8 Characteristics of the Successful
“Imitation is not just the sincerest form of flattery – it’s the sincerest form of learning” – George Bernard Shaw
The difference is often in the detail and in finance or managing your wealth, this evidently rings true. Whilst we all have intentions to exhibit strong financial behaviours, a difference in behaviours and habits can ultimately be the difference between wealth and financial mismanagement. We also often hear that successful people are creatures of habit. So when it comes to financial success, what are the habits these successful people are implementing?
Luckily, it is never too late to learn. When it comes to learning, why not learn from the best? Imitating the behaviours of those in positions you desire is a foolproof way to understand the benchmarks of success. So how many of these behaviours do you exhibit?
The early bird catches the worm. It’s no secret when it comes to investing, that the sooner you put your money to work, the greater your wealth will grow. This doesn’t necessarily mean investing when you turn 18 (although it would be optimal), but seeking and preparing to invest as soon as the opportunity arises. In other words, today is always better than tomorrow.
Set Realistic Goals
Those who chase unrealistic returns often find themselves in greater debt than those who have taken comfort in stable returns. Setting a target of 20% annual returns is unrealistic, and will likely lead to major problems when chasing such large returns. Set financial goals that are realistic and attainable, with consideration for the risks involved.
Whilst the digital age has both pros and cons for financial management, the wealthy make sure they maximise the benefits of digitalisation. Automating your payments, or better yet, automating your contributions to investments that have been derived through your budgeting is a great way to ensure you never miss a beat. This allows you greater time to worry about your investment strategies, rather than time spent on ‘operational’ activities.
Never Carry Credit Balances
It goes without saying that the wealthy investors avoid using credit balances at all costs. Whilst credit can be used to good effect, we are all aware of the potential risks and costs involved for carrying unnecessary credit. Balances should be paid off immediately to avoid any additional charges, so you can get to work growing your wealth.
For the wealthy and smart investors, the pursuit for knowledge never stops. After all, knowledge is power, and therefore the power to make smart investment decisions. The wealthy and smart investors are constantly reading and researching investment opportunities, networking and discussing with others, and engaging in any activity that will acquire them greater knowledge.
For those who don’t have the time to learn everything there is to know about the investment industry, there is always MW Lomax’s professional advisors who have a vast knowledge in the field.
If you acquire a small bonus or other sum of money, it can be easy to be tempted into spending it on a luxury item that you don’t really need. The wealthy are characterised by prioritising their investments – contributing to their overall wealth always takes precedence. As such, you should be seeking to constantly maximise your contributions if you are desiring to maximise your wealth.
Think Long Term
The wealthy avoid thinking about short term gains and rather seek to maximise returns over the long term. Having great foresight and a long-term strategy is a critical element of the behaviour of the wealthy. It represents a mentality of sustainability rather than instant gratitude.
Whilst adhering to strict financial behaviours is not easy, and often sounds quite drab and unexciting, wealthy investors still take the time to reward their successes – just not excessively. Using dinner at a nice restaurant or a quiet weekend away as motivating rewards for consistent behaviour and successes, ensures that there is the optimal level of ‘work and play’. After all, everyone wants to enjoy the fruits of their labour.