8 Habits of Wealthy People

One of the best books on creating wealth that I’ve read is “Automatic Wealth: the 6 Steps to Financial Independence,” by Michael Masterson. What makes this book so valuable is that Masterson doesn’t tell you how to “get rich quick.” That seldom works. Instead, he shows that building wealth is a process. If you follow the process, wealth will follow.

The book is filled with nuts-and-bolts advice, not theory. As a case in point, Masterson offers 8 habits the wealthy have that help them to not only acquire wealth, but to keep it.

So here goes:

They work hard. About 59 hours per week, on average. The good news is, most have found work they enjoy so it doesn’t seem like work. So I suggest that you find work or start a business that you really like.

They are good at what they do. They have confidence and poise because of their skill. “There is something palpable in the way they hold themselves and the way they speak,” Masterson says.

They have multiple streams of income. It is still critical to develop your core skill first, but once you have done that, look for other ways to bring in income on the side, such as investing, according to Masterson.

They live in (relatively) inexpensive homes. Keep in mind, the bigger the house, with its bigger payments, the more you will pay for taxes, insurance and utilities, as well as more expensive furniture to show off your investment, Masterson warns.

They are moderate in their spending. Don’t’ be a Mike Tyson, the boxer who earned $400 million in 20 years and by 2004 was $38 million in debt, according to Masterson.

They are great at spending less. They buy less expensive cars and eat at home, for example.

They pay themselves first. They developed the habit early on of always putting a predetermined percentage of their income in a savings account.

They count their money. Wealthy people always know where they stand in financial terms.

So there you have it. Eight habits that lead to wealth. This is a very small sampling of the great advice in “Automatic Wealth.”

To read some more excerpts from the book, click here.
Automatic Wealth Link
Or click on the image in the upper left hand corner of this blog.