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5 Habits Of The Wealthy That Help Them Get Rich

Why do the rich keep getting richer? Most of the time, it’s not because of luck. It’s not because of the family they were born into. It’s not because they won the lottery. Wealthy people simply do things differently.

Brandon Turner

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It may not seem fair, but the fact is the ‘income gap’ is increasing and most financial experts only see this trend continuing with no end in sight.

In preparation for this column, I sat down with someone who knows far more wealthy people than I will likely ever meet: Jeff Rose. Rose is a certified financial planner, author and blogger at GoodFinancialCents.com, as well as a millionaire himself, who dedicates a good portion of his time to helping people become (and stay) wealthy.

I asked Rose why he thought the income gap was growing. He mentioned five primary things that wealthy people simply do differently than the rest of the world. Here are those five, in no particular order.

Related: 9 Things Rich People Do Differently Every Day

1. They take risks

Rose explains that the wealthiest people he works with routinely “throw spaghetti at the wall to see what sticks.” In other words, they try a lot of different things, knowing that a lot of it will fail.

They take those risks because they know that failure is just part of the process in discovering what will truly work to build more wealth. Furthermore, as Rose explains, the rejection of those ideas invigorates the wealthy into finding what will work, a stark contrast to most of the population that simply looks at failure as a road block.

2. They invest in themselves

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According to Rose, “wealthy people don’t look at the money spent on personal growth as an expense, but an investment.”

While many individuals conserve every penny equally, the wealthy understand that strategically investing in themselves will produce a far greater return than any stock, real-estate investment or business venture. Whether it’s purchasing a book, hiring a coach, joining a paid mastermind group or another source of paid self-improvement, the wealthy see this as an investment.

3. They associate with those they want to emulate

When the human body gets too hot, it produces sweat in an attempt to cool down. When it becomes too cold, it shivers to produce heat. In other words, the human body is constantly adapting to keep its temperature at the same comfortable spot. This automatic levelling is a biological process known as homeostasis and is found in numerous aspects of life.

From human biology to the temperature of the earth to a car’s cruise control, homeostasis is a fact of life that governs nearly every aspect of your existence. And, as the wealthy have discovered, homeostasis can also be a powerful way to build wealth.

As Rose stated bluntly to me, “If you want to be rich, hang around rich people.” Or as financial TV personality Dave Ramsey often says: “If there are four broke people in a room, you’ll be the fifth.”

Wealthy people have discovered that they can grow their wealth simply by associating with those who are even wealthier. Humans pick up the habits and strategies of those in their immediate surroundings, and the wealthy have learnt to use this homeostasis to their advantage.

Related: 5 Frugal Habits of the World’s Richest People

4. They have a dedicated morning ritual

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While most of the world is hitting the snooze button 14 times in a row each morning, the wealthy have already begun increasing their net worth.

“Most of the multi-millionaires I know have a dedicated routine, a ritual, that they do each and every morning,” Rose says.

This morning ritual could include exercise, affirmations, goal reviews, breakfast or whatever else helps them start their days with a bang. They start strong, accomplishing more before noon than most people accomplish in a week.

For those struggling to get started each morning on the right foot, Rose recommends two books:

In my own life, I’ve found this truth incredibly powerful. Since instituting a morning routine, I’ve quadrupled my income, written and published a bestselling real-estate investing book, lost 5 kgs, bought my dream house and deepened my relationship with my wife. Not bad for just a few minutes each morning of dedicated routine.

5. They review their goals consistently

Finally, according to Rose, the rich have clearly defined goals and continually review them to track their progress, make changes and develop strategies for meeting those goals. This process of immediate feedback allows the wealthy to make quick changes to their plans to keep the course in a rapidly-changing world.

While most of the human population gives little to no thought on their futures, the wealthy are reminded daily of where they are headed. Like a family taking a cross-country trip in their car, the rich have their road map spread out on the dashboard so they can navigate the fastest, easiest route to their destinations.

Related: Lessons From 7 People Who Got Rich and Famous on Social Media

Rose admits that the wealth gap is far more complicated than a simple ‘five-point article.’ However, he continually witnesses these five traits guiding the lives of those who are getting richer and has used them in his own life to create multiple businesses and build some serious wealth himself.

