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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

library

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

morning-ritual

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

How To Control What You Can And Influence What You Can’t In Your Life

Every day you need to get up and face numerous challenges. Here’s how you can keep your head in the game — even when all you want to do is quit.

Erik Kruger

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On Monday you wake up ready to take on the world. You’re focused, determined and business is doing well. Tuesday feels like you’re invincible and things could not be going any better. Wednesday, your world collapses. You doubt your ability to deliver to your clients. You wonder whether you should still pursue the same business. You think that quitting at this stage is easier than dealing with the ups and downs of entrepreneurship. And you are dramatically reminded that entrepreneurship is hard.

Mix in human nature and it becomes borderline insanity to try and build a business. And yet, the reward is worth it. I therefore want to share three strategies that might help you cope with this tough but deeply rewarding pursuit.

Influence and control

Most of the things in business and life are out of our control. You cannot control how other people react to your service or product. You cannot control how your employees will show up. You cannot control how the market will react and how that will affect your business.

Related: How You Can Do Big Things

This makes it very important to control what you can and then influence the rest to the best of your ability.

So, what can you control? You can control your actions, reactions and perceptions of the challenges you face. Meaning essentially, that you can control yourself and your efforts.

Do this with excellence and you will automatically influence the people around you and the situations you find yourself in.

Override your moods

If we only did the hard work when we felt like it, we would hardly get anything done. Our moods fluctuate like the tides of the ocean. Not because we are temperamental but because the external world has a profound impact on us.

When you wake up to news that the economy is in recession, it has the potential to plant seeds of doubt in your mind. When you receive an email from a disgruntled customer complaining about your service, it has the potential to ruin your day.

The fact is that you can receive a hundred testimonials singing your praise, but you will obsess and become despondent over that one negative comment.

This means that we have to move beyond our emotions. Sure, they are important in the decision-making process and for fostering meaningful relationships. But you cannot allow them to dictate when you will do work.

In other words, work hard, irrespective of your moods, especially on the days when you don’t feel like it.

Create a calibration practice

One of the best ways to deal with this rollercoaster effect is to create a daily calibration practice. I am a big fan of any action taken on a daily basis. Not only because of the accumulation effect that occurs over time, but also because it keeps you focused.

So, what does a daily calibration practice look like?

It differs for everyone. It could range from meditation to a vision board to journaling to listening to a specific playlist of songs. My suggestion is that you give journaling a go.

Because it’s sometimes difficult to start a new calibration practice, I have included my journaling template for you.

It’s called ‘J1G’ (pronounced as jig). I use Evernote or a notebook from HumanWrites for journaling purposes.

J: Journal

For the first few minutes, simply allow your hand to run across the paper. The idea is for you to dump as many of your thoughts onto the paper as possible.

Some questions you can answer in this section are:

  • What am I currently excited about?
  • What am I currently worried about?
  • Where am I currently winning?
  • What can I learn from what happened yesterday?

1: The one thing that you want to get done today

In this time, I usually have a look at my to-do list and decide which one action I want to get done today. Write it down and then expand on why it is the most important action. How will it move you or your business forward?

Related: Better Thinking For A Better World

G: Gratitude

In the last section, you simply write down three things that you are grateful for. Trust me, this is an important daily practice, but even more so on the days when you feel as if life is beating you down.

When you focus on the things that you are grateful for, you crowd out fear and shift your state of mind to a more positive and productive one.

The punch line

If you can stick to the three ideas I outlined above, I guarantee you will develop more resilience and perseverance. You are an entrepreneur because you chose to be one. Do not allow life to impose its will on you. I have no doubt that you will be better off because of all the challenges you face. Not in spite of them.

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Self Development

Practice This Important Skill To Get Your Way Every Day

Listening is a powerful tool to deepen trust and understanding.

Julie Christopher

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“Nobody learned anything by hearing themselves speak.” – Richard Branson

Did you know that an anagram for the word listen is silent? As an entrepreneur, have you ever found yourself frustrated trying to speak to someone who would not be silent and simply listen?

