Here are 10 big-picture lessons that you can learn from the rich to turnaround your financial health.
1. Own your wealth and take full responsibility for it
When issues appear, poor individuals find fault, grumble, and defend their weaknesses. They accuse everybody except themselves for their miserable finances.
In contrast, the rich have a success mindset. When a problem surfaces, they see it as a challenge to be overcome. They acknowledge full accountability and to gain from their missteps, and change if need be.
They realise that having cash is significant and do anything they can to pull in the money into their lives.
2. Time is money: Waste it and it’s gone forever
Many working adults waste time on matters that don’t bring them any closer to their financial goals. Are you spending your day on things that matter?
To the rich, time is worth much more than money. The rich do not hesitate to buy time but the poor waste time. Yet, they complain there’s not enough time.
The rich place more effort and time into tasks that fabricate achievement and wealth. Instead of sitting in front of the TV binge-watching The Simpsons, work on improving your skills.
The rich understand the value of their time. They recognise whether a task brings benefits or is for entertainment’s sake.
3. Toss out negative influences
The rich do not hesitate to drop or cut-off negative people and habits.
For instance, lessen time spent with those who do things that don’t move you towards success. Ignore the doubters in your life or cut them out.
Some of your family members may unintentionally suppress and discourage you from achieving your ambitions. Listen with a grain of salt but do not show disrespect.
4. Aim high, shoot high: Set high standards/goals
If you target for a “good” result you will get a “medium” outcome. If you target for “out of this world” results, you will get “excellence”. This is what the wealthiest do: set high expectations.
Want the best and to come out winning? You’ve got to want it and work on it to be the top. Nobody remembers the runners-up, the second places, the silver medalists.
Being wealthy is intentional so set high financial goals.
For example, your goal is “net worth up by 50% in five years”. And not lame and general targets such as “living a comfortable life”, “comfortable retirement” or “happy to survive past 65 years old”.
You must either be rich or not rich – not in-between. If you’re pursuing “comfortable” or “survival” themes, then riches is already beyond your reach.
Remember, your ultimate purpose is to amass wealth and be filthy rich. Be bold and straightforward. Never fear thinking big.
5. No risks, no gain
“But..”,”What if…”, “I’m worried…”.This is how the poor reacts to taking risks.
This lack of faith and confidence prevents poor people from acting rather than thinking. They are never ready to take that chance and change their lives.
Rich individuals respond with a “Yes!” whenever possibilities come knocking. They trust that it will work, that they will rake in tonnes of cash.
Rich individuals believe in grabbing opportunities but knowing the risks involved.
They think, and afterwards, they act, to take advantage of the possibilities presented, despite the hazards.
6. Be your own boss… ultimately. Meanwhile, work to learn
No multimillionaire accumulated his riches with a “stable salary”. Those are for those who aren’t sure of their value, or who imagine they are worth what their manager thinks they are worth.
Basically, you are exchanging your time for cash.
Rich individuals don’t exchange time for cash – they exchange value for cash. Confidence and knowing their value is what the rich are known for. And they never report to anyone but themselves.
7. Financial success = increasing net worth and not a large salary
The poor concentrate on getting a promotion and a higher salary but the rich pay attention to increasing their net worth.
Earning your salary is the beginning. You work hard to make that money. Use that as “seed” money to work harder for you to earn more money.
How? Invest. Not save. Saving does not develop wealth. Investing does.
The rich realise that wealth creation depends on investing. Poor people (risk-averse) don’t notice the opportunities for investment, they only see the risk.
8. It’s not sufficient to work hard… work smart too
Rich individuals work hard, and smart. For the rich, working hard is a short-term process, while it is a long-term for the poor.
Wealthy people work hard because they enjoy their careers, and to learn. The poor work hard to make ends meet, to pay the bills.
Grow your money to increase your net worth through investments and other strategies. Get help from a financial advisor.
The rich consult with financial advisors to maximise their money-earning power. Entrust tasks (like investment planning) you are not familiar with to a professional who can assist you to stay on course and prevent making costly investment blunders while you manage your busy life.
9. Learn and work for personal development
You must have a solid base to build your success upon. Constantly seek to improve your professional skills and learn from millionaires.
This includes attending wealth-building programmes, reading, networking with the wealthy people or further your personal development.
10. Honesty is the best policy
Pure and simple honesty in your business dealings will attract money.
If you want wealth, it will be through doing business with people.
There is a well-liked trade maxim that supports this: “People only do business with those whom they know, like, and trust.”
If you cheat, and no person trusts you, getting business, building partnerships, and closing offers can be exhausting. Maybe even unattainable.