Since we are starting a brand new year, I thought it’s a great time
to talk about habits that we can implement
that will increase our wealth. In today's video,
you're going to learn 8 rich people's habits,
that will change your life.
And make sure to stick around
until the very end because I think the last habit is going to surprise you.
I am Tiffany Thomas with wealthytiffany.com
and I achieved financial freedom and I became a millionaire.
If you are looking to do one or both of those things, hit that like button
and hit the subscribe button, and we're going to dive right in. All right. So what
are these eight habits of rich people or wealthy people that are going to change your life?
Well, you can probably guess habit number one
since I talk about this all the time. And it is to invest as much as possible as soon as possible.
That is what the wealthy are doing. They are investing their money.
Making it work for them, instead of them always working for the money.
And the sooner we invest our money,
then the sooner we can start to build our wealth
and become financially free. The wealthy are not waiting
for the next market crash or crypto crash to start investing their money.
They are already investing their money and they continue to do that over time.
That way they can take advantage of compound interest
when they are young and continue to do it when they
are older. And talking about investing as much as possible as soon as possible,
they also invest their money in assets, not liabilities.
So, they are spending their money on things that are going to make them money.
For example,
I like investing in real estate and that is something that makes me money.
When I buy a real estate property,
I rent that property out and then I collect cash flow each month from my renters
and that property continues to appreciate over time.
So instead of buying a brand new car and immediately losing money,
when I drive it off the lot, I invest in something that's going to make me money.
And when rich or wealthy
people do that, then they can take advantage of that when they have that asset
that is making them money, then they can buy something else
that may not make them money, but their priority is to invest in assets first,
and then they can buy something else.
So, if you want to buy a brand new car,
then I think about investing in a real estate property
first, start collecting that cash flow and then from that cash flow
you are receiving from your rental property, you can put that toward a payment on a car.
But if you go out and buy that car first, then you are just taking that money
that you are probably earning from a 9 to 5 job
and putting that towards the car payment.
So try to flip your mindset and think, okay,
what can I invest in that is going to make the money so that I can buy
the things that I want to that aren't going to make me money, rather than thinking,
oh, I really want something even though it's not going to make me money.
I'm still going to buy it. And I remember when I read Rich Dad Poor Dad,
and if you haven't checked out that book, I would definitely recommend it.
I'll leave a link below in the description.
But it talks about in there that he I think he wanted to purchase a vehicle,
and so he thought, okay, I'm going to wait until I purchase a property
that's going to make me money and will actually pay for that vehicle.
So it's a really great concept.
Invest in assets first, start making your money work
for you and then you can buy the other things that are not going to make you money.
Or you can be even smarter and invest in something else
that's going to make you even more money. You can buy one rental property,
start receiving that cash flow and then buy a second
rental property instead of buying a car first.
You can start to accumulate all of these assets, have a lot of money
working for you and then buy something that isn't
going to make you money. The wealthy have
multiple sources of income and different ways that they are making passive income.
I think the average amount of passive income sources that the wealthy or the rich have is 7.
So think about the current passive income sources that you have right now
and how can you expand on them?
What are some other ways you can start to make passive income?
And I do have a video about this. I will a link above and below in the description.
You can check that out later on.
But you don't want to just be relying on one source of income, especially if it's a 9 to 5 job,
because you never know what can happen.
Especially with what had recently happened in the world.
And a lot of people had lost their jobs. You just never know.
So you don't want to rely on one source of income.
You want to create as many sources of income as possible.
For me, I have my business, this YouTube channel,
and meeting with people one-on-one, and a couple online courses.
I I have my book. I also have my real estate properties,
and I even have investments in the stock market.
So you don't just have to stick to one source of income.
The second habit of rich people or wealthy people,
is that they knew when to sacrifice,
they made sacrifices when they were younger.
So that they could have the lifestyle that they desired later.
They realized the importance of making sacrifices early on,
for example, when all of their friends are out partying,
they were working on a side hustle. And to give a personal example,
when everyone was going out to eat at lunch,
when I had my nine-to-five job, I brought my lunch to work
99% of the time. I made that sacrifice,
so that I could put my money elsewhere to things that were more important to me.