Whether you were immersed in a conversation with a client, at a company meeting or stuck in the negotiation of a business deal, it can be annoying when someone interrupts the flow of things, stealing away from your experience.

Related: Are You Listening Enough?

It can be especially difficult when you have an urgent need to communicate something important or accomplish an objective and you need to get your way.

However, did it also occur to you that perhaps you’d been the first to interrupt, thus neglecting to listen? Oftentimes, though largely unintentional, we force our opinions upon others, simply due to a lack of awareness.

The act of listening seems like it should be natural. However, in the business world, it’s one that needs to consciously be developed to manifest greater success. The act of listening varies from situation to situation, but it can be used as a powerful weapon to overcome adversity and ignorance.

So, ask yourself: Are you merely hearing, or are you actively listening? If your honest answer isn’t a favourable one, consider these five steps as reliable ways to not only connect on a deeper level with people through listening but to get your way as well:

1. Repeat or rephrase to demonstrate understanding

First, listen intently to what was just said. Then, either repeat or rephrase it so you know you’ve understood. Even better, your listener will know you did what mattered most – took the time to actually listen. This forces you to stop thinking about a response. Later on, if your audience makes a strong claim about what was said, you’re able to reference what you did to ensure mutual understanding.

Related: (Video) Shut Up and Listen!

Of course, when dealing with difficult individuals, there’s not much that can be done. As is the case with every rule, there’s an exception, and for this one, this is it. To avoid this kind of situation, should a critical conversation be on the horizon, consider taking notes. When it comes to listening, it’s one of the most sincere forms of flattery.

Also, be sure to pay close attention to listen to what is not being said, too. Like subtle body movements and other nonverbal cues that will alert you to critical information that will help you to get your way. Pay attention to them. They will help you to get a better feel for where a discussion is headed and how you can be more persuasive.

In his international bestseller What Every BODY Is Saying, former FBI counterintelligence officer Joe Navarro states, “Just as careful listening is crucial to understanding our verbal pronouncements, so careful observation is vital to comprehending our body language.”

bill-clinton2. Make your listener feel important

This isn’t easy, but if you can completely focus your attention and energy when listening, people will like you more. As stated above, the people you engage with want not only to be recognised but to be understood. When you don’t actively listen, it’s all but impossible for a favourable impression to be made.

Make your listener feel like they’re the only person in the room. Give them your undivided attention. Resist the urge to look around or check your phone. In today’s day and age, with so many competing distractions, this kind of focus is rare. You’ll be remembered and respected as someone who does things differently.

Former President Bill Clinton was famous for his ability to do this. No matter how long the engagement, treating people properly can curry favor for a future need. It’s no secret that people typically will help those they like, right? Needless to say, it’s much easier to get your way when you’re liked, and this is a great way to increase the likelihood of that happening.

3. Resist the urge to always be talking

In any business-related conversation, you’d prefer to be in the “driver’s seat,” right? Believe it or not, during a negotiation, the person who speaks the least tends to be perceived as the one in control. Unfortunately, most entrepreneurs believe the opposite – if they’re busy talking, they’re in control.

The truth of the matter, however, is that he or she who’s loudest frequently comes off as aggressive, egotistical or even desperate.

By listening, you learn. As you learn, you gain knowledge and wisdom. As you grow wiser, you’ll gain influence and become more charismatic. If you develop your listening skills and become an exceptional listener, you’ll be amazed at how attentive people will be when you finally do speak your mind.

Related: Are You Prepared To Listen To Your Board Of Directors?

Now that you have their attention, you can share everything you’ve learned from your conversation and you’ll know exactly what to say to get your way.

4. Be present in the moment and listen to your intuition

Imagine for a brief moment that you’re in a conference room at a large networking event. The majority of your peers can’t wait to “vomit’ all over you with mind-numbing information about what they do, how they offer it and why you stand to benefit.

