The Power of Association | Rich Habits, Poor Habits [VIDEO]

If you want to succeed in life, if you want to become rich, you need to understand the success habits of the Rich and develop more of these and drop the habits of the Poor. 

We pick up most of our habits from those in our environment: parents, teachers, family, friends, work colleagues, neighbors, mentors, celebrities, coaches, etc.

We all have empowering beliefs and limiting beliefs.

I’ve often said we drive around with one foot on the accelerator and one on the brake!

In this week’s video we discuss one of the important differences between the rich and the poor – something Tom Corley calls the Power of Association.

Financial success takes a long time.

In Tom Corley’s Rich Habits Study it took the average self-made millionaire 32 years to become “rich”.

When he began his study he wanted to know the answer to one question: why are some people rich and other people poor?

Five years, and 51,984 questions later he learned the answer – your daily habits.

Habits dictate your circumstances in life.

Habits affect just about every aspect of your life. And there are many shades of habits such as:  

• Money habits
• Eating habits
• Drinking habits
• Exercise habits
• Sleeping habits
• Recreational habits
• Work habits
• Reading habits
• Relationship habits
• Happiness habits
• Thinking habits
• Morning habits
• Afternoon habits
• Nighttime habits.

According to a 2006 Duke study, 40% of our daily behaviors, thinking and emotions are habits.

Money habits have the most profound impact on your financial circumstances.

These can be broken down into two sub-categories: spending habits and savings habits.

Many self-made millionaires are able to accumulate their wealth by virtue of having learned good money habits from either their parents or some mentor in life.

When you have good money habits, you spend less than you make and save the difference.

Over time, this savings grows and compounds.

Those who dutifully live below their means for much of their lives are able to accumulate significant amounts of wealth.

Some are even able to accumulate millions.

But most, unfortunately, do not have good money habits.

How do I know?

In a 2013 survey conducted by the Associated Press, they found that 80% of America’s adults struggled with poverty or were near-poverty, just one paycheck from their lives completely unraveling.

No safety net, little to no savings, every day just trying to keep up with their bills and credit card payments.

One of the culprits for this is a Poverty Habit Tom uncovered in his research that derails most in the United States.

Some call it keeping up with the Jone’s.

I like to call it Poverty by Association.

We pick up most of our habits from those in our environment: parents, teachers, family, friends, work colleagues, neighbors, mentors, celebrities, coaches, etc.

Those struggling financially were never taught by these “influencers” the habit of Living Below Your Means.

It’s unfortunate, but very few like to talk about money.

If no one around you is talking about money, if your parents and your teachers are not teaching you good money habits, then you are adrift in a sea of financial uncertainty.

As a result, it is highly probable that many of the individuals you associate with on a regular basis are as deficient as you are in managing their money.

They very likely have bad spending and savings habits that are dragging you down along with them.

A night out on the town with a friend can become an unexpected $300 whirlwind and a vacation can turn into an investment.

Think long and hard about the affect your friends, and those you associate with on a daily basis, are having on your spending and savings habits.

If you hang out with spendthrifts, there’s a good chance you will become one yourself. 

One of the hallmarks of the self-made millionaires is the conscious effort they make to associate with like-minded individuals.

If a close relationship is a spendthrift, they limit how much time they spend with those individual

If a close relationship is conscientious with their money, they increase the amount of time they spend with those individuals.

If you want to adopt good money habits, you need to associate with individuals who possess good money habits and you need to disassociate yourself from those who have bad money habits.

If all of the close associations you make in life share your desire to live below your means, it is highly probable their good money habits will become your good money habits.

ALSO READ: 14 signs you have what it takes to become a millionaire | Rich Habits Poor Habits [Video]

About Michael Yardney Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.