5 Habits of People with Money… They All Do This!

BY: - 26 Jun '17 | Money

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There are many many ways that people with money make the money, from starting their own business, to real-estate investing, to a having a highly successful career, or to investing in stocks. However, no matter how they make the money, the people with money have these 5 basic habits in common.

1. Create a budget

“A budget is telling your money where to go instead of wondering where it went.” – Dave Ramsey

It sounds simple, but a budget is your financial blueprint for success. While you may associate a budget with sacrifice and deprivation, a budget actually compels you to say NO to those things that provide you with little value, and allows you to say YES to what’s really important. It helps you live within your means, avoid debt, and invest in your financial future. By embracing a budget early in life, you’ll create a path to a financially lucrative future.

Don’t know how to create a budget? Consider the 50-30-20 budget plan. Fifty percent of your take home pay should cover necessities like food, shelter, groceries, health insurance and transportation. Thirty percent should be directed toward your “wants.” These are things that are nice to have but not absolutely essential like a smart phone, travel and dining out. Finally, twenty percent should be dedicated to paying off debts, building savings, and investing.

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2. Embrace failure.

“If there is no struggle there is no progress.” – Frederick Douglass

Success in life rarely follows a straight path. Rather it is a series of challenges with associated set-backs and advancements. Don’t be afraid to embrace challenges because of your fear of failure. Instead, be fearless in the face of challenge. Refuse to play it safe. Life doesn’t reward wallflowers.

As babies we never let the fear of falling keep us from learning to walk. If we had, we’d still be on all fours. So don’t shrink away from the new job, assignment or entrepreneurial venture for fear of failure.

Be fearless in the face of challenge. Refuse to play it safe. Life doesn’t reward wallflowers.

You will not succeed in all of your endeavors. But your failures will be just as important as your successes. In fact, plan to fail. Embrace and learn from your failures because they are stepping stones to achievement.

Walt Disney was fired from one of his first animation jobs because his editor thought that he lacked imagination. Walt went on to create Disney, one of the world’s most successful animation and movie studios.

Oprah Winfrey was removed from her first TV anchor job at a Baltimore television station. She went on later to create her own TV network, becoming one of the richest women in the world.

Bill Gates and Paul Allen’s first business venture, Traf-O-Data was a flop, but the experience gained from their failure was crucial in the creation of Microsoft, the company that would make them both billionaires. In a 2011 Newsweek interview Paul Allen explained, “… I have made my share of business mistakes, but Traf-O-Data remains my favorite mistake because it confirmed to me that every failure contains the seeds of your next success. ”

3. Pay yourself first.

“A part of all you earn is yours to keep, and if you cannot save money, the seeds of greatness are not in you” – W. Clement Stone

Before the student loans, rent, or utility bills are paid, the very first person you must pay is yourself. Set aside a small portion of your income to save or invest. A great place to start is with your employer’s 401k or 403b plan.

Many employers will match your contribution up to a certain percentage, automatically doubling your investment. Financial freedom is within reach if you just start saving and investing early enough because the power of compound interest snowballs small investments into sizable nest eggs over time. Learn to pay yourself first and you’ll eventually enjoy financial freedom that makes others envious.

4. Read your way to riches.

The rich have large libraries, while the poor and middle class have large televisions. If you want to earn more you have to read more.

Billionaire Mark Cuban, in his book How to Win at the Sport of Business, credits much of his success to reading, while Barrack Obama states that reading books played an indispensable role in his presidency.

African-American households watch more than seven hours of television per day. But, according to Dennis Kimbro, author of The Wealth Choice: Success Secrets of Black Millionaires, African-American millionaires read nearly two books per month.

Self-development guru Brian Tracey, further emphasizes the importance of reading. According to Tracy, “If you read only one book per month, that will put you into the top 1% of income earners in our society. But if you read one book per week, 50 books per year, that will make you one of the best educated, smartest, most capable and highest paid people in your field. Regular reading will transform your life completely.

Simply put, if you want to go far in life, turn off the television and pick up a book.

5. Surround yourself with like minded people.

“Try to never be the smartest person in the room. And if you are, I suggest you invite smarter people, or find a different room.” – Michael Dell, Entrepreneur and founder of Dell Computers

It is often said that you are the average of the five people you hang around the most. Spend the majority of your time around people with little drive and ambition, and you too will tend to become lazy and uninspired.

