But that doesn’t mean it can’t be done. It just means that people need to be mentally stronger and more resolute to hit those goals, especially their wealth goals.
Here are 6 financial habits of mentally strong people you can follow so that you can realize your money resolutions this year.
They Maintain a Positive Outlook Toward Their Finances
“My attitude has always been, if you fall flat on your face, at least you're moving forward. All you have to do is get back up and try again.” - Richard Branson
Mentally strong people subscribe to Branson’s notion that a positive attitude puts them in a position of control over their circumstances. They also apply this same principle toward their finances. In fact, research has shown that positivity is a hallmark of nearly all financially well-off individuals. You can follow in their footsteps too. Start by affirming out loud your financial goals for 2017. Remember, be specific and confident (for example, “I will successfully save at least 10% of my income.”). Voicing your goals with confidence is proven to help you better ingrain positivity into your brain and follow through on your plans. Once you have those positive vibes flowing, write down your goals, so that you can monitor your progress throughout the year.
They Surround Themselves with Others Sharing Their Vision for Financial Success
“Surround yourself with only people who are going to lift you higher.” - Oprah Winfrey
As the saying goes, “you are who you surround yourself with.” This is especially true for the mentally strong. People associating themselves with others who are trustworthy, motivated and share their vision for financial success, naturally develop mental toughness. Why? Because they expand their financial horizons by collaborating with like-minded people and end up being that much more confident with their money. Still not convinced? Read Thomas Corley’s Rich Habits: The Daily Success Habits of Wealthy Individuals. You might be surprised to find that over 85% of the rich in his study made a habit of associating themselves with other goal-oriented, success-hungry people.
They Dedicate Themselves to Lifelong Financial Learning
“I really had a lot of dreams when I was a kid, and I think a great deal of that grew out of the fact that I had a chance to read a lot.” - Bill Gates
Mentally strong people are voracious learners. That’s because they’re constantly hungry for knowledge and self-improvement. They actively strive to be better than the person that they were yesterday, and this translates into self-confidence and mental toughness. The same goes without saying for bettering themselves financially. Mentally tough people are always seeking ways to have their money work for them, not the other way around. Whether that takes shape in creating multiple streams of income or diversifying their portfolios, the mentally strong are relentless in honing their financial savvy. According to Corley’s research, 88% of the rich devote at least 30 minutes per day to self-education or self-improvement reading. You can join them too. Start flexing those mental muscles and get ready to learn!
They Keep Their Emotions Separate from Their Financial Decisions
“If you cannot control your emotions, you cannot control your money.” - Warren Buffett
We’re all human. Which means that it’s only natural that our emotions influence our decision-making process. Even though it’s impossible to completely separate our emotions from the decisions that we make, the mentally strong take to heart Buffett’s advice. One of the ways they’re able to do that is by summoning the counsel of trusted financial and investment experts, with whom they have established strong relationships (which refers back to my second point!). They understand that their financial mentors can help them limit risk, leverage turnkey solutions to realize their financial goals faster and help them prevent their emotions from getting a hold of themselves before making important financial decisions.
They Live Below Their Means
“Living below your means has always been a go-to strategy of mentally strong people. They know they have money to splurge with but aren't spendthrifts in their daily lives, they still want value for their money.” - Marsha Collier, best-selling author of 48 books, freelance author at John Wiley and Sons
Mentally strong people have the financial discipline to hold off on buying the latest luxury vehicle and not going on compulsive shopping rampages. It also means that they’re thinking long-term with their finances. By living below their means, mentally strong people are confident with what they have now and are able to envision the financial future that they are working towards on a daily basis.
They Pay Themselves First
“In order to be rich, you must have the self-discipline to pay yourself first. By this, I simply mean using your income to invest in cash-flowing assets before you pay your bills or buy anything fun. This, in turn, will create more income that you can use to invest in more, cash-flowing assets. Do that and you'll have more money than you know what to do with.” - Robert Kiyosaki, Rich Dad author
Paying yourself first is one of the most crucial pillars of personal finance. And mentally strong people abide by it. Before buying groceries, paying the electric bill or spending on anything else, they set aside money for their future. They do this because they know that an investment in themselves is a gateway to a secure financial future and are mentally tough enough to abstain from making unnecessary purchases that may “feel good” in the now. Some tangible ways that they pay themselves first are by funding their 401(k) accounts to the max and making it a habit to not only save a portion of their income but also invest that income into a well-researched portfolio that continues to grow as time passes.
Now that you know the financial habits of the mentally mighty, what will you make of 2017? And always remember that you’re not alone on your financial journey - we’re here to help. I wish you a peaceful and successful 2017!