make giving one of your habits today and you will
become very rich someday, too.
By playing your cards right, you can make some easy money online
doing things youre already doing. 24 Easy Ways To Make Money On
The Internet (/articles/money/24-easy-ways-make-money-theinternet.html?

utm_source=post&utm_medium=byplayingyourcardsrightyoucanmakesomeeasymoneyonlinedoingthingsyoursquorea

Set a goal for yourself


"Life is hard at times. But when I overcome more challenges, I
become much stronger then. So Im going to embrace them."
Add To My Goal (/user/register?ref=set_goal_button&post=88790&goal=5)

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10 Money Mistakes Successful People Dont Make

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(http://www.lifehack.org/articles/money/10-moneymistakes-successful-people-dont-make.html)

10 Money Mistakes
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(http://www.lifehack.org/articles/money/15-surprisingways-rich-people-think-differently.html)

15 Surprising Ways Rich


People Think Differently
(http://www.lifehack.org/articles/money/15surprising-ways-rich-peoplethink-differently.html)
(http://www.lifehack.org/articles/productivity/12weekend-habits-highly-successful-people.html)

12 Weekend Habits of Highly


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10 Money Mistakes Successful


People Dont Make
MONEY (HTTP://WWW.LIFEHACK.ORG/MONEY) BY BRUCE HARPHAM
(HTTP://WWW.LIFEHACK.ORG/AUTHOR/BRUCE-HARPHAM)

Managing money effectively is a key success skill. Successful people make


the decision to become effective with money, many of them early in life.
Like any area of life, it is important to educate yourself about the threats
and challenges in the world. Taking the time to master a few key principles
will pay off for years to come.

1. They dont overspend; they live on less than


they make.
Living on less than you make is an essential money management skill.
Some of the worlds wealthiest people have taken this principle to heart.
For example, Sir John Templeton, a legendary investor who became a
billionaire, saved 50% of his income even when he grew up with limited
means. If that is more than you manage, dont worry! You can reach
financial success by saving 10-15% of your income.
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10 Money Mistakes Successful People Dont Make

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Tip: Learning to live on less than you earn takes time. Start by looking for
ways to save money: 55 Practical Ways To Save Money Eciently
(http://www.lifehack.org/articles/money/55-practical-ways-save-moneyeciently.html).
(/)

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2. They dont Uxate on price;
they understand
the
importance of value.

PRODUCTIVITY (/PRODUCTIVITY)

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The price you pay for an investment, a meal or piece of clothing is only part
of the story. Successful people also think about the value of that good. For
investments, they consider the prospects for the investment growing in the
future. For personal items, they look for high quality products that will last.
For example, a well made pair of business shoes may cost $200 or more but
these shoes can last for years with proper care.
Tip: Buy high quality products that will last for a long time.

3. They dont waste cash on fees and interest; they


know how to manage their banking
Carrying a balance on your credit card is incredibly expensive and sadly
common. According to CNN
(http://money.cnn.com/magazines/moneymag/money101/lesson9/), the
average American household carried over $15,000 in credit card debt.
Successful people also keep an eye on their bank feeshow much they pay
for ATM use and other transactions. These fees are easy to avoid with
planning once you understand how the system works. Simply reviewing
your financial accounts for 5-10 minutes each month is all it takes to
understand your fees.
Discover: 7 Essential Ways To Avoid Unnecessary Bank Charges
(http://www.lifehack.org/articles/money/7-essential-ways-avoidunnecessary-bank-charges.html).

4. They dont forget to adjust their Unances after


big changes in life.
Did you get married recently? Is your spouse referenced in your will? These
are some of the points that financially successful people manage
effectively. While you can automate a great deal of your finances, it is vital
to make adjustments when your life and family circumstances change
significantly. Sitting down by yourself (or with a financial expert) at least
once a year to review your life and financial plan is an excellent way to stay
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once a year to review your life and financial plan is an excellent way to stay
on top of important changes.
Learn: Arrange your finances for the long term with estate planning
(http://www.investopedia.com/university/estate-planning/).

