8 Habits of the Financially Independent

one hundred million dollars

Reduce Stress How to become Financially Independent

One thing that can truly stress yourself and your relationships and your health is a lack of money in your pocket to create the daily lifestyle you desire.

Over the years from the many books I have read like The Millionaire Next Door by Thomas J Stanley and recently MONEY Master the Game by Tony Robbins (plus what I have learned from many mentors) I have seen a consistent trend in the habits of self made financially independent people and I have adopted these habits.

Note: I write many of my articles to clarify my experiences and share life lessons with my children. I hope you benefit from this article as well.

Financially independent people have they following habits:

One
They don’t look wealthy
You will NOT recognize them from their jewels or expensive cars. I just saw a photo of Mark Zuckerberg driving his personal car a VW Golf.

Two
They buy quality to save time
Financially independant people prefer to have a small amount of quality items such as clothing rather than a large amount of clothing that wears out quickly. The time to go shop is seen as a waste of time. They will even buy two sets of the same shoes so they don’t have to shop for shoes again for a long time.

Three
They live in established quality neighbourhoods
One wise move pointed out in The Millionaire Next Door is the habit of the financially independent to live in a neighborhood where there is the best public schools to avoid paying for private schools.

Four
They have many streams of income
Financially successful people make sure they keep and increase their wealth from many sources of income, be it savings, real estate, direct work income and other investments. This helps protect their financial independence.

Five
They have a financial plan
They know how much money they have and they plan how they use it knowing how much they have for food, fun and everything else they need.

Six
They avoid losing money
Financially independent people don’t invest in a possible outcome. They invest when they feel assured there is a positive result.

Seven
They spend less than they earn
Financial independence comes from this simple rule that many people do not follow. Even people on a lower income can become financially independant over time when they spend less than they earn and invest wisely what is left over.

Eight
They do not buy or build themselves a new home
They buy quality homes in need of some renovation in established neighborhoods and they avoid selling them. Think of how long Warren Buffet has lived in his home.