habits that separate

 What are some habits that separate the rich from the poor?

I spent years studying the difference between the habits of our country’s rich and poor, questioning hundreds of individuals. On the rich side, these were people with annual gross income north of $160,000 and net liquid assets of $3.2 million or more. I defined the lesser-off as those with gross income of $35,000 or less and no more than $5,000 in liquid assets. When I was done, I analysed the results of my research and boiled down the responses to create a picture of what allows the wealthy to prosper where others do not. My ensuing book became a sort of instruction manual for how to become wealthy.

Some of the differences between rich and poor are obvious, while others are a little more surprising

Here are the most important Habits that seperates the Rich vs Poor.

1. Live within your means

Wealthy people avoid overspending by paying their future selves first. They save 20% of their net income and live on the remaining 80%. Among those who are struggling financially, almost all are living above their means. They spend more than they earn, and their debt is overwhelming them. If you want to end your financial struggles, you need to make a habit of saving and budgeting what you spend. Here are some sensible ways to budget your monthly net pay.

Spend no more than 25 % on housing, no matter if you own or rent. Spend no more than 15 % on food.

Limit entertainment – bars. movies, eating out, whatever—to no more than 10 % of your spending. Vacations should account for no more than 5 % of your annual net pay.

Spend no more than 5 % on auto loans, and never lease. Ninety-four % of the wealthy buy instead of leasing. They keep their cars until the wheels fall off, taking great care along the way so that they save money in the long run.

Stay away from accumulating credit card debt. If you are doing this, it’s a clear sign that you need to cut back somewhere.

Think of savings and investments as two completely different things. You should never lose money on your savings. Try to stash six months of living expenses in an emergency fund in case you lose your job or your business goes belly-up.

Contribute as much as you can afford to a retirement plan. If you work for a company that matches your contributions up to a certain %age, great. Always take that free money when you can get it.

2. Don’t gamble

Talk about a sucker. Every week, 77 % of those who struggle financially play the lottery. Hardly anyone who is wealthy plays the numbers. Wealthy people do not rely on random good luck for their wealth. They create their own good luck. If you still want to bet after knowing the risk, use money from your entertainment budget.

3. Read every day

Reading information that will increase your knowledge about your business or career will make you more valuable to colleagues, customers or clients. Among wealthy people, 88 percent read 30 minutes or more every day. Just as important, they make good use of their reading time

63% Listen to audio-books during their commute

79% read educational career-related material.

55% read for personal development.

58% read biographies of successful people.

94% read current events. 5l% read about history.

11%—only 11% — read purely for entertainment purposes

The reason successful people read is to improve themselves. This separates them from the competition. By increasing their knowledge, they are able to see more opportunities, which translate into more money.

4. Forget the boob rube and spend less time surfing the Internet

How much of your valuable time do you lose parked in front of a screen? Two-thirds of wealthy people watch less than an hour of tv a day and almost that many — 62%—spend less than an hour a day on the Internet unless it is job-related. Instead, these successful people use their free time engaged in personal development, networking, volunteering, working side jobs or side businesses, or pursuing some goal that will lead to rewards down the road. But 77% of those struggling financially spend an hour or more a day watching TV, and 74% spend an hour or more a day using the Internet recreationally.

5. Control your emotions.

Not every thought needs to come out of your mouth. Not every emotion needs to be expressed. When you say whatever is on your mind, you risk hurting others. Loose lips are a habit for 69% of those who struggle financially. Conversely, 94% of wealthy people filter their emotions. They understand that letting emotions control them can destroy relationships at work and at home. Wait to say what’s on your mind until you’re calm and have had time to look at the situation objectively.

6. Set goals, not wishes.

You cannot control the outcome of a wish, but you can control the outcome of a goal. Every year, 70 % of the wealthy pursue at least one major goal. Only 3 % of those struggling to make ends meet do this.

Here are some simplified ways of setting goals and not wishes:

If your annual income is $100,000, invest or save at least 10% - that's $10,000 per year for an emergency fund, retirement, or other investments.

To retire with $3 million or a minimum of $1 million, investing just $400/month with retirement platform Atomholdings.net with an average ROI of 7% - 10% could have you reach over $3 million at 65 assuming you kick started your investment at 25 years.

For a $500,000 mortgage, create a plan to pay it off in 15-20 years by making additional $1,000+ monthly principal payments to save on interest.

Aim to build 6 months' living expenses in savings within 3 years by setting a monthly/quarterly savings target.

