Stop Idolizing Rich People

In a world that often glorifies wealth and celebrity, it's time for a reality check.

The truth is, rich people are not gods—they're just people who have developed certain habits that set them apart.

As a millionaire with a passion for helping everyday people achieve financial independence, I've identified five crucial rules that can transform your relationship with money.

Let's dive in!

Rule 1: Do an X-Ray on Your Finances

The first step toward financial literacy is understanding your own financial situation.

You can’t manage what you don’t understand!

Many people feel guilty for spending without knowing where their money is going.

"Rich people who are savvy with money have a clear understanding of their finances; they know exactly where their money is going."

Here are the seven essential questions you should be able to answer about your finances:

1. How much do I make? Surprisingly, many people don’t even know their household income.

2. How much do I owe? Know the exact month and year you will be debt-free.

3. What percentage of my income am I saving?

4. What percentage am I investing?

5. What percentage goes towards housing?

6. What do I want to spend more or less on?

7. What are my deeply held beliefs about money?

By understanding your financial landscape, you gain the power to make informed decisions.

Rule 2: Make Systems for Everything

The second principle revolves around efficiency.

"You need systems"

Instead of relying on your willpower, automate your finances:

• Set up automatic savings and investments. This means your savings grow without you having to think about it.

• Automate bill payments. Why waste your time manually paying bills when a computer can handle it seamlessly?

This removes the burden of daily decisions and frees up mental space for you to focus on what truly matters.

Rule 3: Plan Before You Need to Plan

Planning is essential for financial success. Rich people think ahead: "They plan for something before they need to think about it."

Rather than worrying about saving a few dollars here and there, ask yourself critical questions:

• What does your rich life look like?

• Do you have a 3-6 month emergency fund?

• How will you save for significant goals, such as buying a house or taking a vacation?

Creating a detailed financial timeline gives you direction and minimizes panic when unexpected expenses arise.

Rule 4: Follow the 80/20 Principle

The fourth habit involves focusing on what really matters.

The 80/20 principle, encouraging you to focus on the 20% that drives 80% of your results.

For example, instead of obsessing over minor expenses (like whether your coffee is $3 or $5), redirect your attention to more impactful decisions, such as:

• Finding a good job that pays well.

• Ensuring your housing costs are manageable.

This shift in thinking can significantly enhance your financial health.

Rule 5: Consider Value Over Cost

Lastly, it’s vital to focus on value rather than merely cost.

"Rich people don’t just care about the cost of something; they look at the value"

For instance, are you willing to spend a bit more for a quality product that enhances your life—like hiring a personal trainer to improve your health?

Investing in things that create value can lead to growth in both your professional and personal life.

Final Thoughts

The financial habits of wealthy individuals provide a roadmap to success that anyone can follow.

By understanding your finances, automating your processes, planning ahead, focusing on what matters, and valuing quality, you can build a life of financial independence.

Remember, "if you are serious about getting rich, I'll give you the brutally honest advice you need to hear." 

Start implementing these strategies today and take control of your financial future!

Be Wealth Operator.