Wealth Is A Habit

Few days ago, I wrote about Success Is A Habit. Over the weekend, I had an AHA. Since I wrote about Success Is A Habit, maybe I can also write about Wealth Is A Habit.

The rich has wealthy habit, the poor has poor man’s habit. The rich doesn’t become wealthy overnight. They simply follow the wealthy habit closely over a long period of time. This goes the same for the poor. The poor don’t become poor overnight, they simple follow the poor man’s habit over and over again.

The good news is the poor can turn into the rich just by changing their habits. All it takes is a little bit of discipline. Is it that simple? If it’s that simple, why aren’t there too many rich people around?

Reason is because though it is simple, most are unwilling to change or some do not have that discipline to follow the wealthy habit strictly. My question is are you willing to do whatever it takes to be rich? Good thing is you are not require to do whatever it takes, you just need some discipline.

So what gave me the right to tell you this? How would I know that by a small change of your lifestyle you can be rich? Because I was there, holding on to a poor man’s habit for 27 years of my life. Up until then, I was broke with no savings at all. I spent every single cents I have every month.

At the age of 27, I found out something is very very wrong. I started seeking for answers. I wanted to be rich, and I learn about the wealthy habits from wealthy people. After 5 years of following strictly to the wealthy habit, I can say that I am pretty comfortable now.

How are some of the poor man’s habit that keeps you poor?

Paying everyone else first before paying yourself. What this means is when your income arrives, you pay your bills first, go shopping first, the left over is your savings. This is call the “Others first” mentality. Now you have worked hard for money, finally when money comes, you choose to give it to others first and yourself last. Are you ripping yourself off.?

Yes, pay yourself first. You probably heard it elsewhere, somewhere. Now if you are hearing it again simply because it works. It works for me and many others.

Start by opening a new account, call it the Financial Freedom Account (FFA). Do not get any ATM card for this account, make sure you can’t withdraw money from this account easily.

FFA is only use for investment purpose, never ever ever use it for any other purposes, not even for emergency.

From now onwards, transfer at least 10% of your income monthly or weekly to your FFA. Once your income comes in, transfer at least 10% to your FFA right away. DO NOT WAIT! When you wait a little longer, your bills will come. Then your mind will tell you to pay others first. Be discipline, the moment you got your income, take 10% out, put into your FFA.

You might asked, “but every month I have nothing left, how can I save 10%?” If you are facing this challenges, you are OVERSPENDING! Cut, cut, cut your expenses. Did you drink Starbucks coffee? Cut that and you will save $6 - $8 daily. Did you order a desert after your main course? You do not need any desert for extra energy. Cut that. By doing these, you will find yourself having an extra $100 - $200 more monthly.

Start from today, just pay yourself first, the rest will take care of itself. You will be amaze that you can actually live by 90% of your income.

Another rule to remember, don’t find out how much you have in your FFA account for a year. Just put at least 10% into it, but don’t find out how much you have in there. I did this, and found out I could save so much a year later.

When I realized I can actually save so much, I increased the percentage. Because I wanted to grow the FFA in a faster rate. I wanted to achieve financial freedom much much faster. Right now, I am already using my FFA to invest giving me passive income.

After following strictly to this habit for 5 years, I can say I’m pretty comfortable right now. I’m out of that struggle. I’m enjoying the some of the fruits right now.

There are a few more wealthy habits that I followed closely, I will share in the future posting. For now just focus on paying yourself first.