For a business goal, develop a detailed plan with milestones, financing, and projected financials, rather than a generic "be an entrepreneur" wish.

Set specific learning goals with deadlines and progress metrics, rather than vague personal development wishes.

The key is translating wishes into concrete, measurable goals with timelines to take control of the outcomes.

7. Avoid Procrastination.

Successful people understand that procrastination impairs quality; creates dissatisfied employers, customers of clients; and damages other nonbusiness relationships. Here are five strategies that will help you avoid procrastination:

Create daily ‘to do’ lists – These are your daily goals. You want to complete 70 % or more of your ‘to do’ items every day.

Have a ‘daily five’ – These activities represent the crucial things that will help you get closer to realizing some major purpose or goal.

Set and communicate artificial deadlines – There’s nothing wrong with finishing early.

Have accountability partners – These are people you team with to pursue a big goal. Communicate with them at least every week, and make sure they hold your feet to the fire.

Say a ‘do it now’ affirmation – This is a self-nagging technique. Repeat the words “do it now” over and over again until you begin a task or project.

8. Don’t give up.

Those who are successful in life have three things in common: focus, persistence and patience. They simply do not quit their big goals. Those who struggle financially stop short.

9. Talk less and listen more.

A 5-to-1 ratio is about right. You should listen to others five minutes for every one minute that you speak. Wealthy people are good communicators because they are good listeners. They understand that you can learn and educate yourself only by listening to what other people have to say. The more you learn about your relationships, the more you can help them.

10. Get a Mentor.

Among the wealthy, 93 % who had a mentor attributed their success to that person. Mentors regularly and actively participate in your growth by teaching you what to do and what not to do. Finding such a teacher is one of the best and least painful ways to become rich. If you know your goals, find someone who has already achieved them. You’ll be amazed by how many people want to lend a helping hand.

Due to how educative this article has been, it has been featured in over hundred thousand people's Quora Digest!

The wealthy have access to informations that enable them grow wealth. Remember, even with small pocket change anyone can kickstart their investment journey.

Focus on point 1, 3, 6 and 7.

Don’t control your emotions, control your actions particularly your mouth. Surfing the internet is ok, I spend 8 hours a day surfing the internet just like reading books and learn stuff, it is much more efficient than reading from books and more tidy.

You make a fair point. Maintaining self-awareness and focus on what you can control is admirable.

I love Germany, German are so rational and orderly.

Start a business fail! Start a business, Fail! Start a business, FAIL, Or, just go to college and get a Tech degree and Make Money! You left Out education! Most successful people have a degree, you can't make it on minimum wage! And don't have kids, those things are expensive!

You do make a valid point. However, the key is finding the path that best suits your personal goals, and persisting through setbacks. I'd recommend the personal finance classic "Rich Dad, Poor Dad" by Robert Kiyosaki, which emphasizes that education alone doesn't determine financial success.

So true

Wow I’m very excited to read about this

Cheers

●Terrific advice with a well thought out plan. Pay yourself first every single month is key.

●Understand the tax laws thoroughly. Hire the proper professionals to assist you. But know enough to help catch mistakes. Even professionals are human. Again…constantly read digest and apply the tax codes to your personal situations.

●If you are not making mistakes you are not learning or trying hard enough with almost any endeavour you are under taking.

●Watch your vices. Let me repeat watch your vices. HAWKEYE YOUR WEAKNESS AND TEMPTATIONS. 

●Love your friends and family and they will love you. Watch them carefully though. After awhile you will know who is who.

●You can let others make your bed, or you can decide to make your own.

●Stay flexible the best you can. It is so true the old saying. “ Life happens to you as you go about living”.

Thank you so much for this wonderful summary Ed 🤝

Superb advice

very apt and practical

I am voluntary retirement I want small business ideas in India please

Fantastic I'm glad you're considering starting a small business in India during your retirement. Important: Any business you intend to startup SHOULD/MUST align with your personal goals because this will keep you committed. Some ideas to consider include:

Consulting or freelance services,

Food and beverage business - Starting a café, catering service, or specialty food manufacturing unit could be a great way to tap into the growing demand for authentic regional cuisine in India,

Educational or training services - Sharing your knowledge through workshops, classes, or coaching sessions could be a rewarding venture.

I'd be happy to discuss these ideas further and provide more detailed guidance if you'd like. Just let me know if you have any other questions! I'm here to help.