You’re probably listening to this podcast because you’re interested in property investment, but if you’re like most people, you’re also interested in more success in various elements of your life, as well as more money.
We’re going to have two separate sections to today’s show.
In one I’ll explain to you why wealth is about what you don’t spend.
In the second segment, I’ll have a chat with Tom Corley who studied millionaires and poor people for five years, and one of his conclusions was that being rich comes down to only two things.
Is it really as simple as that? Clearly, it’s not that simple or more people would be millionaires.
But Tom has a great message, and at the end of today’s show, you’ll know more about the rich habits you want to develop and the poor habits you should leave behind.
Why Wealth is About What You Don’t Spend
Some people use exercising to justify food binges.
They feel that they’ve done the exercise, so now they deserve a treat.
The same kind of thing happens with money.
Even though Australians earn more than they ever have before, financial gains made by higher wages are often lost due to higher spending.
Financial well-being is in the gap between what you earn and what you spend.
Savings relies on your ability to earn an extra dollar, acknowledge that it would feel great to spend it, but to save it anyway.
In other words, delayed gratification.
Earning more money is an important part of building wealth.
But it’s not enough by itself. Earning more won’t help you build wealth if you spend every extra dollar you make.
Learning to contently live with less has the same effect as growing your income.
And it’s often easier for you to control.
Building wealth is a negative art. It has a lot to do with actions you don’t take and things you avoid.
Everything has a price. The price of building wealth isn’t just the work of earning more money, it’s also avoiding the urge to spend.
Becoming Rich Boils Down to 2 Things
The first thing you have to do to become rich is to accumulate wealth.
This isn’t easy and it will take time.
The second thing you have to do is keep the wealth that you accumulate.
How can you do these two things?
With the right habits.
- One of the first thing you can do is start by setting some goals for yourself.
- Use visualization. Your brain thinks in pictures.
- When you visualize a goal that you want to achieve, you see a picture in your brain and starts looking for ways to get to that picture
- Once you’ve started to set goals, you have to start pursuing daily growth.
- Become a bit better every day than you were the day before.
- Don’t compare yourself to other people, compare yourself to who you were before.
- How should you pursue daily growth? A common habit of rich people is reading. Rich people do specific, focused reading every day, usually for about 30 mins.
- Another way is to practice your skills outside of work.
- When it comes to keeping your wealth, delayed gratification is important. Spend less than you earn so that you can put your money to work for you.
- Stay optimistic and open-minded. Having a positive mental outlook leads to looking for solutions to problems and listening to other people’s ideas.
- You need to have a strategy that you’re following for saving and building wealth
- Wealthy people are also prepared to pay for coaches and mentors
Links and Resources:
Some of our favourite quotes from the show:
“Spending more when your income rises is as tempting as eating more after you exercise. It feels like you’ve earned it.” – Michael Yardney
“Don’t compare your chapter one with somebody else’s chapter twenty.” – Michael Yardney
“The ones who are optimistic, they do better in life.” – Michael Yardney
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