Have you ever doubt why other people keep getting ahead while you seem to be trying to survive from paycheck to paycheck? On one hand it’s useless to compare ourselves to others. There will always be people with more and we have and there will always be people with less. But on the other hand, what’s wrong from learning from the success of others? Nothing.
In a non-judgmental way, let’s start thinking about the top 5 reasons why people succeed. Your goal is to learn without beating yourself up and then to implement as much of the following as possible. Let’s get going. Here are the top five reasons why people become wealthy:
5. Potential Earnings
How much you earn is not the most important wealth producer because many high wage earners spend everything that comes in and more. That said, a healthy cash flow is extremely helpful because it sets up the possibility for you to save money away and invest. Without enough income, you’ll find it very difficult to ever put money aside for your future.
The key here is earning potential. You may not be pulling down big numbers now but what does the future look like? If the future is bright, it might make a lot of sense to stick with a job even if it isn’t that lucrative now.
Are there good opportunities ahead and are they realistic? How long will it take you to reach the sweet spot in your profession?
If your current job is a dead end, do everything you can to make a change. If you can’t jump into a different line of work, create your own new job by launching a side business or encourage your spouse to do so. Don’t worry about immediate results. Make decisions and take action today so that you’ll have the future income you need to save, invest and build your net worth in a serious way.
One big problem people have – especially younger people – is that many want immediate results. If you are impatient and demand immediate results you are setting yourself up for a gloomy future; here’s why.
Investments, jobs and businesses that “promise” immediate and high returns are usually costly pipe dreams and lies. It’s a law of nature; the higher and faster the return, the higher the risk. We have experience that these super quick return schemes usually lead to big losses.
Wealthy people understand that success takes time to build.
You may want quick results, but what you need is long-term success. You can build a very secure future by going slowly just like the rich people do.
Successful people tend to focus on what they know best and what creates the most value. Then, they outsource what they can to trustworthy experts. If you have a job or business with great potential, put all your professional attention there and don’t get distracted.
Of course it’s important to have balance in your life as well – we don’t live in lonely planet! But be mindful of your time and energy – don’t waste any.
2. Overcome Fear
This is especially important when it comes to investing.
Some people don’t invest because they think they don’t have enough money. But the reality is you can start with as little as RM100 so that problem can easily be solved. A bigger issue is fear and mistrust.
Investing in the stock market has its risks. But if you give in to fear, you’ll pass up some incredible opportunities — ones that come with big money signs attached.
1. A Plan
When you have a plan, you bring everything together. Successful people know this. With a plan you project out what your earnings are going to be, how much you’ll save, how you’ll invest, and (most important) how much retirement income you’ll have when you need it.
Your plan helps you see what it’s important and what requires less of your attention. And because a plan gives you a long-term perspective, it helps you overcome the fear that the media is working so hard to generate for you.
Most of the people who are getting wealthy use these five tools to build their wealth. The good news is, there is probably very little standing in your way that prevents you from doing the same.
What other strategies are the rich using to enhance their finances? What else can you do to imitate them?