And it has definitely paid off. And I have a video all about this,
how much I was able to save.
So I'll leave a link above and below in the description.
But think about different sacrifices that you can really be making
now to put more money toward investing or even paying off debt.
If that is what your current financial situation is.
And it can be something small because those small things do add up over time.
So it's not all about purchasing whatever you want, whenever you want,
but it's actually really focusing
in on what is important to you
and prioritizing what you're spending your money on. Making sacrifices
for those things that are not that important
and really focusing on what is going to bring you joy or happiness,
or help you accomplish your goals. And this goes into the third habit that rich people have.
And this is keeping a long-term mindset.
And I know this makes a big difference for me when I start to think,
oh, things are not really coming together the way that I want,
or as soon as I want. I try to take a step back and think, what is the long-term goal here?
And what is one simple thing I can do
now to help me reach that goal later on?
And this is especially helpful when you are investing.
For example, when the stock market takes a huge dip or it crashes,
you're not so worried about that because you have your long term mindset,
that long-term perspective and you realize yes,
the stock market is going to crash. It's going to take dips over time.
But the trend of the stock market will continue to go up.
So you don't have to worry about pulling out all of your investments
when it crashes. You'll want to leave your investments in there.
And remember it will go up over the long term. And with that long-term perspective,
also thinking about your own life.
Where do you want to be in 5 years, in 10 years, in 15 years?
And what are the steps you can take now to get there?
If you're just thinking about the here and now and that instant gratification,
then you are really going to struggle making more money,
increasing your wealth. Habit number
five of the rich or wealthy,
is to track what they are spending.
They actually have an eye on their finances.
They know how much is coming in, and how much is going out,
and where it's going out to. It's really important that you track your finances.
And it's not just about tracking the money.
It also goes along with your goals when you can see where your money is coming in,
and where it's going out, you can really say,
okay, am I spending money where it really counts?
Is this going to help me reach my financial goals?
Or is it taking me further away from those goals?
But if you aren't tracking, then you don't really know where your money is going.
I personally use a spreadsheet and I also use a free app called Personal Capital.
You can hook all of your financial accounts to Personal Capital
and that way you can see your full financial picture in one place.
You can see all of your transactions on all of your different credit cards.
You can see how much is in your 401k or your Roth IRA, all in one place.
So It is really awesome. I will leave a referral link below in the description
and you can set up a free account at Personal Capital.
If that is something you are interested in. Habit number five of the rich or wealthy,
that is going to change your life
if you use it properly, is to use credit cards to their advantage.
I would say, most wealthy people use credit cards, they can use the
benefits of credit cards without having to pay interest,
because they understand how they work. And I definitely use credit cards.
I love getting the cash back on my credit cards
just for spending money, I'm actually earning money. And it's not that I am spending
extra money to earn that money.
I'm watching what I'm spending but I utilize credit cards to my advantage.
And since I'm not a huge spender,
I get hundreds of dollars back each year on my credit cards.
I'm sure some people are getting thousands of dollars back on their credit cards,
but even the hundreds that I get back is totally worth it to me.
Not only do credit cards offer the cash back rewards,
but they also give you a 30-day time frame
not to pay any interest. Or it could be even longer
if you open up a credit card that has a zero percent interest rate for 12 months.
And if you are interested in opening up a new credit card,
I do have my referral links to a few of them below in the description.
And one of those credit cards is my Discover It card.
And honestly when I was redoing the flooring in the property
that I recently moved into I called my Discover
card and asked them if they would give me a zero percent interest rate
for 12 months because I was about to make a really large purchase.
And they said, yes, and the reason they said,
yes, is because I used my credit card properly.
I've never paid interest on any credit cards. And if you want to know more benefits about
credit cards, I have another video about that.
I'll leave a link above and below. Comment below
and tell me if you are currently using credit cards or not.
I know credit cards are not for everyone.
Sometimes they are very hard to handle. So I do not recommend using credit cards
if you are going to pay interest on them.
