Ever wondered what the big names like Warren Buffet, Elon Musk, Bill gates, Jeff Bezos and Oprah Winfrey have in common? Yes of course they are amongst the richest people in the world, but what more? One more thing that separates these financial biggies from others, are their day to day lifestyle and money habits that make them successful.?
Becoming rich and successful is everyone's dream. But becoming rich is not just about earning more money. How you plan each day, what habits you inculcate in your routine, how you maintain the work-life balance, what you do with your money, how you invest it etc. are all equally important in your journey to becoming wealthy. Ultimately, you should control your wealth, not the other way around!
Now that we have your attention here are some tips you can follow. Who knows, you may be the next millionaire someday!
1. Adopt the 30-Day Rule before making impulsive spends
Have you ever bought something impulsively only to regret it a few days later? I am sure most of us have gone through that. This is exactly where the famous 30 day rule can come to your rescue!
Simply put, every time you are about to make an impulsive purchase, just stop and defer the purchase for the next 30 days. Maybe add it to your wish-list or just let it stay in your cart if shopping online, or just convince yourself that if you really need that purchase, you will come back to the store after 30 days. What this does is, it cuts out most of the irrational purchases, and the things you still end up purchasing post 30 days would in all likelihood be something you actually wanted!
2. Save first, spend later
In Warren Buffett¡¯s words, if you buy things you don¡¯t need, you will soon sell things you need. That is exactly why most of the rich people save first and spend later.?
So stop cribbing about your inability to save and get rid of excuses like insufficient income, high expenses or the no compromise policy on fulfilment of the YOLO (You only live once) motto. The key to saving lies in the habit of saving first and spending later. Every month, set aside a part of your income as your savings. It can be 20%,30% or 50%, any percentage to begin with. Just ensure to be disciplined and stay true to the habit. And remember that whenever your income rises, increase the proportion of savings, instead of spiking up your spends upon obtaining more money!?
3. Pen down your thoughts everyday
Before this digital world bombarded everyone¡¯s lives, remember the age old traditional way of journaling your each and every day by writing it down with pen and paper? That is in fact, amongst the most common habits which many rich and successful people follow. When you write (and not type) everyday, you reflect upon your thoughts, slow down and train the mind to think coherently1. This way, penning down your thoughts and experiences each day enables you to reflect on how your day went, what you could have done differently and what learning you got from the little or big experiences that day. It's completely fine if you wish to type an online blog or journal instead of penning it down, either way, it's all about allowing yourself to reflect upon your thoughts and actions peacefully.
4. Always remain a student of life
The world is dynamic. And whether it¡¯s lifestyle, technology, science etc. change has indeed become the only constant in life. What you know or have excelled in today, may become redundant tomorrow. So, the only way to continuously evolve is by learning. The biggest and most successful personalities in the world, like Indra Nooyi and Warren Buffett, have always emphasised that the secret of continuous learning is to remain the student of life. Life always has something to teach every day, in unimaginable ways. All it takes is a sincere student to keep learning and growing!
5. Resist the obvious
When you keep doing what everyone else does, you become what everyone else is. To stand out from the crowd, like most successful and rich people in the world, you need to rest doing and thinking the obvious. For every big or small situation you face, think out of the box and challenge the old norms which are being followed blindly for decades. This way, you develop the habit of stepping away from the crowd, and allow yourself the freedom to explore and experiment. Soon, this would eventually become the normal way you think or do things everyday.
6. Read everyday!
Warren Buffet had once said, the power of compounded interest begins to yield results in a few years time. That¡¯s exactly how knowledge also tends to build up, like compound interest. Buffett¡¯s reading habit is what he gives credit to for serving as the foundational instrument to continuously improve his knowledge. Did you know, 88% of wealthy people develop the habit of reading 30 minutes per day. So, just grab your cup of coffee and let the avid reader hidden inside come out and dwell you into the never-ending ocean of knowledge.?
7. There¡¯s only one right time to invest-Now!
The great Albert Einstein is reputed to have said that compound interest is the eighth wonder of the world. Those who understand it, earn it; while those who don't, pay it.
Yes, one of the biggest secrets of the rich and successful has been spilled. The magical power of compounding is something that has remained one of Warren Buffett¡¯s central principal investments.?
The sooner you begin investing, the more time and scope you allow for the magical power of compounding to work wonders for you in the long run. It is one of the most powerful weapons that every person who became rich swears by. Compounding increases your invested money¡¯s value by getting the interest earned added back to the principal and thereby generating exponentially greater returns. This especially works wonders over the long term.
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