Why do the rich keep getting richer? Most of the time, it’s not
because of luck. It’s not because of the family they were born into.
It’s not because they won the lottery.
Wealthy people simply do things differently.
It may not seem fair, but the fact is the “income gap” is increasing and most financial experts only see this trend continuing with no end in sight.
In
preparation for this column, I sat down with someone who knows far more
wealthy people than I will likely ever meet: Jeff Rose. Rose is a
certified financial planner,author and blogger at
www.GoodFinancialCents.com, as well as a millionaire himself, who dedicates a good portion of his time to helping people become, and stay, wealthy.
I asked Rose why he thought the income gap was growing. He mentioned
five primary things that wealthy people simply do differently than the
rest of the world. Here are those five, in no particular order.
1. They take risks.
Rose
explains that the wealthiest people he works with routinely “throw
spaghetti at the wall to see what sticks.” In other words, they try a
lot of different things, knowing that a lot of it will fail.
They
take those risks because they know that failure is just part of the
process in discovering what will truly work to build more wealth.
Furthermore, as Rose explains, the rejection of those ideas invigorates
the wealthy into finding what will work, a stark contrast to most of the
population that simply looks at failure as a road block.
2. They invest in themselves.
According to Rose, “wealthy people don’t look at the money spent on personal growth as an expense, but an investment.”
While
many individuals conserve every penny equally, the wealthy understand
that strategically investing in themselves will produce a far greater
return than any stock, real-estate investment or business venture.
Whether
it’s purchasing a book, hiring a coach, joining a paid mastermind
group or another source of paid
self-improvement, the wealthy see this
as an investment. Do you?
3. They associate with those they want to emulate.
When
the human body gets too hot, it produces sweat in an attempt to cool
down. When it becomes too cold, it shivers to produce heat. In other
words, the human body is constantly adapting to keep its temperature at
the same comfortable spot. This automatic leveling is a biological
process known as homeostasis and is found in numerous aspects of life.
From
human biology to the temperature of the earth to a car’s cruise control
to the thermostat in your house, homeostasis is a fact of life that
governs nearly every aspect of your existence. And, as the wealthy have
discovered, homeostasis can also be a powerful way to build wealth.
As Rose stated bluntly to me, “If you want to be rich, hang around rich people.”
Or as financial TV personality Dave Ramsey often says, “if there are four broke people in a room, you’ll be the fifth.”
Wealthy
people have discovered that they can grow their wealth simply by
associating with those who are even more wealthy. Humans pick up the
habits and strategies of those in their immediate surroundings, and the
wealthy have learned to use this homeostasis to their advantage.
4. They have a dedicated morning ritual.
While
most of the world is hitting the snooze button 14 times in a row each
morning, the wealthy have already begun increasing their net worth.
“Most of the multi-millionaires I know have a dedicated routine, a ritual, that they do each and every morning,” Rose says.
This
morning ritual could include exercise, affirmations, goal reviews,
breakfast or whatever else helps them start their days with a bang. They
start strong, accomplishing more before noon than more people
accomplish in a week.
For those struggling to get started each morning on the right foot, Rose recommends two books:
In my own life, I've found this truth incredibly powerful. Since instituing a morning routine, I've quadrupled my income,written and published a bestselling real estate investing book,
lost 10 pounds, bought my dream house and deepened my relationship with
my wife. Not bad for just a few minutes each morning of dedicated
routine.
5. They review their goals consistently.
Finally,
according to Rose, the rich have clearly defined goals and continually
review them to track their progress, make changes and develop strategies
for meeting those goals. This process of immediate feedback allows the
wealthy to make quick changes to their plans to keep the course in a
rapidly-changing world.
While most of the human population gives
little to no thought on their futures, the wealthy are reminded daily of
where they are headed. Like a family taking a cross-country trip in
their minivan, the rich have their road map spread out on the dashboard
so they can navigate the fastest, easiest route to their destinations.
Rose
admits that the wealth gap is far more complicated than a simple
“five-point blog post.” However, he continually witnesses these five
traits guiding the lives of those who are getting richer and has used
them in his own life to create multiple businesses and build some
serious wealth himself.
These five actions create a
positive-feedback loop that will continue to make the rich richer, and
there's no sign of that ceasing. The good news is, however, these five
actions are all things that the average American can put into practice
today. Will you?
Written by Brandon Turner
Brandon Turner is a real estate entrepreneur and the VP of Growth at
BiggerPockets.com, one of the web’s largest real estate investing
communities. He is also the author of
The Book on Rental Property Investing,
The Book on Investing in Real Estate with No (and Low) Money Down and
several other books. Buying his first home at the age of 21, Turner
quickly grew his real estate portfolio to over 40 units using a variety
of creative finance methods. He and his wife Heather live in Grays
Harbor, Wash.He can be reached through www.twitter.com/brandonatbp