5. They are not satisUed with a stagnant income;


they look for ways to increase their income.
Some people never ask for more money or simply settle for 1-3% increases.
Unfortunately, that rate of income growth means you are simply standing
stillinflation is slowly eating away at your purchasing power. Instead,
successful people look for ways to earn more income. Increased income
gives you more options for personal enjoyment, more capacity to give
money, and a sense of security.
Successful people take daily action to increase their income. For example,
they take a course to improve their skills or they contribute ideas to
improve the productivity of their companies. They also know how to ask for
more money (http://www.lifehack.org/articles/money/how-to-ask-for-andget-a-raise.html).
Tip: Do yourself a favor and learn about high paying fields: earn $100,000
in project management (http://projectmanagementhacks.com/projectmanager-salary-earn-100000/) and discover the highest paid jobs in
America (http://www.businessinsider.com/highest-paying-jobs-in-america2014-11).

6. They dont ignore Unancial statements.


Reaching financial success requires some slow and steady habits. That
includes forming a habit to monitor your financial statements. Successful
people set a time each month30 to 60 minutesto review all of their
financial accounts: investments, bank accounts, credit cards and more.
When they detect an error or omission, they take immediate action.
Tip: Set a recurring reminder in your calendar each month to review your
financial accounts.

7. They dont take foolish risks in money.


Warren Buffet is often quoted as saying, Rule number one is never lose
money. All investments carry some measure of risk (and therefore the
potential to lose money). That said, successful people use two powerful
tools to avoid losses. They understand the value of insurance to control risk
(e.g. home, auto, and life insurance) and the importance of asset allocation
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(e.g. home, auto, and life insurance) and the importance of asset allocation
(http://www.dummies.com/how-to/content/how-to-find-your-perfect-assetallocation.html).
Remember: If it sounds too good to be true (or if you dont understand
how it works), slow down and start asking plenty of questions.

8. They dont pretend to understand everything


when it comes to money.
The world is a vast and complex placesuccessful people know and deeply
understand this truth. When it comes to money, there is a lot of
information out there. Thats why successful people like Warren Buffet
understand their limits and focus on their strengths.
Tip: Review your knowledge of money and investments. If you are just
starting out, read one or two classic personal finance books
(http://www.lifehack.org/articles/money/20-best-personal-finance-booksyou-should-read-now.html). Or read 9 Cant-Miss Secrets Behind Warren
Buetts Wealth (http://www.lifehack.org/articles/money/9-cant-misssecrets-behind-warren-buetts-wealth.html) for more insights from one of
the worlds most successful investors.

9. They dont transfer responsibility to experts.


Successful people do seek out the advice of experts, yet they never yield
responsibility. For example, it is reasonable to seek advice from a tax
accountant in planning your financial affairs. However, successful people
take the time to ask questions and evaluate the person providing advice to
them.
Tip: When seeking advice from professionals like accountants and lawyers,
ask questions and seek to have the advice explained to you. Otherwise, it is
difficult to act on the advice.

10. They dont let the pursuit of money overcome


other values.
Seeking financial success is a valid goal. Significant financial resources give
you more options to give to causes you believe in. It also means improved
access to technology, health care and leisure. However, successful people
understand that financial success is only one aspect of a successful life. For
example, neglecting health in the pursuit of money is a poor strategy.
Tip: Review your personal goals to see if you have a balance between
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financial goals, career goals, family goals and other activities.


Featured photo credit: Money/martaposemuckel via pixabay.com (http://pixabay.com/en/money-coincash-loose-change-209090)
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15 Surprising Ways Rich People


Think Differently
MONEY (HTTP://WWW.LIFEHACK.ORG/MONEY) BY VINH LY (HTTP://WWW.LIFEHACK.ORG/AUTHOR/VINH-LY)

Rich people dont think like average people. Thats the world we live in.
Being able to maintain a massive wealth over a long period of time is not
something easy if you dont have the right mentality. How would you
explain that a large number of lottery winners who go broke
(http://www.businessinsider.com/10-lottery-winners-who-lost-it-all-20105?op=1) after a few years?
They dont have the rich people mentality.
When you look at the way rich people think, you will notice some intriguing
similarities.