Sound familiar? It’s a familiar scene for relationship-driven entrepreneurs.

Yet, what’s funny about all this is that it really takes only one introduction to the right person for your business to take a quantum leap forward. So, rather than trying to meet everyone, focus on how you feel around those in attendance before introducing yourself.

Related: Why You Should Be Listening To Informal Entrepreneurs

Are you ready to learn the secret of being a great listener? Simply pause for a moment and take a deep breath.

When you breathe deeply and in a controlled manner, you’re forced to focus on the present moment. This allows you to sharpen your self-awareness as you observe your surroundings with clearer and broader vision.

In this deeper, more intuitive-driven stage of listening, you’re free to release tension and doubt, helping prepare you for difficult questions, rejections or even objections. When not placed under pressure, you’re able to listen with your entire self: the body, the mind and the heart.

Bringing consciousness to your breathing develops intuition. With intuition on your side, you’re prepared to listen and (and learn) through the lens of your highest logic. The result? Others feel content and confident. Even better, you’re in a position to truly connect, as opposed to correct. All this from taking a much-needed breath or two before talking.

robert-cialdini5. Invest in building “relationship equity.”

Have you heard of the term “relationship equity”? It’s become very popular recently. Truth be told, there’s a reason for it – every time you demonstrate the ability to listen, you deposit “relationship credit” into your audience’s account.

Then, when it’s your turn to speak, the chances of the favour being returned with deliberate listening are increased. If not, gently remind the other person of the fact that you gave her the stage to speak her mind first and you’d simply like the same respect and courtesy now.

By listening first, you’ll influence others to reciprocate and return the favour. Reciprocity is a powerful subconscious tool to creating influence according to behavioural scientist, Robert Cialdini, in his latest bestselling book, Pre-Suasion – A Revolutionary Way to Influence and Persuade. As an entrepreneur, you can use reciprocity to your advantage through listening.

People not only need to be heard, but they deserve it, too

Both inside and outside of the working world, at the core of each one of us, lies a need to be understood and accepted. Active listening is a simple method that supports emotional intelligence. It not only makes others feel special but also demonstrates your ability to focus.

With this new focus, we can now effectively shift our attitudes from those of want and neediness to those of gratitude and even compassion. Actively listening summons feelings of security and stability in others. This is important, as it is actually an evolved form of recognition.

Even in business, listening is one of the best gifts that can be given. Listening magnifies your perceived value and validates your power of authority as a leader and an expert in your field. Intentional listening unlocks greater self-awareness, which is a state of consciousness that leads to joy and fulfillment.

In this state, you have a much better chance to influence conversations and get your way by listening, as long as you have the best intentions in your heart and that it is for the highest good.

This article was originally posted here on Entrepreneur.com.

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Self Development

10 Ways To Develop A Success-Oriented Mindset

Confidence empowered entrepreneurs to take decisive action, and decisive action is what builds confidence.

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Take a minute to imagine an entrepreneur you deeply respect. Think of that person at the start of his or her career, working on a product or service that will eventually make it big. Regardless of whom you’ve chosen, chances are the entrepreneur in question had a success-oriented mindset from the outset.

Entrepreneurs who lack confidence or who have a pessimistic mindset will usually fail. It’s hard to motivate people to invest money in a new idea or work for a fledgling company if the entrepreneur behind it lacks confidence. But having a successful mindset isn’t just helpful for those who are launching a new venture. It can also help readers from all walks of life to make smarter decisions that result in better personal or business outcomes.

Here are 10 strategies that can help you develop a winning mindset.

1. Put yourself in challenging new situations

You gain confidence by overcoming challenges, but when you fail to put yourself in challenging new situations because you assume the outcome won’t be positive, you will be unable to grow.

Instead, develop a list of exciting challenges you’re interested in overcoming. They could include exploring a foreign city on your own or enrolling in a challenging business course at your local university. Even volunteering to help with a new project at the office can provide a challenging situation that will foster growth.

