“All of us aspire to become financially successful; however, many of us are clueless about how to become one," it said. “It has been observed that more than anything else, it is one's habits and actions that eventually bring him success in any field. And it turns out that financially successful people also have some powerful habits in common.
“We, therefore, decided to compile a list of shared habits of the financially successful people so that those desiring to tread the same path can imbibe them and eventually translate their dream into reality. Below are the top seven habits from that list.
“(1) They respect money and understand its importance, value and utility. Hence they don't expend or blow up all the money they earn. They know how to live within their means and they also save and invest a significant portion of what they earn, which in turn brings them passive income in terms of interest, dividend, profit or capital appreciation. This ensures that their money keeps generating more and more wealth in course of time. Thus, they make their money work for them, and they don't have to work for their money.
“(2) Financially secure people are not interested in keeping up with the Joneses. As such, they never try to buy status or respect or admiration or power by showing off their wealth or possessions. Hence, they don't go after fancy cars or filthy entertainment nor do they resort to reckless spending just to impress others because they know such actions can only derail their savings plans.
“(3) High-net-worth individuals know that achieving financial goals calls for time, attention and focus. So they not only have very clear financial objectives, but they also draw up a budget and stick to it. They also formulate long-term savings plans and create a financial roadmap to achieve them. They resort to and implement prudent strategies in a bid to build wealth and secure their financial freedom.
“(4) Financially successful people not only manage their money carefully and conservatively, but many of them even strive to live frugally. Most of them accumulate wealth and safeguard it by keeping tight control on their expenses. Strangely, some of them may even decide to live below their means by staying in middle-class neighborhoods, driving used cars and shopping at average retail stores even when they can afford much more.
“(5) They also understand the importance of financial education for better money management. As there are many things constantly vying for their money, they become financially educated by reading relevant books, attending financial tutorials or consulting a financial advisor regularly. It keeps them abreast of everything that concerns their finances and enables them to make better financial decisions. Financial education and money management skills also protect them from scams and frauds.
“(6) If they have borrowed money or availed a loan, they have a habit of tracking their debts. They subsequently draw up a plan to control and eliminate all their debts swiftly because they realise that when one is bound by debt, he has no choice but to stay in a miserable job, location or house against his own will. So they make it a habit of listing out how much they owe and to whom with a grand total amount, in a bid to repay what they owe sooner than the normal repayment schedule. This habit also makes them less inclined to accumulate new debt.
“(7) Last but not the least, they realise the importance of making sufficient provision for a comfortable retirement and start investing in pension funds early enough so that they don't have to face any income shortfall in their old age. They analyze all the available options and pension plans, engage with them by spending considerable time studying, planning and following their investment results and adapting wherever necessary. Thus, they not only make sure that they have a good income in later years, but they also confirm that their spouse, dependants and loved ones always have enough resources to fall back on whenever needed.”