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money
habits
of the rich
PAUL ROBINSON
INTRODUCTION
Most of the things we do everyday are just habits. First we make them
then they make us. Habits are very powerful because they almost
determine 90% of our daily activities and those activities determine the
result and outcome in our lives. All of us have money habits. For example,
saving money is a habit just as money spending habits. Surprisingly our
money habits will eventually determine whether we are going to end up
poor or rich. I know it a profound statement,but that is just the way it is.
The sad fact is that we do not pay attention to our habits.
Let us look at the money habits of the rich. Rich people have different
money habits that are completely a contrast to that of poor people. There
are few exceptional habits; usually the rich practice them as their way of
life. The Rich has seven powerful financial habits. These habits not only
make them acquire wealth,but also help them manage and keep their
wealth.
HABIT ONE
PAY YOURSELF FIRST
Some people have fixed income as salaried people and some will have
variable income like business people. Whatever may be the income,a
part of your earning is put aside every month to make a fortune matured
enough to make an investment in passive income opportunities.
Now pause for a moment and ask this question to yourself.
Wealthy people love to save money by spending it wisely. And they invest
10% of what they earn in to their Financial Freedom Account. The
importance of this account is that,this will help you to later invest your
money on passive income streaming businesses like rental properties,
mutual funds or stocks.
It is not about how much you make,it is how much you keep that matters.
Many people say 'I don't have enough money to save on the first place.'
Well then the question is 'How much is enough?. Saving is not about the
money. It is about the habit of saving money. Even if you can save one
rupee,it is a saving habit. If you have debts,then borrow an extra rupee to
save. Even if it is little start saving today. May be with a piggy bank. Take a
baby step. If you think when you have plenty of money,you can manage it.
You are wrong. It is when you begin to manage what you have now; you
will have plenty of it. Those people,who get to manage plenty of money
today,were good at managing small amounts of money earlier. You can
ask any wealthy person and they will agree on this.
Rich and poor have different investment models. For most people their
investment model is you earn 100 percent and your expenses and
liabilities are 100 percent and your saving and assets are 0 percent. It is a
paycheck to pay check adjustment,which means this month's paycheck
clears last month's bills. I know that many people are caught up in this
vicious circle. For some people there is no investment model because,
money is never enough to think about investments. But Wealthy people
approach their investments in a different manner. They take the money
they earn and invest a large portion of it in income producing assets such
as real estate,small businesses,stocks,and bonds,gold and so on. If you
want to become wealthy,follow their lead.
Will Rogers an American humorist and actor said once” Too many
people spend money they haven't earned,to buy things they don't want,to
impress people they don't like” Trust me people do these.
Spending too much can wreck havoc with your financial goals. It keeps
you in debt,prevents you from saving as much as could,and turn your
focus to more consumption, rather than to wealth creation and
accumulation. It will be surprising to check on everything you bought in a
year and seldom used and the price you paid for all that actually equals to
your credit card debts or even more.
This is how you develop the frugal habit. First prioritize your expenses,
follow the First thing first policy to spending. That which gratifies the most
should be bought first. That which gratifies least,try not to even buy it if
you can.
There is an Old Russian saying 'spending is quick and earning is long'.
Therefore be very prudent and wise when it comes to spending.
Stop paying by credit card and start paying in cash for virtually
everything. When you buy in cash you tend to think what you are buying
and why you are buying. Today's plastic currency has no intrinsic value
of money. Remember this, whatever you buy today with tomorrow's
income will incur interest; it costs you more. Using credit card is
borrowing and using debit card is still spending.
Stop compulsive borrowing and avoid the vicious circles of debts. Lots of
individuals who have debts are having the tendency to try harder to be in
more 'comfortable debts”. Debts arise from the habit of overspending on
too many desires and having no self-control. Beware of small expenses; a
small leak can sink a shi p. If you can master the spending game you can
get out of debts very easily.
The best thing you can do if you find yourself in a hole is to stop digging
further. If you have debts,clear the small ones first because it's easy and it
will give you a sense of achievement. When you are in debts,go on a
money diet, which means you will run your expenses with minimum
amount of money and you will save enough to pay back. As you commit
enough to being debt free and saving more,you will encounter an almost
miraculous force working in your life. You can measure your success in
terms of debts paid than goods purchased. If you want to get out of debt
stop borrowing money from institutions that charge you big interests.
And remember one thing 'Forgetting a debt does not pay it'.
Taking care of your business also means having a vision and making
progress everyday.
Believe in your intuition and what conscience is trying to tell you every
time. Listen to your inner voice. Your inner voice is wiser than your
rational self. Pay attention to every detail. Plan the worst-case scenario.
Have a Plan B. The American CIA has a princi ple 'Hope for the best and
prepare for the worst'. That is being optimistic and practical at the same
time.
HABIT SIX
TITHING
Giving has it's own rewards. Giving and receiving is the two sides of the
same coin. It is sowing and reaping and that is good karma. TITHING
follows the princi ple that THE MORE YOU GIVE THE MORE YOU
RECEIVE. You may wonder now,How does this happen?
Most of us believe that the more we give the more we lose or deducted
from our wealth quotient. But that's not true. Let me explain this. Giving
actually expands money. When you give money from an attitude of
gratitude,it thrusts you from the material state into the ethereal or spiritual
dimension. Many people in poverty consciousness think that money
shrinks when you give it away. Their math's is that 100 minus 10 is 90.A
rich person knows that giving money actually expands,10 times in to 100
that is 1000.This is the spiritual math and the spiritual dimension to
wealth. Sharing money is multi plied not money subtracted.
Money like harvest is created to multi ply. As Junior Murchison once puts
it” Money is like manure. If you spread it around it does a lot of good. But
if you pile it up in one place it stinks like hell” You can have everything
you want if you help others get what they want. Practice the power of
giving. Because IN LIFE WHAT YOU GIVE YOU GET TO KEEP,
WHAT YOU FAIL TO GIVE YOU LOSE FOREVER.
Now many people will say how I can give away when I don't have enough
money for myself. We believe that money is a scarce commodity,which is
not true. There are trillions and trillions of cash printed everyday joining
the pool of abundance. Think of this one. There are 600 billion people in
this planet and there are so many people lonely out here feeling left alone
and friendless even if there are so many people around us.
One of the biggest challenges to big success is the small success of people
that put them on a complacent stage. When you are open to learning new
information in this rapidly changing economy you get to learn the fact that
there is some one doing it better than you. Learning puts you on your toes.
When you are complacent about your business,you tend to relax and
that's when your competitors will overtake you. When you are
complacent about your health,you tend to neglect it and t hat's when
illnesses will attack you. Therefore,no matter how successful or wealthy
you might think you are,always ask yourself how can be the best.
Feed your mind,with inputs that will empower you. An hour of power can
give you stimulations for success; inspirations to take action,and focus on
completing things you have been procrastinating for a while. Bottom line
of this daily habit is to stay motivated and inspired.
These are the major 7 habits of the rich. There can be more habits but
these 7 habits are the strong foundation for our financial success. As you
develop these 7 basic financial habits you will surely build a momentum
with more richer habits.
Paul Robinson is the best selling author of several hit motivational audio books and an
internationally sought after motivational teacher who conducts seminars and workshops for
personal and business growth.
You can write to him at positiverevolution@gmail.com or visit him at
www.positiverevolutions.com