There is a saying that money is the root of all evil and in our culture, there is an emphasis of valuing quality of life over the accumulation of wealth.
It is understandable and lofty to be a good person but the fact of the matter is that money can help alleviate some stresses related to increasing one’s quality of life and I don’t think we should begrudge those who strive to become rich during their lifetime.
If you are not wealthy and you might want to become so, you certainly can and should consider adopting some of the habits of the most wealthy people.
Also, you might want to fall out of the bad habits exhibited by those who are not setting up their future generations for a more comfortable existence.
Thomas Corley did an exhaustive study from 2004 to 2007 , trying to uncover the underlying differences between the wealthy and the poor, then he spent another 16 months analyzing and summarizing all the data he acquired from his extensive interviews.
The people in the wealthy group had an annual gross income greater than $160,000 and $3.2 million in net assets. The individuals in the poor group had an annual gross income of less than $35,000 and $5,000 in liquid assets.
He uncovered eight core habits of the rich and wealthy which blueprint for accumulating wealth and success.
I love the fact that the list includes habits for children. Here is list as summarized by blog millionaire Brandon Gaille:
#1 Listen to Audiobooks or Podcasts During Your Commute
Thomas Corley’s study found that 63% of the wealthy did this and only 5% of the poor did this.
#2 Live Within Your Means
- No More than 25% on Housing – The house is typically the one area that families stretch way to far on. They tend to look at their total income and ask, “can we afford it?” The correct way to identify your housing budget is to look at your after tax yearly income, and then multiply that by .25. That number is your budget for your mortgage, home insurance, and property taxes.
- No More than 15% on Food – Eating out at restaurants can easily get out of control. The best practice is to limit eating out at restaurants to once a week, and never order alcoholic beverages during a meal. Just a couple of drinks will double your bill.
- No More than 5% on Auto Loans – The car is another area where people tend to overspend. The more expensive your car is, the higher the bills will be for maintaining your car from year to year. If you want a nicer car, then consider buying a low mileage used car that has been on the road for two years.
- Contribute maximum percentage to retirement that the IRS allows –
#3 Maintain a To-Do List
81% of rich maintain a to-do list compared to 9% of poor doing the same.
#4 Take Care of Your Body
76% of the wealthy exercise aerobically 4 days a week, compared with 23% of poor doing the same.
#5 Limit Your Television Time to Less than 1 Hour Per Day
65% of the wealthy watch less than an hour of television each day. Only 22% of the poor practice the same habit. When it comes to reality television this statistic shows an even larger gap. 77% of the poor watch reality television, and only 4% of the rich indulge in this time consuming habit.
#6 Teach Good Success Habits to Your Children
Here are a few stats on how the wealthy and poor raise their children…
- 74% of the rich teach good success habits to children, while only 1% of the poor did the same.
- 70% of the wealthy make their children volunteer 10+hours a month, compared with only 3% of the poor.
- 63% of the rich encourage children to read 2+ non-fiction books per month, and a mere 3% of the poor followed suit.
#7 Set Goals the Right Way
67% of wealthy people write down their goals. Only 17% of the poor do the same.
#8 Never, Never, Never Give Up
In Corley’s study, it was apparent that all of the people that were classified as wealthy never stopped pursuing their goals. The poor had the bad habit of always stopping short before they made it.