These five actions create a positive-feedback loop that will continue to make the rich richer, and there’s no sign of that ceasing. The good news is, however, these five actions are all things that anyone can put into practice today.

This article was originally posted here on Entrepreneur.com.

Brandon Turner is a real estate entrepreneur and the VP of Growth at BiggerPockets.com, one of the web’s largest real estate investing community. He is also the author of The Book on Investing in Real Estate with No (and Low) Money Down and several other books. Buying his first home at the age of 21, Turner quickly grew his real estate portfolio to over 40 units using a variety of creative finance methods. He and his wife Heather live in Grays Harbor, Wash.

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Self Development

9 Reliable Ways To Cultivate Creative Thinking

Some people are naturally creative. Everyone else can cultivate creativity.

John Rampton

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The benefits of creative thinking are enumerable. Having this skillset will enable you to tackle problems with unique perspectives, come up with special ideas and, overall, be a more effective performer.

One challenge to becoming more creative is the difficulty of quantifying creativity. It is much easier to learn and subsequently demonstrate skills in software engineering, for example. That being said, companies and people are drawn toward creative thinkers. The more that those around you listen to your opinion and the more frequently you propose unique ideas, the higher an indication of these skills. Therefore, over time, you can gauge progress based on how others respond to you and your work.

The other challenge, though, is that sometimes others will not recognise your creativity. They might shoot down an awesome idea because it sounds crazy unconventional. Understanding this and learning to navigate it will keep your confidence levels high so that you can continue to grow.

With these perspectives in mind around quantifying creativity, here are nine guaranteed ways that you can become a more creative thinker to better tackle your life and problems:

1. Read

People have chronicled years of their work or life experiences into books. Knowing more and having different perspectives will help you become more creative. You will be able to take others’ ideas, pieces of knowledge and individual experiences and apply them to your present situations. Reading is one of the best ways to pick up this knowledge and empathy.

It is easy to make excuses for not having enough time to read but if you make reading a priority, you will be able to find the time and undoubtedly become more creative.

Related: Creative Thinking 101

2. Pick up an art

creative-art-hobbyHaving some sort of artistic outlet in your life will dramatically help with creativity levels. Albert Einstein came up with many of his famous revelations while playing the violin.

In the book Originals, Adam Grant – a researcher and professor at Wharton – found that “Nobel Prize-winners are twice as likely to play a musical instrument, they’re seven times as likely to draw or paint, 12 times as likely to write fiction or poetry, and… 22 times as likely as their peers to perform as actors, dancers, or, yes, magicians.”

Whether it be an instrument, drawing, acting or anything else, finding an artistic outlet will fire different parts of your brain. Those spark serenity and a stillness that will make you a more creative person.

3. Surround yourself with a wider range of personalities

Empathy is a huge key to creativity. Most people surround themselves with others who are similar to them. While doing so is comfortable, it is not beneficial when working toward creativity.

There are others within your vicinity who have lived dramatically different lives. Meeting them, understanding their backgrounds and learning how they think will widen your perspective about the world. That will, in turn, increase the creative vigor you can take through life.

4. Spend more time in nature

nature-walkBeing outdoors also sparks creativity. Escaping from the stresses and routine of life, even for brief periods, can get your head out of a rut. Finding short times to be outside throughout your week will give you a chance to get away from all of the technology and noise in our daily lives. Plus, it is an excuse to go have fun and explore.

Related: Shift To Strategic Thinking Free Of Limits

5. Meditate

Mental stillness allows you to eliminate many of the thoughts that constantly ruminate in your head. When you are always thinking about a past or future event, for instance, it takes your mind away from tackling the current situation. Meditation is a great way to develop this stillness.

With a meditation practice you can learn to let your mind be entirely in the present situation. Doing so will allow you to exert more concentrated effort on the tasks at hand. You can pull in more knowledge from different parts of your brain. Consequently, you will be more creative in each moment.

6. Get enough sleep

Lack of sleep can kill creativity. Although we feel the urge to always be on the move, when we are tired, we are not able to use as much of our brain. Plus, exhaustion makes it harder to retain information upon learning it. Therefore, with less sleep, we learn less that we can apply to situations and we cannot perform as effectively on any given task. Making sleep a priority will help your creativity, without a doubt.

