Which Factors Play the Greatest Role in Determining Wealth?

determine-wealth

By Alan Olsen

For most people, becoming rich is just a dream. Most people simply hope or wish to become wealthy, but never actually achieve this dream. If given the chance, everyone would choose to be wealthy, right? Who’s going to turn down huge amounts of money? But obviously, there’s a big difference between wanting to be wealthy and actually being wealthy. So what sets wealthy people apart from the rest of the world? Why do such a small percentage of people become wealthy? What’s their secret?

Wealthy Share Common Characteristics
Many studies have been done regarding the wealthy and what makes them successful? And after countless research, it really all boils down to a few simple factors. You can call them wealth factors. According to a study from the Affluent Market Institute, “The Next Millionaire Next Door: Enduring Strategies for Building Wealth,” if you possess these few attributes you might be more likely to become rich. So what are these characteristics or behaviors?

Confidence – wealthy people have confidence. They’re confident in themselves, in investing, and in their financial management and abilities. They trust themselves to do things right with their money, and they usually do.

Focus – wealthy individuals are very focused. They set their goals and they establish a plan to see their goals through to completion. They don’t get distracted by other things or lose their focus on the end goal. They stick to it until the job is done.

Frugality – obviously, wealthy people have to be smart with their money. They don’t get wealthy by mindlessly blowing it on random things. They’re careful with their budgets. They spend less and save more. In the end being frugal is one of the most important factors in helping someone achieve financial independence.

Responsibility – the research found that wealthy people also take responsibility. They don’t blame others when things go wrong. They understand and accept that ultimately they’re responsible for their own outcomes. It’s their money and they don’t allow things to be determined by chance, or luck.

Planning – Planning goes hand in hand with being focused and taking responsibility. Wealthy people plan ahead. They never stop evaluating their plan and adjusting it when necessary. They set their goals, make their plans to achieve them, and then stay focused until they succeed. And again, they take responsibility for their outcomes because they came up with the plan. They don’t blame others if their plans don’t work out. Instead, they learn and then create a new plan.

Social Indifference – how many times have you felt like you had to have the latest and greatest thing? It could be the newest smartphone, or an amazing car, or some other exciting new tech gadget. The problem is, when you allow yourself to be influenced by others, you let others dictate your actions. Wealthy individuals don’t let the latest trends determine their actions. They aren’t swayed by popular culture and they don’t feel pressure to buy things just because everyone else does. They stay true to what they know works instead of following every “next big thing.”

Posted in

What Happened to California’s Tax Revenue in May?

Where has all of California’s money gone? Ok, so the state isn’t bankrupt or anything like that, but according to recent reports, the state’s tax revenues fell short by 5.5 percent in the month of May. That marks the first time in six months that California’s revenues have not reached expectations. In fact, that 5.5…

Beware the Pump: Another Gas Tax Is on the Way

If you’ve had enough with California’s high gas prices, then you might not want to keep reading, because just when you thought things couldn’t get any worse, they are about to. That’s because when 2015 rolls around California residents are going to have to pay another new gas tax. In fact it’s a double-digit hike…

Try These Five Tips For Tax Savings in 2014

Everyone loves to save on their taxes, especially since it seems like the government never runs out of ways to add to American’s tax bill. So let’s discuss some helpful tips to reduce your tax bill. Although it might be too late to implement these ideas for last year’s return – unless you file an…

Retirement

As Property Values Soar In California, So Do the Tax Bills

When it comes to taxes, sometimes it seems like if it’s not one thing, then it’s another. During the recession, when the housing market was taking a hit due to dropping property values, county tax assessors across the state actually dropped property tax bills in effort to help homeowners. However, now that the state’s economy…