Studying Millionaires – The Roads To Wealth
Want to create financial wealth? Then study the rich and emulate their behaviour, says self-made millionaire Steve Siebold in his book, “How Rich People Think”. Interesting to note is that the book isn’t titled, “How To Get Rich” or the equally unpopular, “How To Get Rich Quick”. Changing one’s thinking about any particular topic, it seems, is the correct way to approach any desired change or improvement.
In his book, Siebold tells the story of how he himself used to think long and often about why some people eventually “made it” and others did not. He then decided the old “do what they do” strategy and started to pay close attention to how rich people thought about things and also what their particular lifestyle habits entailed.
Quality Of Company Matters
The rich very seldom keep the company of the unsuccessful. Quite the contrary in fact. Rich people, says Siebold, tend to keep the company of other successful people. This is true with regards to general elements of character and as it turns out, also when it comes to talking net worth. Your net worth, according to Siebold, mirrors the net worth of your closest friends and more often than not, even that of the general company you keep.
Multiple Sources Of Income
Another game-changer on the road towards great wealth appears to be the cultivation of more than one stream of income. Siebold observed that a common trait of the truly wealthy is the fact that they have, without exception, created two or more streams of income on the road towards becoming rich.
This entailed anything from a part-time job to a long-term investment to a hustle or two on the side. In fact, this is one to pay particular attention to, as most of the people studied by Siebold had at least 3 sources of income before they were able to deem themselves financially successful.
Saving In Order To Invest
Another biggie. In fact, so big that this particular concept is described by millionaire Grant Gardone, who also happens to be self-made, as the road towards becoming not only rich, but super rich. The only reason to save on a regular basis, says Gardone, is to eventually be able to invest. So crucial is it to create investments, that this plays a bigger role than the actual size of your paycheck.
A sentiment shared by personal finance guru Ramit Sethi. Sethi noticed that the really rich on average save and eventually invest at least 20% of their annual income.
Turns out our grandmothers had been right all along!