Many people have a poor perception of money and personal finance. This is especially true among the younger generations, who expect to live a “boom or bust” financial lifestyle says Paul Haarman. Want to know how financially successful people think differently about their finances?
Here are 6 common traits I’ve found in many rich people that you might be able to apply within your own life:
1. A Poor Perception of Money –
In general, there is a prevailing belief system that surrounds wealth and money that says that these things only come about through greed, corruption or by blind luck. Though this may be true for some, overall it’s a false narrative. There are plenty of wealthy individuals out there who were born into riches and have had their entire life to become educated about how money works, but there are also plenty of self-made millionaires out there who started with absolutely no financial means. The truth is that a certain level of education regarding personal finance can allow anyone to amass significant wealth, regardless of their upbringing or current income status, as long as they learn some basic principles on how money works.
2. A Shift in Perception –
People who grow up poor often maintain an “instant gratification” mentality when it comes to spending money. They believe that the only path to greater things involves taking shortcuts and finding loopholes which allows them access to luxuries beyond what’s considered normal by average standards says Paul Haarman. We often see this behavior in people who want a new car immediately even though they don’t have the money to pay for it, so they seek out high interest financing options in order to obtain their consumer good.
Rather than work hard and save up the necessary cash needed to purchase what they want, some people will allow themselves to be held back by their own lack of faith. It’s this type of “get rich quick” mentality that can lead to financial trouble down the line when individuals realize that if you want something bad enough you just need to work for it rather than look for ways around personal responsibility.
3. A Desire to Be Financially Independent –
Many wealthy people didn’t become wealthy overnight. In fact, many self-made millionaires went through a series of failures before finally hitting upon a formula for success. Rather than spending time wishing that they had the money to be comfortable, many wealthy people choose to build their own businesses or hold down several jobs/contracts in order to produce an income stream large enough to support themselves without having the need to rely on anybody else. The desire of becoming financially independent is often what propels individuals towards making better choices in terms of how they spend their time and money.
4. A Constant Pursuit to Better Themselves –
Many successful individuals are always looking for ways to improve themselves both mentally and physically beyond what’s considered normal by average standards. They don’t just seek out self-improvement when it comes to building their net worth but also when it comes to general health and wellness. These individuals often focus a lot of their time and energy on learning new skills, developing a mental awareness of how to use their given talents in order to better them both personally and financially.
5. A Desire to Give Back –
Many wealthy people know that the more you give away, the more good fortune will find its way back to you explains Paul Haarman. They understand that helping others who are less fortunate than themselves can lead them closer to ultimate financial success. Because it’s human nature to want to reciprocate when someone does something nice for us. This is not just some ‘feel good’ theory that works only in the movies. Rather it’s an alternative approach towards money. Which rich people choose to adopt in their pursuit of building immense wealth. When you give away your time, talent, or treasure with no expectation of receiving anything in return it allows the universe to repay you in ways beyond what you could have ever hoped for.
6. A Maintain Mentality –
Self-made millionaires are often very frugal when it comes to spending money. Rather than throwing away their hard earned cash on frivolous items they choose to spend their resources on experiences. That can help them grow both personally and spiritually. Wealthy individuals understand that they must work constantly toward achieving greater levels of success. Because the moment they stop working. They begin to lose all of the wealth they’ve worked so hard to build up over time. They rarely take extended vacations unless their business is completely secure. Rather they continue to work hard behind the scenes. So they can spend their free time enjoying life with minimal stress.
If you desire to live a life of luxury and opulence then you must first start with a mindset. That seeks out ways on how you can build your own personal wealth through alternative methods says Paul Haarman. The next step is about building those ‘wealth muscles’ by investing your time into new experiences, skills, and relationships. That will help you reach the level of success. That will allow for such luxuries as some of those enjoyed by the wealthiest individuals throughout history.