Posted onOctober 10/2016
If you’ve ever wondered what the secret is to financial success, you’re not alone. The good news is that it’s not a secret once you understand the habits and behaviours of financially successful people. You can start adopting these habits and behaviours for yourself today. You won’t become wealthy overnight, but with time, you will certainly begin to see the results.
Financially successful people have clear goals in their minds. This is not the same as wishful thinking or even desire; it is a clear goal that must be achieved at some point in the future. Very often this primary goal is preceded by the accomplishment of lesser but related goals, hence why successful people often have short, medium and long-term goals in mind.
Financially successful people do not live above their means; they live within their means and work to slowly expand them. This also means putting off short-term gratification and not trying to “keep up with the Joneses.” They may put off going on vacation or choose not to buy that dress, and instead they spend their money on the bare essentials.
Putting Money to Work
Financially successful people work for their money, and then make their money work even harder for them. They take an active interest in their financial education and don’t put off saving for tomorrow. In fact, they often have their money automatically deducted from their paychecks and go straight to an interest-bearing savings account.
Financially successful people aren’t afraid to take risks. Risk taking is not the same as gambling (which is often what many people do). After careful analysis (often with the help of a competent financial advisor) they come up with a plan to invest their money in vehicles that have the best risk-reward ratio. Someone who invests in a safe vehicle that earns two percent will not do as well as someone who invests the same amount in an investment that yields eight percent.
Learning from Failure
Financially successful people learn from their failures. For them, it’s an opportunity to learn valuable lessons that will help them in the future. There is hardly a successful person who didn’t learn from failure.
Financially successful people are detail-oriented. They notice subtleties that can impact you in the long run -- especially subtleties in financial statements. They will notice if a utility bill is higher than normal, and they will not be afraid to negotiate a lower rate.
As you can see, becoming financially successful is not rocket science, nor is it a secret. It’s about taking up small daily habits that are so easy to neglect. A solid financial house is built upon sound daily habits, because habits ultimately shape your destiny. If you want to learn how to be financially successful, get in touch with one of our advisors