7. Exercise

exerciseFeeling healthy is a great way to have more confidence throughout our days. This confidence often leads to less worrying and more mental energy being exerted at the task at hand. Plus, while actually working out, people tend to be hyper-present. This might trigger an idea or a thought you had not considered before.

8. Do more of what you love

There is a correlation between happiness and creativity. The better that our spirits are, the higher functioning we act on a daily basis. Subsequently, a great way to increase happiness levels is to do what you love. This could be hobbies, spending time with loved ones or anything else.

Additionally, when doing what we love, we tend to be in a very present state. Some have called this state ‘flow.’ As mentioned above, being in a present state pays large dividends toward creativity. Not to mention that doing what you love might spark additional ideas and help you find new interests where you can be creative.

Related: 7 Creative Strategies For Marketing Your Start-up On A Tight Budget

9. Take more risks

Taking risks will boost creativity by giving you a larger set of life events. When you have experienced more things, you will be able to apply those memories and lessons to each new situation that you are in. While you can do more in life without taking risks, fear is often an inhibitor toward trying something new. Therefore, be open to taking more chances. By going out of your comfort zone and doing what others might be unwilling to do, you will develop a deeper breadth of memories and past experiences that you can apply to new problems.

This article was originally posted here on Entrepreneur.com.

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Self Development

3 Wonderfully Uncommon Reasons To Form Better Habits

As we race away into 2018, consider these very personal and fundamental bonuses to making and sticking to your resolutions.

Entrepreneur

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Eat healthier. Exercise more. Be more productive. Read faster. Be friendlier. Sleep better.

Welcome to the New Year, a time when people set resolutions to form better habits and lead better lives.

Understandably, a lot of the articles, videos and other resources about starting off the New Year focus on which habits are best and the steps you need to take to achieve them. They outline the goals, plans and actions we need to make our resolutions a reality.

If you’re looking for 10 tips on how to lose 100 pounds in 90 days, then this article isn’t for you. Instead, why not consider some of the underlying and lesser-talked about benefits of kicking bad habits and forming better ones this year.

1. Challenging your norms

Why is it that you sneak sweets and junk food so often? How come you’re always so tired in the morning? Why can’t you get your butt to the gym?

Related: 7 Motivational Habits That Drive Millionaires

If your answer for poor habits is “That’s just the way I am/the way things are” then you’re probably underestimating yourself. Stop. Think about your actions and why you’ve taken them perpetually over time. You might learn a lot.

Take personal finance advisor and entrepreneur Ramit Sethi for example. When he stopped to analyse himself and why he wasn’t going to the gym, he realised something simple that he’d never considered previously: His closet was in a different room, separate from his bedroom. Instead of getting up in the cold to put on clothes, it was easier to just stay in bed.

“Once I realised this, I folded my clothes and shoes the night before. When I woke up the next morning, I would roll over and see my gym clothes sitting on the floor. The result? My gym attendance soared by over 300%.”

Forming a new habit is your chance to examine your life — or at least one important aspect of it — and figure out why you’ve been making the decisions that lead to the habits you want or need to change.

2. Taking control

We don’t have to be the sum of randomised actions and results, based simply on moral and civil codes. It’s up to each one of us individually to take control of our actions and maximise the results.

It’s the same in business. There’s nothing you do without careful research and consideration in order to maximise productivity, profits, etc.

You’re your own boss. You control your thoughts and actions; these things aren’t up to chance. Having the ability to make significant changes to your life is empowering, so long as you seize the opportunity.

Take control. Be the entrepreneur of yourself, 100 percent.

Related: 7 Bad Workplace Habits Millennials Need To Stop Making

3. Achieving clearer self-awareness

Some people say it takes only 21 days to form a new habit. Others say that just isn’t true. However long it takes, habit formation is a personal journey; one that requires desire, motivation, dedication, perseverance and change.

Habit formation takes you out of your comfort zone, to a place of self-discovery. If you’re getting into shape, how far can you push yourself physically? If you’re trying to eat better, how much temptation can you withstand?

Figure out what was required to succeed or why it was that you failed. Either way, you can obtain a clearer sense of your personal limits and, hopefully, how to achieve your goals — and sustain them — within your constraints.

