Blog #641 Habits of Rich People – Part I

!6 Rich Habits (part I)

So, Success.com had this article about 16 rich habits – sounds like something I’ll like to look at!!!  And, I think all of them have merit.

So, here we go!!!

-1 Live within your means

The article says “Wealthy people avoid overspending by paying their future selves first. They save 20 percent of their net income and live on the remaining 80 percent.”

Then they give these suggestions:

  • “Spend no more than 25 percent on housing, no matter if you own or rent.
  • Spend no more than 15 percent on food.
  • Limit entertainment—bars, movies, miniature golf, whatever—to no more than 10  percent of your spending. Vacations should account for no more than 5 percent of your annual net pay.
  • Spend no more than 5 percent on auto loans, and never lease. Ninety-four percent of the wealthy buy instead of leasing. These folks 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 percentage, great. Always take that free money when you can get it.”

How about you with these ideas?  We try not to borrow (i.e. credit card, buying things on installment plans).  Our house is paid for. We do use our credit card for almost all purchases, but pay the total bill off each month.  

This doesn’t talk about ‘giving to God’ – but we do support our church and charities.  We do try to tithe (10%) to church and charities.

-2  Don’t Gamble

The lottery is a waste of time and money; casinos might be good for fun but don’t go there thinking you are going to walk out with great riches.  The odds are against you.

We have thought about buying a lottery ticket when the prize is in the millions “just for fun” – but I guess it becomes a ‘slippery slope’.  

-3 Read every day

Reading stimulates our brains.  Read, increase your knowledge!! Success people read to improve themselves, to understand our world (such as reading current events), to be stronger in your careers.  Many use audiobooks on their commutes. (And, if you are on the ‘frugal’ side as I am, most likely your library has free e-books and free audiobooks. You already have paid for them with your taxes!!)  (** see list at bottom)

-4 Forget the television (aka “boob tube”) and surfing the internet!!

The article states “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—63  percent—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 percent of those struggling financially spend an hour or more a day watching TV, and 74 percent spend an hour or more a day using the internet recreationally.”

I don’t watch much television, and I use the internet wisely (so I think), with some daily mental exercises (like spatial puzzles – like hex-flow-free; and daily set game).  I also use the internet for learning languages (German – currently; and Spanish – previously). And for finding material for this blog!!

We will definitely be spending a few days on this – see you tomorrow!!!

Bruce

(** list of things that rich people are reading: copied from the article **)

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 percent listen to audiobooks during their commute.
79 percent read educational career-related material.
55 percent read for personal development.
58 percent read biographies of successful people.
94 percent read current events.
51 percent read about history.
11 percent—only 11 percent—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.  **)

Posted by Bruce White

Leave a Reply