7 Habits of the Financially Successful

If you think about it, achieving success in some of our most important life activities requires
two key ingredients: knowledge and behavior. Knowledge by itself isn't enough; knowing
what to do only gets you halfway there. ou also need to follow through by taking action.
!ake a "ob, for e#ample. $n paper I might be an e#pert at my profession. %ery
knowledgeable. &ut if some aspects of my behavior are lacking ' say, weak organi(ation
or communication skills ' and they lead to poor or failed e#ecution, then my chances for
rapid career advancement are slim.
!he same holds true for financial success. !here's certainly no shortage of information and
advice on managing our finances. &ut what are the behaviors that contribute most to
turning that knowledge into successful results) * good place to look is among people who
are financially successful.
!o help identify these behaviors, I've drawn from +!he ,illionaire -e#t .oor+ by !om
/tanley and 0illiam .anko, from .aniel 1oleman's +2motional Intelligence,+ and also from
my own e#periences and observations. 0hat did I find) !he financially successful tend to
have seven behaviors in common.
1. They Are Goal Oriented
*s the e#pression goes, they +keep their eyes on the pri(e.+ !hat pri(e is financial
independence. It requires a longer term perspective and the ability to focus all their
financial decisions and actions on achieving it.
2. They Are Organized
*ccording to +!he ,illionaire ,ind,+ about two3thirds of *merica's millionaires are self3
employed or business owners, and they apply the same organi(ational tools and methods
that make their businesses successful to their personal finances. /o not only do they set
specific, measurable financial goals, but they also develop a plan ' a financial plan with
deadlines ' and they establish an organi(ed process for reviewing progress against plan.
3. They Are Oen !inded
4ife happens, which means circumstances change. 0e're all confronted with unforeseen
events, and as much as we try not to, we also mis"udge some situations and make bad
decisions. !he financially successful understand and accept this. !hey're quick to
acknowledge change and to recogni(e, learn from, and correct their mistakes.
". They Are Action Oriented
!he financially successful are comfortable with making decisions and taking action. If one
approach doesn't solve the problem, they try another one. /ometimes it's two steps
forward and a step or two backwards, but in the end there is progress. &y contrast, fear of
making a mistake leads to fear of making a decision, and that rarely moves you forward.
#. They Are Frugal
!his is perhaps the most common behavior of all, as reflected in /tanley and .anko's
profile of the typical millionaire: +0e live well below our means. 0e wear ine#pensive suits
and drive *merican3made cars. $nly a minority of us drive the current model3year
automobile. $nly a minority ever lease our vehicles.+ Instead they pay off vehicles quickly,
keep them for years, and use the freed up cash flow to get further ahead.
Importantly, as their income increases their e#penditures do -$! 5or at least, not as
quickly6. In other words, they don't fall into the +make more, spend more+ trap.
$. They Are Tea% Oriented
.o you know any couples with split financial personalities) 0hile one is a model of
frugality, the other is a poster child for e#travagance. 7esult: 8inancial 5and emotional6
disarray.
-ot so among financially successful households. !hey typically have a primary
breadwinner, but the spouse or other partner is, according to /tanley and .anko, +a
planner and meticulous budgeter.+ *s one millionaire stated in a focus group, +,ost of us
will tell you that our spouses are a lot more conservative with money than we are.+ It's all
about communication and collaboration, not conflict.
7. They Are &ersistent
4ast but certainly not least, ultimate success requires perseverance. *chieving financial
success is a long term activity; it's a marathon, not a sprint, and there will be obstacles and
setbacks along the way. $vercoming them requires self3control, self3motivation, and
patience. /low and steady wins the race.
Is !his 9ow ou &ehave)
*ll of this leads to a question: 9ow many of these seven behaviors do you have)
!he good news is that it's not an all3or3nothing proposition ' that you either +have+ these
behaviors or you don't. 7ather, we all have the ability to develop each one. /ure, some of
us need to develop certain behaviors more than others. !hat's $K; the place to start is by
becoming more self3aware of our weak spots:of the behaviors needing the most
development.
9ere's some more good news. ou don't have to go it alone. !his is a team effort ' and
you're not limited to "ust a two3person team. In addition to your spouse or partner you have
many other people, tools, and resources at your disposal. 8inancial advisors can assist
with setting goals and guiding decisions. /oftware is available to organi(e the effort and
help you manage your progress against goals. *nd you can lean on a support network of
family, friends and colleagues to see you through the disappointments and setbacks on
this "ourney to financial independence.
8or more information, please visit our 0eb site at https:;;www.cashflownavigator.com;