As Benjamin Franklin said, “Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones.” Not only to the world, but to yourself as well.

This article was originally posted here on Entrepreneur.com.

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Self Development

How To Build A Disruptive Attitude

What does it mean to navigate a disruptive world and succeed in a market – place that is changing faster than it’s ever changed before?

Nadine Todd

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What do you need to know to be a success? What resources and support do you need? How do you need to feel and think to be a success in a disrupted world?

According to Malcolm Gladwell, who spoke at the 2017 BCX Disrupt Summit, you need three key things to succeed in a disrupted world: Resources, knowledge and the right attitude.

The First step towards innovation and disruption is your mind. Your attitude.

For Gladwell, Malcolm McLean is the single biggest disruptor of the 20th century, in that he implemented containerised shipping. Without this fundamental shift in the way we ship cargo, the modern, connected world as we know it today would not exist.

Crucially, McLean did not invent containerised shipping, but no one had been able to make it work before a trucker from Ohio came along, and got irritated by how long he had to wait at the docks to offload his cargo (roughly 24 hours).

Related: How to Build Your Network Like a Super Connector

But McLean had an idea and he presented it at a conference of maritime shippers in Amsterdam. They laughed him off the stage. Normally, when we are treated with this type of derision, we get discouraged and give up. McLean didn’t do that. He possessed a fundamental trait that all entrepreneurs need: He didn’t require the approval of others to do what he believed was right. Entrepreneurs are open, creative, and see solutions to problems that others don’t; they are also — crucially — highly conscientious, which means they follow through on an idea in a detailed, disciplined way.

This is rare. You get creative people, and conscientious people, but it’s not easy to find both traits in the same person. Add to that the third trait of disagreeableness, in that they do not have to follow established norms, and you have a real game-changer.

McLean didn’t look at the problem as a shipper did. He came from an entirely new angle, and not only found a way to make containerised shipping possible, but affordable too.

Ikea is a similar example. In a nutshell, Ikea is furniture shipped flat from Poland. Ingvar Kamprad pursued outsourcing on an aggressive level, had an extraordinary amount of creativity in solving problems, and was very conscientious. Consider how difficult it would have been to build a world-class manufacturing plant in Poland in 1961. The country was a post-WW2 mess, in the grip of Soviet Russia, known for shoddy workmanship and actively hostile to free enterprise.

And then Kamprad waltzed in from Sweden and pulled off the impossible because of his single-minded grit and attention to detail. He is the epitome of conscientiousness and obsessiveness.

Now consider Steve Jobs.

By the 1970s, Xerox was the most important tech company in the world. They were the richest, most innovative and profitable company, and they invested in a state-of-the-art R&D centre and filled it with 100 of the most brilliant computer scientists from around the world, and told them to be brilliant.

And they were. As per Xerox’s request, they reinvented the office. They invented the laser printer, the world’s first word processing programme, interfaces — and the list continues.

And then a 23-year-old Steve Jobs visited the centre. At that stage, his company was making traditional kit computers out of a garage. He was blown away by what he saw at Xerox Park and all the incredible things they were doing — particularly when he was shown the mouse and interface the Xerox team had developed for personal computers. He immediately saw how icons and a mouse changed everything. This was the future of computing.

Related: 10 Innovators On What They Learned From Steve Jobs

Leading the charge

Here’s why Apple is the world’s biggest tech company four decades later, and Xerox is not: While the Xerox team understood they had changed computing forever, there was no urgency to be the first to market.

Jobs left that day, immediately told his team to stop what they were doing, because it would soon be obsolete anyway, and started working on a new product based on what Xerox had developed.

His team told him he was nuts — they’d spent millions on what they were doing. Jobs said it didn’t matter. It was obsolete. He didn’t have more resources. He didn’t have smarter guys. He didn’t even have a wiser and better vision.

But he was in a hurry. And he was able to execute on his vision.

If you can get your mindset right, you can gather the resources and knowledge that you need to be successful. Learn as much as you can. Be open to new ideas. And if something is soon going to be obsolete, walk away. Find the next big thing. Because you’re either being disrupted, or you’re the disruptor. Which would you like to be?

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