Develop the Habits of Wealthy People
With regard to your growing bank account, millionaires develop a series of other habits to assure that they don’t lose money, and that their money grows steadily over time. One of the best habits you can develop is the habit of getting good financial advice before you do anything with your growing account. Ask around and find a financial advisor who has already become financially successful by investing his or her personal money in the areas that he or she recommends to you. Your ability to choose excellent financial advirosrs can be the critical factor in making good investment decisions.
Develop the habit of investigating before you invest in anything. The rule is, “Spend as much time investigating the investment as you spend earning the money that you are thinking of investing.”
Fast financial decisions are usually poor financial decisions. Develop the habit of taking your time, or moving slowly, of finding out every detail of the business or investment before you think of writing a cheque. Never allow anyone to pressure you into an investment decision. Never allow your to feel that a financial investment decision is urgent and must be made immediately. A wealthy man once told me, “Investments are like buses; there will always be another one coming along.”
Sometimes, the best investments are the ones you never make at all. Make a habit of thoroughly understanding the investment before you ever think of parting with your hard-earned money. If there is anything that you do not understand or which seems too complicated for you, do not put your money in that area at all.
Warren Buffet, one of the richest men in the world as the result of this investing acumen, refused to invest in any of the high-tech or dotcom companies during the boom of the 1990s. Everyone accused him of being out of step and old fashioned. He simply replied, “I don’t understand these business and therefore, I will not put any of my money into them.” He turned out to be right, and all the others turned out to be wrong.
1. Do Your Homework
An important habit for financial success is the habit of carefully considering every expenditure before they make it. This involves getting as much information as possible on the various prices and costs involved in any financial decision. The power is always on the side of the person with the best information.
Develop the habit of negotiating more effectively to get higher prices when you sell and lower prices when you buy. A good negotiator can save or gain 10 percent, 20 percent, and more on every financial transaction. Each dollar saved or gained is additional money that you can put away to accumulate and grow in your financial fortress account.
Develop the habit of asking for higher prices when you are selling and asking for lower prices when you buy. Ask for lower interest rates. Ask for better terms and conditions. Ask for immediate payment when you sell and ask for deferred payment when you buy. Ask repeatedly. Ask pleasantly. Ask courteously. Ask expectantly. Ask confidently. But don’t be afraid to ask. Ask for what you want, and if you don’t get it, ask for something else.