That is why it is crucial to spend time with those who want more out of life. Surround yourself with people that encourage you instead of criticize your every idea or disparage your every dream. Find those that inspire you to become a smarter and more successful version of yourself.

BMWK, how many of these habits are you doing right now?

About the author

Alonzo Peters wrote 298 articles on this blog.

Alonzo Peters is founder of MochaMoney.com, a personal finance website dedicated to helping Black America achieve financial independence.

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Pay Yourself First in These Areas to Achieve the Success You Crave

BY: - 5 Jul '17 | Money

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Pay yourself first. It’s advice advocated by David Bach and a long line of financial gurus. Financially, this refers to setting aside a small portion of your income to fund your financial priorities like savings, investing, and paying off debt.

But paying yourself first applies to the rest of life as well. In so many ways, we take care of everyone and everything else before attending to our own needs. This sounds noble at first but it quickly leaves us tired and stressed. Before we know it, we are mere shells of our former selves.

You have to take care of yourself before you can take care of anyone else.

Consider, for instance, that the first thing many of us do when we wake up in the morning is answer emails, plan our work schedules, or get the kids ready for school. Our day starts off frantically taking care of the needs of others and usually fails to get any less hectic. What if we could pay ourselves first by reclaiming the morning for ourselves?

  • How often do you find yourself providing emotional support for your best friend, your aging parents, or a relative going through time times?
  • While you’re playing Iyanla Vanzant, who or what is refilling your emotional tank?
  • Who’s addressing your emotional needs?

Did you know Americans are among the world’s most over-worked people? Yet, the average US worker last year used only about one half of their vacation days. We work our fingers to the bone for our employers but refuse to pay ourselves first with our proper vacation time.

I urge you to start putting yourself first. Yes, it may sound selfish. But when you pay yourself first, you’ll ultimately find yourself in a better position to help those around you.

First in Your Finances

The first check you write every month should be to yourself. Too often we fall into the trap of paying everyone else, then using the left-over scraps to fund our financial priorities. You are the most important person in your financial life. Before you do anything else with your paycheck – pay the rent, buy the groceries, or send in the utility payment – set aside an amount to fund your financial goals. Whether you put money into a retirement account, emergency fund, or your 401K plan, you must pay yourself first.

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First in Your Time

Let’s face it. We place great importance on money, but time is actually our most valuable asset. Lost time can never be replaced, but our entire day is filled with giving everyone else our time and attention. Treat your time as the valuable commodity it is. Start paying yourself first by spending quality time on your goals.

Claim the first one or two hours after you wake up as your own, even if it means going to bed earlier. Imagine what you could accomplish in the first tranquil hours of the morning before the craziness of life comes crashing in? Finish the book you’ve always dreamed of writing. Start that side-hustle or work on the new business you’re always talking about. Use your time for you first.

First in Your Emotional Energy

Celebrate all the emotional energy and support you give to your friends and loved ones. That’s the great part of being a human being. But don’t be so worried about attending to everyone else’s needs that you forget your own. Make sure your emotional gas tank is full as well.

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Find something that rejuvenates your spirit. It could be prayer, reading the Bible, yoga, exercising, engaging in your favorite hobby, or spending quality time with your kids or spouse. Whatever it is that recharges your emotional battery, pay yourself first by scheduling time for it, and then stick to the schedule as if your life depends on it.

First in Your Vacations

We all need time off. Vacation time, even if it is just spent at home with the family, sharpens your mental focus, making you more prepared to do your job. Vacations are also essential for your health. According to a Framingham Heart Study, for instance, women who took more vacations were less likely to have heart attacks than those who took fewer vacations. Most of us put forth an incredible amount of effort on our jobs. It’s time to pay ourselves first by taking the vacation time that we have rightly earned and deserve.

On an airplane, the flight attendants always remind you that in case of an emergency, when the oxygen masks fall from the ceiling, you’re to first place the oxygen mask on yourself before helping anyone else. You have to take care of yourself before you can take care of anyone else. True, it may sound selfish, but when you pay yourself first, whether it be with your time, money, or emotional energy, you’re able to give the rest of the world your very best.

BMWK, how do you pay yourself first?

About the author

Alonzo Peters wrote 298 articles on this blog.

Alonzo Peters is founder of MochaMoney.com, a personal finance website dedicated to helping Black America achieve financial independence.

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