Financially Successful People

HOW DO FINANCIALLY SUCCESSFUL PEOPLE ACTUALLY LIVE?

Most people imagine that financially successful people live a life of indulgent wealth. As a result of growing up watching movies and television shows, millions of people have the unrealistic idea that those who are financially successful live a lifestyle similar to Donald Trump or anyone featured on “Lifestyles of the Rich and Famous.”
These television series and movies project a vision of financial success that is based on pretence,
illusion, living on credit, and the basic premise of “fake it till you make it!”
These programs and many accompanying articles in magazines present the concept that the key to achieving financial success is to present yourself as a financial success until you finally achieve the desired success.
This concept suggests that you should emulate the lifestyle of the “rich and shameless” using easily available credit until you finally achieve the financial results that will allow you to pay for such a lavish lifestyle.
However, experience reveals that this is a recipe for financial disaster.
One of the most fascinating and insightful books ever written about the actual lifestyles, decisions, habits, and character of Americans who achieve true financial success is titled The Millionaire Mind.
Dr. Tom Stanley examined and reported on the characteristics of those who actually achieved financial independence.
The majority of Americans imagine that millionaires spend every dollar they earn and maximize their credit cards and lines of credit to live lavishly. However, to his surprise, Stanley discovered that the vast majority of American millionaires lived quiet conservative lives that were typified by high-quality houses, cars, and vacations that were far less costly than these people could have afforded.
Stanley discovered that there were two very different types of wealthy Americans. The first is a group that chose a lavish, credit-supported financial lifestyle far beyond their true economic resources.
They borrowed money to finance a lifestyle based on their psychological need to impress themselves, their friends, and their neighbors.
These people were characterized by high income, huge debt, and low net worth. The second group was made up of those who quietly and unobtrusively accumulated a fortune by living a lifestyle that cost far less than they could actually afford. This enabled them to build a solid financial base that would support their future life.
These truly wealthy individuals are characterized by high income, little or no debt, and very high net worth.
Comparing the two groups, we see that excessive use of credit is the
leading threat to your attaining financial independence.
This principle can apply to anyone, not just those making six-figure incomes. Anyone living beyond their means needs to examine their financial status and be honest with themselves about what they can afford.
The inability to admit to friends and family that you need to “downsize” your lifestyle to minimize debt and to gain control of your life financially is one of the main impediments to making the vital changes that are essential to gain control of your life and begin the process of financial healing.
Goals are just wishes unless they are written down.
When you write down your goals, it solidifies them and allows you to commit seriously to their accomplishment. When you write out your goals you psychologically commit to them as something that you are prepared to devote serious effort to accomplish.
Prime Minister Winston Churchill is famous for his bulldog-like tenacity of purpose that inspired England to stand firm against the Nazis during the darkest days of World War II.
Churchill wrote: “Success is not final, failure is not fatal: it is the courage to continue that counts.”