Whatever the challenge you select, be sure it is something that interests you; otherwise, it may be difficult to stay focused along the way.

2. Be open to finding a mentor

Mentorship is often discussed with regard to self-improvement and business success. But many professionals assume that finding a mentor is as simple as asking a senior professional for help.

However, as Sheryl Sandberg argues in the Harvard Business Review, finding a mentorship doesn’t work that way. Instead, professionals need to put themselves in situations where they can build real relationships with senior business leaders.

In time, after an existing relationship has formed, it may be appropriate to ask a senior professional for mentorship. That means readers will need to make themselves available to build professional relationships before they can secure a mentor who can help them grow.

3. Think of failure as a learning opportunity

failureFailure is an outstanding learning opportunity. If you find yourself succeeding frequently, it may be a sign that you aren’t challenging yourself enough.

Develop a mindset that views failure as an experience to learn from. By reframing failure, you’ll find it is easier to take risks. Adopting this mindset will leave you less prone to anxiety, which is key to creating a winning attitude.

4. Keep a folder of your proudest moments

While it’s important to focus on the present and future instead of the past, maintaining a collection of moments you’re proud of can serve as a helpful reminder when you’re feeling down. By periodically reviewing past successes, you may find inspiration for future projects. At the very least, you can use past successes as a way to build long-term confidence.

5. Surround yourself with top talent

Environment plays a significant role in creating our mindsets. After all, we’re social creatures and are influenced by those around us. Surround yourself with talented individuals who can teach you new things and who can encourage you to grow personally and professionally.

If you’re involved in the hiring process at your organisation, look for prospective employees who are better or smarter than you. This will help create an environment that can consistently encourage you to form a successful mindset.

6. Find time to disconnect from stressors

The average American works more hours per week than his or her counterparts in other developed countries. Furthermore, the average number of hours worked has been steadily growing since the 1980s. Unfortunately, work-related stress has been creeping up at the same time.

Readers should find time to disconnect from work-related stress that can make it difficult to adopt a success-oriented mindset. Traveling can be a good way to disconnect, as can adopting a daily meditation practice.

7. Develop a simple morning routine

morning-routineAccording to lifestyle gurus like Tim Ferriss, we are shaped by our morning routines. That means it’s important for readers interested in developing a new mindset to develop new habits as well.

Since your morning has the power to make or break your entire day, consider creating a simple morning routine that positions you to have a successful day.

For example, waking up earlier than normal can give you time to focus on yourself in ways that might have otherwise been impossible. With the extra time you can go to the gym or develop a meditation practice to reduce stress, as mentioned above.

8. Set time-bound and achievable personal goals

More than 90 percent of New Year’s resolutions fail. If you’re serious about changing your mindset, you should take a different approach to goal setting. Instead of relying on a New Year’s resolution, create time-bound goals that you know are achievable from the outset. Approaching goal setting from this angle will help to build your confidence, which in turn will reshape your thinking.

9. Listen to your instincts

Part of developing a winning mindset is learning to trust your instincts. According to the Harvard Business Review, we are usually capable of making smart decisions when we rely on our gut instincts.

Confidence in your instincts is a critical component of business success. While it’s usually ideal to rely on research and data to make decisions, there are a variety of scenarios in when empirical evidence is unavailable or inconclusive. In these situations, people with a winning mindset are comfortable making decisions with their gut. This serves them well in the long run.

10. Avoid stagnation

If you feel as though you aren’t learning new things in your personal or professional life, it’s time to change it up. Avoid stagnation in order to continue to grow. This will help you to face new challenges and overcome new obstacles.

Developing a successful mindset can take time. To get started, focus on learning new skills and putting yourself in new situations. By overcoming adversity, you’ll begin to develop faith in yourself.

Establish morning routines and build a network of talented colleagues and mentors in order to avoid stagnation and achieve moments you can be proud of.

This article was originally posted here on Entrepreneur.com.

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