Two elements are required for achieving success in some of the most important life activities. These elements are knowledge and behavior. Knowledge is not everything in achieving success. However, when you know what to do, you are half way there but you also need the right action to achieve the desired success.
A good way to illustrate this is a job. My qualifications may show that am very knowledgeable and highly experienced in my profession but I might be lacking in some behavior such as organization and communication skills. This reduces my chances of career advancement.
The same applies to financial success. There are lots of information on managing your finances but you need the right behaviors to transform the knowledge into a successful result. To understand the best behaviors, you have to take a look at the habits of people who are financially successful. I have taking some resources from Millionaire Next Door written by Tom Stanley and William Danko and from Emotional Intelligence written by Daniel Goleman as well as from my observations and experiences. Below are some of the behaviors common with the financially successful.
- Targeted to a defined goal
Financially successful people keep their eyes fixed on the prize. The goal is financial independence and clearly it is a long term goal which needs focus. Thus they concentrate their actions and financial decisions to achieve it.
- They are organized
Up to 60 percent of American millionaires are self-employed. Some of them are also business owners. They all apply the same secrets that drive their business to success to their personal lives as well. They not only set a defined goal, they also set a financial plan and fix its deadline. They have ordered process to examine how much of these goals they achieved.
- Open mindedness
Financially successful people have open minds. They understand that circumstances can change. They know that we may be faced with unforeseen circumstances and therefore they do all it takes not to take bad decisions and to avoid giving wrong judgments in an event. They learn from their mistakes and correct them and ultimately move ahead to a greater level.
- They are always ready to take action
Financially successful folks love taking decisions and actions. They can try various approaches should their first approach fail to solve a problem. They might even move some steps forward and backwards but ultimately they achieve success in the end of the day. They are not afraid to make a mistake.
- They are frugal
Stanley and Dako’s profile of Millionaire prototypes outlined this as the behavior commonest to them. They live below their means, wear inexpensive suits and drive local made vehicles. Only a few of them drive expensive and current vehicles. Contrary to other people, the expenditures of the financially successful do not increase as their income increases or at least the expenditures do not increase immediately.
- They love teamwork
Couples with split financial personalities because of financial differences face financial and emotional disarray. This does not typify financially successful households. One of the couple in such households is the breadwinner and the other partner is a careful planner. In many cases, their spouses are more conservative with money than they are. This is achieved with communication and teamwork rather than conflict.
Persistence is an important principle for success. Financial success is a long term activity and of course, you will face hindrances on your way. You need self-control, self-motivation and patience to overcome them.
Can you evaluate yourself and find some or all of these features in you. The good news is that these habits can be developed. You need team work including your spouse, other people, tools, resources, financial advisors and so forth to develop them. Your family, friends and colleagues can as well help you during financial difficulties as you journey to financial success.
October 23, 2016