They do not follow a single path that rich people to gain their wealth.
Some were born with generational wealth This gives them the beginning, while others go through a stain, determination and Career decisions. Happiness May Also be a factor.
But there is A few usual habits among rich people, Independent millionaireAuthor and TV presenter Ramit Sethi wrote in recently bulletin.
“It’s time to stop worshiping rich people – and start copying what they really do,” he wrote.
Here are the five rules that Sethhi said that rich people live and how you can use them to grow your own wealth.
1. Know the stings and exit of your finances
If you know how much money you make in a year, you are already one step ahead of many the people with which Sethhi talked to Over the decades, he helps people with money.
“You have to Know your numbers“Sethi recently said CNBC Make.” Shocking, 50% of couples I say they don’t know their own household income. 90% of people in debt do not know how long they owe. “
It is easy to follow and obsessed with “3 questions” like the price of eggs or gallons of gas, Sethi said. But these factors probably don’t make a difference between Be able to withdraw and work full -time in your golden years. Instead, focus on seven key questions, wrote:
- How much money do I make?
- How long Do I have and when will I pay it?
- What percent of my existence Income goes to savings??
- What percent of my existence Revenue is invested??
- How many part of my income to spend on accommodation??
- What do I want to spend more and less?
- What are mine Beliefs in money??
Of course, knowing the answers to these questions and not adjusting will not bring you far. But understanding your own financial position is crucial to discovering what your next steps are.
“Rich people who are smart with money can tell you how many will have next month, next year and even five years from now,” Sethi wrote.
2. Having money -making systems
Do not rely on the will of the will to make smart money decisions. “The will is great … until your child throws a stretch, catch the flu or whole mood tanks, because last night’s episode” Bachelor “Sisa,” Sethi wrote.
Instead of Budget installation and binding to adhere to, try to put systems in place Automatically process your moneySaid Sethhi. Your savings, investments and account payments can be automated, so you don’t even have to think about things like you can afford a holiday this year.
You can do this by installing salaries for your 401 (K) or automatic bank transfers to your savings or brokerage accounts. In addition, you can set the money rules for yourself, such as deciding on a certain percentage of each Falling money It is invested and the rest can be used for fun.
“Wealthy people do not gamble their financial success on how to motivate themselves today,” Sethi wrote. “They build impermeable systems that automatically manage their money.”
3. Have a plan before you need
For better or worse, life is full of unexpected surprises. But what often separates rich people is that they have a plan for the future, Sethi said. They not only have Healthy Emergency FundBut they also understand well what their life looks like.
“Most people don’t know how much they should save or invest,” Sethi wrote. “They are just Hit an accidental number from the air and then feel guilty for the next 45 years. “
Discover exactly what you want to be able to be with your money, whether it has completely stopped working at a time when you are 60 years old or start your own business when you leave your 9-do 5.
“After you have decided that, you have to create a time lane and make a plan,” Sethi wrote. “Build a system so your back is never along the wall.”
4. Live on the principle of 80/20
“[Rich people] live by Principle 80/20: 80% of your results dates from 20% of your effort, “Sethi wrote. In the business environment, this can mean that 80% of profits come from 20% of customers.
But on a personal level, it means instead of taking care of three questions, such as whether you need to buy Latte or make coffee at home, focus on “$ 30,000 questions”, such as whether you can negotiate a lifting or significantly lower the cost of living space.
“These questions are worth tens of thousands of dollars, and yet we stay in the weed and play a little asking questions of $ 3,” Sithhi previously said CNBC make it.
5. Focus on the value of costs
Certainly, you could save some money by always going for The cheapest option. But a few dollars may not be worth the inferior product or experience.
“Wealthy people who are smart with money not only worry about the costs – they take care of the value,” Sethi wrote.
He gave an example of choosing to pay for a personal trainer, not trying to learn through free resources like YouTube videos. “By paying someone, I saved myself endless frustration – and gained something far more precious: time,” he wrote.
Sethi emphasized that this rule should be applied to things that are most important to you. Decide to invest in several key areas, not to spray yourself on things that are not so important to you.
“The point of money is not to keep it,” he wrote. “The point of money is to use it to solve the problem and enjoy your life.”
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