While everyone dreams of financial success only a handful evolves from
being dreamers to actual wealth achievers ask yourself which of these
two categories do you fall into the best way to answer this question is to
reflect deeply on your current habits and discern
whether they're bringing you closer to your goals many wealthy people credit
their success to building a solid financial foundation that was grounded
on healthy practices and in this video i'm going to be sharing with you seven
signs you'll be financially successful sign number one you prioritize your high
income activities one notable difference between wealthy people is that they
sacredly value their time as opposed to most of us wealth gurus focus their time
on activities that drive maximum financial value and as a business owner
investor or employee focusing full blast on activities that bring in the most
money is the first sign that you become financially successful i know this
contradicts a multitasking ideology that self-proclaimed time management experts
sell to you but it's a plain truth mashing up income generated activities
with non-cash generating ones is a recipe for financial mediocrity let me
introduce you a time management concept that will help you see this clearly in a
nutshell you can assort your cash inflows in three main categories with
the first being your primary income generators these are high income
activities that directly translate into peak income as an employee your primary
income generator is your highest paying job since this is where you spend most
of the time and attract the highest income if you're a business person your
primary income generator is your startup or online business as a full-time
investor your primary income generator is your most valuable investment venture
you should narrow your focus on your primary income generators for two main
reasons first your primary income source sustains your lifestyle secondly it's
responsible for stimulating and sustaining your secondary income
generators once you have this handled you can move on to secondary income
generators secondary income generators are activities that help expand your
cash flow although the financial value they drive isn't comparable to your
primary income generators it's common to find that most secondary income
generators don't need your full-fledged attention or input think real estate
stock investments and passive businesses then finally we have trivial tasks these
refer to minor activities that generate little to no income hence in most cases
you're better off outsourcing them trivial tasks play a significant role in
fueling your primary and secondary income such as copywriting graphic
design market research and customer support sign number two you focus your
free time on making ancillary income spending free time productively is a
unifying factor for financially successful people specifically making
ancillary income when you're not working can boost your finances significantly
ancillary income refers to secondary sources of income other than your
primary job to prove how crucial ancillary income sources are look at the
wealthy people around you you'll notice that most of them don't depend on one
job or business it's likely that they have a side business or investment that
contributes to their overall monthly income actually one study discovered
that the average millionaire has around seven sources of income so if you have
three or four so far you're on the right track now why are secondary income
sources important the thing is you can't save your way to financial freedom you
can save and reduce your spending all you want but as long as you have only
one income stream you run the risk of going broke when you lose that source
passive income sources therefore provide financial security in the event of a
recession also you can use your ancillary income sources to fuel
significant investments if you have a primary job and a website that sells
your courses on the side you can direct your website income towards investing in
the stock market you'll achieve your financial goals faster compared to when
you entirely depend on your job with that said some of the best sources of
ancillary income include stock market dividends capital gains interest from
high yield savings accounts or royalties sign number three you are constantly
increasing your financial iq do you consider yourself financially savvy
perhaps you're the only person that people approach for any form of
financial advice here's some good news financial abness is a telltale sign that
you're meant for financial greatness the truth is one of the reasons why many
people fall behind financially is that they lack financial intelligence in fact
making money isn't hard at all what's challenging is making this money work
for you while evading the traps that come with increased income to prove this
look around you how many people hold well-paying jobs yet they're either
broke or saddled in debt how many middle-class households live paycheck to
paycheck they're quite a number for sure and it's not because they don't earn
enough money in reality the root cause of their financial stagnation is that
they're financially dumb they're done because they're clueless about managing
money hence they are stuck on a monthly salary to avoid going down a similar
path it's best to sharpen your financial iq as expected those with high financial
iqs know how to draft realistic budgets when you budget you're less likely to
overstretch your income or waste money since you allocate every coin towards a
need a reasonable budget should channel at least 30 percent of your income
towards savings and these savings should cater to your investments as you can see
financial iq is the most critical asset for any wealth building journey however
don't confuse financial iq for formal education while college degree may place
you in a strategic position for securing employment it's not a guarantee that you
can handle money tactfully some good habits that can help sharpen your
financial iq include reading money-oriented books tracking your
spending and working with professional financial planners sign number four you
understand the opportunity cost of saving money while saving money can make
