Being financially successful means different things to different people and the path to get there will be just as varied. However, there are key habits that financially successful people share in common which any of us can apply to achieve our own success. So what are the common habits of financially successful people?
They’re financially educated
Being able to achieve financial success requires an understanding of finance in general and the options available to you. A financial education doesn’t need to come in the form of a tertiary qualification though. It can be as simple as seeking out the information you need from reliable sources online, in books, through seminars and a variety of other resources available.
When you take the time to understand financial markets, products and options available, you put yourself in a far better position to achieve your financial goals, make the right decisions and avoid mistakes.
They seek professional advice
While educating yourself about finance can go a long way, successful people also seek professional advice to help them achieve their goals. Just like you go to a doctor when you’re sick, or a mechanic when you have car troubles, there are many financial professionals such as financial planners, investment advisers and insurance brokers who have the knowledge and experience to help you make the right financial decisions.
They set goals
Financial success doesn’t come from luck or just magically happen – it starts with deciding what you want to achieve and working towards it. Like most things in life, to be successful you need to set goals so you know what you are working towards and can measure your success against them. Financially successful people set both short term and long term goals and constantly review the progress they are making.
They have a plan
Just setting a goal, such as I will save $x by x date isn’t enough. You need to have a plan to get there. Not only to demonstrate that the goal is achievable, but to keep you on track to achieve it. When tempting things come up to spend money on, if you have a plan that you have committed to following, you are far less likely to go off course. Having a plan that sets out how you are going to achieve your goals – and most importantly sticking to the plan – is essential to financial success.
They live within their means
Financially successful people live within their means by spending less than they earn and minimising their expenses. When their earnings increase they don’t un-necessarily increase their expenses either; instead the extra money goes towards bettering their financial position. They also don’t try to keep up with Jones’ – that is, they stay focussed on their own financial goals and don’t waste money or go into debt to have what others have.
They learn from their mistakes
Making mistakes with money is something that all of us will experience at one time or another. Things like getting into un-necessary debt, making a bad investment or not saving early enough are quite common and can put a damper on achieving financial success. However, financially successful people accept that mistakes do happen, and instead of dwelling on their mistakes they learn from them and move forward.
They have the right mindset
Achieving financial success isn’t always smooth sailing, but those who do reach their goals keep a positive mindset along the way and keep their eye on the prize. When mistakes or setbacks happen, they don’t get discouraged; instead they continue with their plan or adjust a plan that isn’t working until they get to where they want to be.
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