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The 10 Habits of the Financially Successful, Part 2


6) The financially successful believe in education: Don’t be a victim any longer. Learn the habits of being competent financially. The financially successful are open minded and always open to learning new skills and on the lookout for the next big idea or next big thing. They read books, magazines and watch videos about finance. They watch TV shows and reports that discuss the financial picture of the world and apply it to their individual financial situation. They ask questions to better learn and understand the complex world of personal finance and money management. They invest time managing their money. Subscribe to Money Magazine. If you don’t understand everything in the articles, that’s OK. Reread them and research online any terms or discussion you do not understand.


7) The financially successful do not covet and suffer envy: It appears God and Moses were on to something with the 10th commandment. I suspect that envy was around before Moses. Envy causes misery. Envy is the emotion that leads us into going into debt to impress those that could care-less what type of car you drive or what brand of watch you wear. Do not worry about what people think about how you should spend money. It should align your purchases with your financial goals and systems you have put in place.


8) The financially successful know about the Law of the Harvest: You reap what you sow. If you invest money in a credible and legitimate investment, expect to reap a reasonable return on your investment. Then take the return and reinvest that. That is the foundation to compound interest and compound returns on investment. If you invest your money in fast cars, girls, and party narcotics, then you will reap the reward you deserve. The successful create their own opportunities. They do not depend on handouts from their parents, their family, or their government. They take initiative. Plant the right seeds in the right soil that will cause financial success. Any farmer will tell you; it is what is under the ground that determines what grows above the ground. This philosophy is true with investments.


9) The financially successful have a System to Achieve their Goals: The financially successful have a written financial plan. They have a written budget and they follow it. A budget not followed is worthless. They have a written balance sheet. They develop a plan to pay off debt and increase their savings and they put the plan in play. They set career goals and monitor their progress. There goals are specific, measurable, attainable, and timely. Their goals create a framework to construct a system of processes that support real change. Goals without process systems are dreams. Thoughts that never become a reality. Enact a plan of action to realize your goals.


10) The financially successful are frugal: They spend less than they earn regardless of their income or status. They tend to not be greedy. They don’t use credit cards to buy something they cannot afford. A sign of greed. They don’t buy cars on credit that they cannot afford. A sign of greed. They do not envy other peoples’ lifestyle tempting them to one up their friends or neighbors. A sign of greed. They do not believe life owes them a particular standard of living maintained by borrowing money for unnecessary wants. They shop for their needs and negotiate a good value. They spend as little as so they can save and invest. Then they make an income on their investments. Then they earn money on the money they earned! The frugal do not buy fancy cars or boats, fancy clothes, and fancy jewelry. They appear less rich than they are. Only people who desire to look rich, waste money on such folly.


 

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