“The more you learn, the more you earn.”
– Warren Buffett
What are the wealth habits that make people wealthy?
How do people actually maintain and grow wealth?
I have interviewed over 2,500 high-net-worth individuals.
In these interviews, I’ve discovered some secrets that get to the bottom of this.
These secrets go beyond studies on the wealth cycle.
According to this article in Tailored Wealth Management, wealthy people have habits of saving, frugality, and work ethic.1
But there are simpler steps you can take to get started growing your wealth.
Let’s jump into it!
1. Lifelong Development
Very few people actually inherit wealth.
Some statistics show that only 14% of people inherit their wealth.
That leaves 86% of wealthy people earning that title themselves.
Because of this, I think the first step on your journey is also the longest:
Lifelong education.
Educating yourself is a part-time job.
I’ve made a personal commitment to reading books.
I’ll read physical books as well as audiobooks.
When you regularly read, you stay updated on what’s happening in the market.
You can also consume podcasts, YouTube series, and magazines.
I personally love books because I feel like they give a broader perspective.
The return on your learning and your investment knowledge with books is incredible.
This knowledge extends beyond investing as well.
According to this study, there is a correlation between reading and health benefits.
Reading can benefit brain function and enable readers to be more insightful.2
This is due in no small part to how long books take to write.
It took me hundreds of hours to write my book, Fire Yourself.
Other books take thousands of hours to write.
When you read, you are absorbing all of those hours of commitment from the author.
That’s pretty inspiring!
2. Skill Development
The second secret to developing a wealth mindset is skill development.
You should invest in training and courses.
Develop new investment strategies.
Beyond skill development, there’s also mindset development.
It’s a skill to believe in yourself, especially if you didn’t before.
As a bit of a personal example, I went through a divorce seven years ago.
While I was in the thick of it, I really felt no sense of self-confidence.
I eventually created affirmations.
I would say things like:
“I’m a strong, confident person.”
“I walk in and I own the room.”
“I’m valuable, I’m loved, I’m chosen.”
I know this sounds cheesy!
But it really worked for me.
Those words helped create behaviors that I lacked.
The shift didn’t happen right away, but instead over time.
Brené Brown talks about the idea that people who achieve great things are able to receive great things.
The only difference between them and other people is that they found a way to feel worthy.
They found a way to believe they actually could do what they needed to do.
It’s a skill to change the way you think.
I encourage you to look into affirmations, even if you think they’re a little cheesy!
They might end up helping you a lot more than you think they will.
3. Mentorship and Networking
The last secret to developing a wealthy mindset is mentorship and networking.
You need to get around people who are at the next level.
There’s a saying that goes when the student is ready, the teacher appears.
I was ready when I was investing in single family.
I found a mentor who was doing multifamily.
At the time, I really wanted to get into that space but didn’t have the money.
My mentor told me I could raise the money.
That’s when I learned about large-deal syndications.
The idea of networking is huge.
I cannot stress this enough.
According to this study by Sustainable Networking for Scientists and Engineers, networking can even increase knowledge.
This makes networking itself an investment in your career.3
If you want to change your net worth, you’ve got to change your network.
You’re the average of the five people you spend the most time with, according to Jim Rohn.
Charlie “Tremendous” Jones says “You will be the same person in five years as you are today except for the people you meet and the books you read.”
The books you read are a form of education.
The people you meet are a form of networking.
After reading a book, you can learn a new skill
A new connection can open new doors.
This is why I made learning my part-time job.
It develops into long-term growth for me.
You won’t see change happen immediately.
But over the long term, I’ve seen it happen!
Now I want to hear from you.
What are you doing to grow your wealth mindset?
Let us know in the comments!
Before you leave, make sure to check out our special report about inflation investing. It shares the best choices to invest during an inflationary environment.
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Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.
Works Cited
1. N. Gannon. “The Wealth Lifecycle: From Building It to Passing It On.” Tailored Wealth Management (2019). https://doi.org/10.1007/978-3-319-99780-3_6.
2. L. Kourkouta, C. Iliadis, A. Frantzana and Vakalopoulou. “Reading and Health Benefits.”, 3 (2018). https://doi.org/10.4172/2472-1654.100149.
3. Christina C. Willis. “Sustainable Networking, and Why You Should Do It.” Sustainable Networking for Scientists and Engineers (2020). https://doi.org/10.1117/3.2535500.ch1.
