Are you wealthy? What is it that the wealthy do differently than the poor? There has been a lot of research recently on the mindset, habits and choices that the wealthy make that distinguish them. How do you define being wealthy? “Wealthy” can vary depending on where you live. For example, in a recent Realtor.com article, San Jose ranked #1 (that’s not good) as the least affordable market. The average home mortgage uses 72.4% of the owner’s monthly income. Wow! To put that into comparison, New York City is only 46.6% and Atlanta only 19.8%. So, being wealthy in San Jose will take more income than say Detroit.
But, what do the wealthy do differently; how do they think that makes the biggest difference? You would be surprised to find that intelligence has very little to do with it. Let’s look at 10 traits and habits of the wealthy, ways they are different.
- They live on a budget- This may sound obvious but wealthy people do not accumulate credit card debt and they minimize auto loans or other types of “pay later” arrangements. Some good rules of thumb are to spend less than 25% of your income on housing (sorry San Jose and New York) and less than 15% on food. If you have a 401(K) with matching….maximize your contributions.
- Have a purpose and live on purpose- Do you know why you get up each day? What causes you to take the stairs 2 at a time? Knowing your purpose will guide your decisions. As Zig Ziglar often taught- be a meaningful specific, not a wandering generality.
- Read every day- I like to set aside 10 minutes every day to read a good book. Often I read nonfiction, but sometimes I do enjoy a fictional story. (See a list of past books here). Readers are learners and learners are leaders. The wealthy read while the poor watch tv. I am a believer that you should live your own dream, not watch other people (actors) live theirs.
- Get a mentor. I have spoken a lot in this blog and on the podcast about the value of a mentor (read more here or listen here). My mentor has inspired me to grow beyond anything I could have imagined and I owe a lot of my success today to his mentorship. Wealthy people learn from positive mentors.
- Avoid the negative- negative people suck. Get them out of your life. Ziglar also taught that you become part of what you are around. Spend time with mentors (see #4 above) and avoid anyone who doesn’t see your best interest. Spend time with those who will boost you to success.
- Volunteer regularly- You can have anything you want in life if you just help enough other people get what they want (Ziglar again). Be a part of your community. Build and develop others. Be for someone else the mentor you want to have (see #4 again). It is amazing the energy and motivation you can get from helping others and being involved in a cause greater than yourself. Wealthy people are too busy helping others to get caught up in selfishness.
- Work hard- While wealthy people may not be distinguished from their poor counterparts in intelligence, they are distinguished in their commitment to a hard day’s work. Don’t be afraid of working hard. Good things come to people who are willing to give it their all and put their nose to the grind and drive hard.
- Do it now- The wealthy do “now” what needs to be done. Procrastination is a trait that is absent in the wealthy. Some of the most successful people I know, and the busiest, are those who do their responsibilities immediately and never delay the completion. It is often heard that if you want something done ask a busy person. This is true because they get it done- without procrastination.
- Goal oriented and accountable- The wealthy have objectives and know the direction they are headed. They set their sights on the finish line and work to achieve it. They are careful not to dream and fantasize but to be realistic and then focus (follow one course until success).
- Never give up…never surrender- a favorite movie of mine from many years ago is Galaxy Quest, a comedy satire of Star Trek. One of the characters would always say “Never give up…never surrender” and that is the mantra of the wealthy. It is inevitable that times will get tough, they always do, but the wealthy persevere. When obstacles get in their way they just keep moving.
There you have it, 10 traits and habits of the wealthy. How many of these traits do you have? I know that I could work on a couple of them (ok all 10). The interesting thing is that a whole bunch of research has been done about this topic; and the difference between wealth and poverty is easy to understand and easy to change yet so few people are willing to do it. Are you?
Question: Which one of the wealthy traits do you think has had the biggest impact on your success? Which one do you struggle with the most? Leave your comments below of by clicking here.
About The Host
Jake Carlson is a popular speaker and blogger. He recently packed up his family for a yearlong, worldwide, whirlwind, trip through Asia and Europe (learn more). He is the founder of The Smart Fundraiser and Modern Leadership. Follow him on Facebook, Twitter, Instagram or LinkedIn. Read more about him here.
