We live our daily life with good and bad habits. We practice these habits un-noticeably everyday and these habits affect our life or even could decide where we will be in the future.
Everybody like good habits but not everyone can persist to the good habits and eliminate the bad ones. That’s the reason why 5% of the population could control 90% of the world wealth. Let’s discuss further the bad habits that you should avoid in order to be rich.
Bad Habit 1: Not Investing Their Money
It is understandable that ordinary people earn a limited income that might be just enough to sustain their lifestyle.
The poor tend to spend all the money that they earn and keep complaining that their wages is just not growing and they can’t be rich.
Here is the thing, your money will not grow in the bank as the interest rate is so miserable and never outpace the inflation.
The rock solid rule to be successful as below:
Income – Savings (Investment fund) = Expenses
Save BEFORE you spend instead of spend before you save.
It could be investing in stock market, ETF, mutual funds or other relatively low risk investment tools. The border line is do not leave the money sleep in bank.
Bad Habit 2: Not Investing In Yourself
Investing your money could be important, investing in yourselves is even more important as you could lose all your hard earn money if you invest blindly.
Be it learning a new skill or enhancing your financial knowledge, it could never go wrong by investing your time and money to yourself.
Hold your fate and destiny within your own grasp rather than putting it on other people’s hand. It might be convenient by getting other people to perform the task and invest on behalf but it will be great regret if anything goes wrong and you don’t even know what happen.
Bad Habit 3: Living Out of Your Means
The problem with the ordinary people is there is no budget in spending and spend more than they earn. The results, they will always struggle with overwhelming bills and debt.
To end this struggle, a budgeting blueprint will need to be in place to optimize your spending.
- Major necessary spending (housing, car, etc…) – Not more than 25% of your total income
- Living necessity (food, basic clothing) – Not more than 15% of your total income
- Entertainment (movie, vacation, bar/club, etc…) – Not more than 10% of your total income
- Self-enhancement (taking advance course or learning new skill) – Set aside 10% of your income to upgrade yourself if possible.
- Backup fund (For emergency use or standby for variation of the items above) – 10%
Adhere to the budget above you will have at least 20%-30% of your total income for savings and investment!
Last and the most important thing is, do not overspend on your credit card and accumulate your debt! Credit card debt is one of the most expensive debt in the world. Accumulating credit card debt means you can never get out of the rat race.
Bad Habit 4: Not Taking Action To Meet Your Goal
People always misunderstood ‘goal’ with ‘wishes’. We can have thousands of wishes but if you do not take action to realize it, it will always be wishes but not goal.
Setting up a goal means you have to take necessary actions to reach and meet the goal.
We are understand that success needs hard work and efforts. J.K. Rowling will never be an successful author if she did not take the pen and write down the story.
Take your first step today and trust me it means a lot for your future success.
Bad Habit 5: Give Up Easily
The great doesn’t success at their first trial. Thomas Edison has failed more than 10000 times before the first light bulb invented. How many of us can endure the agony of failing 10000 times without giving up?
Anyway, we do not need to be Thomas Edison and most probably we will not need to fail 10000 times before success. But we will still need to endure numerous failure before getting what we want.
Perhaps reading on the epic failure stories can give you some encouragement to insist on your effort. Click here for more stories.
Bad Habit 6: Curse and Swear
What’s more toxic than cursing and swearing? Always spitting bad words out of your mouth will not bring you any benefit.
If you believe in the law of attraction, you should eliminate the ‘bad words’ from your vocabulary as much as you can and add more positive words in your daily life.
Good luck will eventually come to you as positive habits lead to opportunities such as promotions, bonuses, new business and good health.
Other than that, never give up your background works and keep improving yourself.
Knowledge is the best weapon to be successful.
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