Today the world had few thousands of Billionaires to its credit. But these few thousands of people having common habits in their day-to-day life. What are the top common habits out of those? Can we adopt those habits and become rich? We will see in this article…
Top 6 Habits that Make you Richest:
There are many common habits that we can observe in top richest persons in the World. Among those, the following are the Top 6 habits that one can follow to become rich.
1. Early Start:
Early start of savings gives you the benefits of power of compounding. In my previous articles also, I have mentioned about the Early Start benefits. For eg., assume 20% returns annually, a 20 years old saves Rs. 100 every month, by reaching his retirement age, he saves 1 CRORE. If a 40 years old saves Rs. 100 every month, by reaching his retirement age, he saves only Rs. 5 Lakhs. That is the power of compounding. Take Warren Buffett, was making and investing money at a very young age, and by the time he was 26 years old, he had saved $ 1 million. The young age gives you the flexibility to take more risk and returns more.
2. Vision / Have a Goal:
Most of the rich persons maintain a diligent to-do list. They identify their long term financial goals and
make an action path to reach of each goal. Goal setting really works for every person. Setting goals will make our mind-set to set-up a plan to act on that goal and you will do un-believable results. A study reveals that 81 % of rich persons in the world will have a habit of maintaining to-do list and are achieving these to-do list very easily.
Patience plays a key role and most important habit to the people who wants to become rich. Particularly for the young investors who are investing in stock market will see a fantastic results by just paying the patience. Rakesh Jhunjhujwala who believes in patience while investing in stock market is today number-1 stock market investor.
Please the following table about the Sensex and its 5-year returns since 1980:
It is obvious that the returns from the Stock market is always results in good returns if you have patience. One more example, if you had purchased Rs. 10,000 worth Infosys shares in 1993, now you would have
some Rs. Crores worth of shares in your hand. Just you need patience, that’s all. It will make you rich.
4. Calculated Risk-Taking:
Calculated Risk-Taking is always desirable, particularly when you want to earn more and to become rich. High risks yields High returns and you have to take risk in search of wealth, but your risks to be more calculated. Should not put all your entire investible amount into risky, only portion of your amount can be put into risky investments.
A thumb rule says, your risk amount = 100 – Your age.
For eg., if your age is 30, you can put 70% of your amount into risky investments like Equity, Mutual funds etc. and remaining 30% into safe investments like Debt, Gold, FDs etc.
5. Make Diversification:
Don’t put all your money into a single investment type. Include all types of Investment products into your
investments bucket. This approach will hedge the risks during any un-even events.For eg., during 2008, Stock Markets have collapsed and the Bullion Markets rallied. Those who put their entire investments in the Stock Market, lost heavily (some even lost their life!). Those who put also in the Gold, seen unbelievable profits. So, it is always better to diversify your investments to average any sudden losses.
6. Live Below your means:
“Buy used not new” is the famous habit of self-made rich people.Most of the self-made rich persons in the world buy used cars. They believe that, Wealth is more than the result of a
a luxurious lifestyle of hard work, perseverance and planning. Though the rich persons are affordable to have luxurious life style, they opt for frugal life style.
All the above top 6 Habits to Become Rich are proved concepts and every person should make them habituated in their life to become a rich person. “For the rich, it’s not about getting more stuff, it’s about having the freedom to make almost any decision you want”, says a famous writer.
Wish you all the Best!