a difference in your net worth restricting your focus on your savings
will cost you a fortune in the long run having lots of savings isn't a
determinant of achieving financial success when you save without investing
you're limiting your financial growth to the mediocre interest rates that come
with most savings accounts for instance let's assume you put ten thousand
dollars in a savings platform that yields one percent interest today one
year from now your money will have accumulated to ten thousand one hundred
dollars or ten thousand plus a hundred dollars interest you earn to be honest
this is peanuts compared to what you have gained if you chose to invest this
amount in the stock market currently the average annual rate of return in the
stock market is about ten percent this means that if you had invested ten
thousand dollars in an s p 500 index fund with a rate of return of about 10
percent your money would have accumulated a profit of a thousand
dollars i see in their comparison by choosing to save money in a low interest
savings account you missed out on 900 which is the opportunity cost in this
scenario the takeaway here is that as you save money the end goal should be to
invest the funds that generate significant returns sign number five you
don't gamble you invest there's a thin line between gambling and investing and
those who know where to draw this line have a fat chance of squaring big with
their finances these concepts become even more confusing when you hear people
using phrases such as investing is a gamble but is it really well if you're
an experienced investor you inherently know that gambling and investing are
night and day while gamblers are powered by excitement and greed real investors
know what they're doing and are goal oriented intelligent investors are
skilled enough to follow a strategic system in all their trades unlike their
gambling counterparts investing ceases to become gambling when you take the
time to learn the market instead of letting other people's investment
decisions influence yours also investing requires patience lots of it on the
other hand gambling is based on spontaneity often leaving no chance for
bouncing back from a loss i'm sure you've heard of cases where investors
who own stocks for decades finally became millionaires thanks to their
patience most gamblers can't hold onto stocks for this long hence most lose
money on a one-time deal this is the importance of educating yourself before
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involves sheer luck investing leans on a combination of three things financial
skills emotional intelligence and of course luck sign number six you avoid
debt unless it makes you money debt is a burden that can slow your journey to
financial success once you master financial discipline you'll know how to
budget your money and live below your means saving you from unnecessary
borrowing however one question that's worth asking is this is that always a
bad thing the answer is it depends it depends on the reason behind the
borrowing if you're taking a loan to purchase a depreciating asset like a car
then yes this type of debt is wrong and deserves to be treated as an enemy if on
the other hand you're borrowing to purchase an appreciating asset grow a
business or pay off high interest debt don't fret you're actually on track to
becoming the next millionaire in town unfortunately delineating good debt from
bad debt is often not as simple as you may expect some forms of debt are
perceived as being good yet the returns they bring in don't match the cost of
servicing said debt a good example are student loans if you're graduating into
an uncertain job market that's laying off more people than it's hiring i
highly doubt you'll be able to keep pace with the interest rates in your student
debt so what's the best parameter for deciding between good debt and bad debt
the only way is to ask yourself whether the benefits are worth the burden that
comes with the debt if it's a business don't borrow a massive amount for a new
business you can't be sure your business idea will generate profits before you
test your idea in the market if you incur losses you have to pay back the
loan with interest despite not gaining anything from it as for student loans
it's wiser to borrow for a student loan if you intend to pursue a fast growing
career path or if you're paying half your tuition fees by yourself the bottom
line is uncontrolled borrowing of either good or bad debt will land you in a
ditch but when used properly it can be a tool you can employ to aid in your quest
for greater wealth sign number seven you spend money for yourself and not for
others anyone that breaks free from the chains of public perception is destined
for success if you look around you'll come across specific individuals that
spend money to please others there's even a term for it which is keeping up
with the joneses and it better describes the habit of spending money due to
external pressure unfortunately we live in times where your ability to spend
money is seen as a marker of financial stability anyone who parades their
recent expensive purchases on social media automatically earns a vast flock
of followers yet most people fail to realize that when you let other people
influence your spending you're giving them power over your long-term net worth
as well how is this you may ask the thing is public approval is like an
intoxicating drug the desire to keep up with social pressures can quickly morph
into an addiction that completely shuts down your finances inevitably people
pleasers end up exceeding their budgets because they badly want to own a car
that their neighbor owns or buy a house that a particular celebrity previously
owned and we all know how these stories end debt auctions and possibly losing
the approval of the same people they sacrificed all their money for in the
long run this kind of lifestyle is unsustainable damaging and launches your
success further away in fact if you really want to start getting head
financially then you want to watch this next video where i share with you the
best millionaire habits that will have your wealth exploding overnight click on
over and let's get started