They think about themselves Urst.


Before giving large sums of money to charities, they make sure they help
themselves first. They did not get rich and stay rich by helping everybody
carelessly. When they do something, they know whats in it for them. Its
not selfishness, its staying rich.

They are constantly thinking about the future.


The future is only the present waiting to happen. Wealthy people know that
if they want to keep their lifestyle, they have to think about the long-term.
Globalization, financial crisis, and world conflicts are opportunities or
threats for the rich individual. Not seizing long-term opportunities and
ignoring potential threats is a recipe for becoming average.

They are action-oriented.


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They dont just relax and wait for interest to come in. In an ever-changing
world, rich people think about the future, but have the means to act now.
Good investors know how to make a quick decision to seize a fleeting
opportunity.

They are passionate.


Their passions can vary, but rich people have the money and the time to
fulfill their passions. If they dont like to do something, they can always
find somebody else to do it for them and then spend more time hunting
deers if thats what they like.

They prefer speciUc knowledge over formal


education.
Since they are action-oriented, they prefer an education that serves a
concrete goal. Education is important, but becoming excellent in a specific
area is more important. Rich people become extremely rich by being
excellent at doing something or at doing something nobody has dared to
do. College drop-outs following their start-up dreams to become
billionaires are a long-lasting clich, but the truth is that developing
specific expertise early on will give them an edge.

They are outrageously ambitious.


And they need to be. If they were not, they would settle with richer than
average. Very rich people will never be satisfied with the amount of wealth
they have. They have an internal compass that directs towards more
money, which means bigger projects.

They are not afraid to invest.


Rich people have been presented with countless get-rich-quick scams, and
they know what it takes to be where there are: effort, time, or money. Since
they got to a point where the biggest leverage they have is money, and
thats what they have more of than the others, they know they will have to
invest to earn. You win some, you lose some.

They know how to leverage other peoples money.


Even if they have a lot of money, they know how to use other peoples
money to get what they want. Bank loans, strategic partnerships a global
vision will allow them to find other peoples money to make their
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vision will allow them to find other peoples money to make their
investment worthwhile.

They surround themselves with like-minded


people.
Having the lifestyle of rich people is very peculiar they dont share the
same interests as other people, and there are not many people with whom
you can share your concerns about having to pay millions in income taxes.
They will flock together in similar gatherings and enjoy being together
anywhere in the world.

They choose the best employees.


They know that their success lies upon the people that work for them. Rich
people know what they want, have very little time for administrative stuff,
and rely enormously on their employees. Since there is a lot at stake, they
will choose the best and pay accordingly.

They can size anybody up in an instant.


Rich people are always solicited by average people, who always come to ask
them for something. After a while, it becomes easy for them to evaluate
people. Its a matter of practice!

They have a very accurate detector.


They will ask few questions, but they will learn a lot from you. Since they
have a global vision, they will challenge your proposals with their
experience or outside-the-box comparisons. They will see if you are faking
expertise, even if they dont know your field.

They dont care about what you think of them.


They dont have anything to prove any more. They wont feel the need to
show off their money or to show some kind of status. They will be very
subtle (http://www.vinh.ly/luxury-marketing-patricians-parvenus-poseursand-proletarians/) in showing that they belong to a higher social class.

They think of the world as a small place.


The super wealthy are not stuck in a specific country. They are buying the
best places around the world and consider the world as being a small place.
Being in three different countries in one day is not surprising for them, and
they will get a feel of where the worlds pulse is.
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they will get a feel of where the worlds pulse is.

They raise their children to be rich.


Their children will handle a huge fortune as well. It is quite a sad prospect
to think that your children will dilapidate the money you or your parents
made with hard work. They will try to teach them the value of money so
that they learn to take nothing for granted.
There is one secret that almost every rich person knows. This secret is
very important because its the reason they are rich in the first place.
10 Habits of The Richest People in the World
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