Habit number 6 of the rich or wealthy, is that they learn from their
mistakes and from other’s mistakes. They aren't getting stuck in
the past worrying about the mistakes that they've made along the way.
They are really focused on the future
and they learn from their mistakes and it's not that they never repeat a mistake.
That might happen again. It might take a few times to
learn that lesson, but for the most part, they are learning from their mistakes
and they can look at others that have been
successful and learn from their mistakes as well.
So that they don't have to make all of the mistakes themselves
and to go along with learning from their mistakes,
they actually repeat what works.
So if they found something that was working for them,
then they're going to repeat that process.
For example, I started investing in real estate and that was working for me.
So I continue to invest in real estate.
I purchase the property and I rent it out
and plan on holding it for the long term
unless there is some extenuating circumstance that comes up.
For example, I did sell one of my properties recently.
You can check out why I did that in another video,
but for the most part I plan to buy and hold those properties for the long term.
So I'm not switching up my strategy and doing a fix and flip, and a buy-and-hold,
I stick with what works because I have already learned
from a lot of mistakes that I have made.
So I can get better and better at that process by continuing to do it. And just as
another example, investing in the stock market is very easy to invest in an index fund
and that has worked for me.
I also do a few individual stocks,
but the majority of my money is in an index fund.
So I'll continue to repeat that process.
Because it has worked. Alright,
habit number 7 is not talked about as much,
but it is definitely an important habit.
And this one is to give back, to donate to a cause that you believe in.
If we are so focused on ourselves and thinking how much money can I make,
how much money can I hoard and we just keep that to ourselves,
then what is the point of that if we can't share that with others
and help others benefit from what we've been able to accomplish?
Then what is the point really? It's important that we find
something that we believe in and that we donate to that cause.
And I have done this in my own life and I've seen that come back tenfold,
not only in monetary ways, but also in other ways. It helps us become better people.
We become less selfish and we are more able to serve others.
Let me know in the comments if you are donating your money
or your time to something that you believe in.
All right, habit number eight of the rich or wealthy, that is going to change your life is,
spending a lot of time figuring out how to make more money.
Rather than spending a lot of time on how to save a little bit of money.
And I'm not saying saving money is bad,
or it is a waste of time because it is not. Saving money is very important.
But when you want to become wealthy, you want to build that
wealth. You really want to spend a lot of time figuring out ways to
increase your income, ways to make more money.
That is where the majority of your time should be spent rather than spending a lot of
time on saving just a little bit of money here and there. For example, going back to
habit number one of investing as much as possible as soon as possible.
You want to figure out what is going to make your money work for you?
What is going to be the best investment?
So you want to spend time on that, especially if you're investing in real estate, you want to find
a really good property that is going to appreciate over time
and give you a high cash flow each month.
So you'll want to spend an hour researching properties,
rather than spending an hour clipping coupons,
and I'm not saying clipping coupons is bad. I do it.
But that is not where you want the majority of your time to
be spent. Start spending more time thinking about
investments that you can make, and less time setting up an online savings account,
that is going to pay you a little bit more in interest. And while yes,
I do use an online savings account for my emergency fund.
When you take that into the grand scheme of things.
If you are spending hours figuring out which online savings account
has the highest interest rate
and you are switching your money over to that one
and then finding one later and switching your money later.
That is not going to make that big of a difference.
What is going to make a big difference is, figuring out which index fund to invest in,
or which stock to buy,
or like I mentioned before, which property to buy.
So when you look at that full picture,
when you can make 20 bucks a year in your savings account versus ten
thousand bucks a year from a rental property.
You can see, there is a really big difference.
You really want to make sure you are spending your time
on what matters most. And we can even look at this in the example
of reducing our expenses. If we want to save $50 a month and eat out less then that
is great. But what if we actually
looked for a different place to live and we could be saving a thousand dollars a month?
Then that is a huge cost savings.
So try to focus in and spend time on things that are going to make the most difference.
And I know there are a lot of different habits of the rich or wealthy.
So, comment below and tell me what your favorite habit is.
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Thanks so much for watching. I'll see you in the next video.