by | Oct 17, 2020 | Mindset, Real Estate Tips | 0 comments

Successful, wealthy people do not just suddenly become rich and successful – they make changes to ensure their success.

Self-made millionaire Steve Siebold says that building wealth is a learnable skill. If you work at it, you can improve. “Like most things in life, becoming good at attracting money is no different than becoming good at anything else, be it being a sub-par golfer, losing weight or mastering a second language,” he writes in “How Rich People Think.”

The path to becoming rich is filled with a lot of setbacks and hard work if you want to get to a place where you can be financially free.

Long before most wealthy people become wealthy, they make a habit of living below their means. 

The following is a list of 5 spending habits and 5 life habits I’ve uncovered that you MUST adhere to if you want to achieve financial independence. (FYI: Net income is the after tax amount)

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5 Spending Habits To Follow

1. Don’t charge ordinary living expenses on a credit card

If you are unable to pay for your ordinary living expenses from your bank account and must resort to the use of a credit card to meet your monthly living expenses, you are, by definition, living above your means. This often occurs because of spontaneous spending. This time of spending is never a good idea. You need to take the emotion out of your spending habits.
Maintaining a spending budget for various categories and getting into the habit of writing down everything you spend will keep you on the right track.

2. Do not spend more than 25% of your net income on your home.

Housing costs include rent, mortgage, real estate taxes, utilities, insurance, repairs, and maintenance.

3. Do not spend more than 15% of your net income on groceries.

This is essential groceries but does not include fast food.

4. Do not spend more than 10% of your net income on entertainment/gifts

This category includes bars, restaurants, fast food purchases, movies, music, books, gifts, apps etc.

5. Do not spend more than 5% of your net income on vacations.

5 Life Habits To Avoid.

1. STOP saying “Yes” too often.

Entrepreneurs have a habit of saying yes to every opportunity that comes their way because saying yes to new ideas and opportunities can be exciting—but it can also be counterproductive. When you say yes to everything, you tend to lose focus. You must not stretch yourself too thin…which is why you need to learn to start saying no, even when it’s something that interests you.

2. STOP playing the ‘Blame Game’.

It is important that you understand that you must own everything in your life! When something bad happens – unless it is some crazy act of the universe – you need to own it. Thinking it’s always someone else’s fault will not see you succeed in getting rich. It’s not this person’s fault, it’s not that person’s fault – it’s on you. Remember when you’re pointing your finger at someone else, one finger pointing out, three fingers are pointing back at you.

Be Proactive is about taking responsibility for your life. Proactive people recognize that they are “response-able.”  Your success is yours. But your failures are yours as well.

As Gandhi said, “You must be the change you want to see in the world.

If you have a victim mentality, you need to get rid of it immediately. It’s NOT serving you. You are NOT the victim, and you need to stop blaming others. In fact, this is the basis for Stephen Covey’s Book The 7 Habits of Highly Effective People. In his book, the very first habit he recommends that people develop if they want to lead a fruitful life is to take control and accept responsibility for what happens in their lives. 

3. Overcome The Need for Instant Gratification.

Instant gratification means that you can’t wait very long for a reward, if you put in work today, you expect results today.

Life doesn’t work like that, the closest thing that does is a job, but a standard job won’t build your wealth for you. When you put your work into something make sure it’s being focused on an asset that can provide you a source of income for years, even without you touching it.

Get used to waiting for a payoff…learn to delay the gratification and you find the long term rewards are far greater.

 4. STOP Asking for Things for FREE.

How many times have you tried to find something for the cheapest possible price, only to find out that the product isn’t any good?

That $5 shirt you just bought will only last for a month. Those $15 shoes will only last you half a year. That cheap coach- mentor didn’t actually help you do anything.

If there’s one thing I’ve learned over the years, it’s the free and cheap almost never solves my problem. If anything, it usually either prolongs my problems or makes it worse. When you go to the shops, you don’t ask for clothes for free. The same goes with services, online products and anything else for your business.

Free or cheap generally doesn’t work out. 

If you want something of value, you need to be willing to pay for it.

5. Rid Yourself of a Negative Mindset

Having a negative mindset can be the most damaging thing to you when building your wealth . Negative thinking will prevent the smartest person from becoming rich. If you are stuck thinking that you are not smart enough, not good enough, or just not worthy, then you will probably never be rich.

The reason for this is that nobody is ever going to want your success more than you are. If you have a voice in your head that’s telling you that you can’t do it, then it’ll be right.

Avoid a negative mindset by thinking in the long term and celebrating your little victories along the way.

Some people believe that they will never be rich, and if you believe that, your self-fulfilling prophecy will probably come true. You have to believe that you want to be rich, and that you can be, in order to succeed. Some people feel that because their parents were poor or they have no college education, they can never be rich. However, some of the most successful people ‘dropped out’, including Bill Gates, Steve Jobs, and Frank Lloyd Wright.