5 traits and behaviors that can help you build long-lasting wealth
The rich of the world have more than just their ballooning net worth in common. There are certain traits and behaviors that they have in common as well. In a study published in a major journal of psychology, researchers found common traits in a group of rich people, people having a net worth of above a million euros in this study.
Now, even though all of us define wealth and success differently, most of us largely associate them to our net worth. “Wealth consists not in having great possessions, but in having few wants” said the famous stoic philosopher Epictetus. As wise as it may sound, it’s not very realistic when you live in a capitalistic society.
So, you want to get rich, but aren’t exactly sure how. A good starting point can be to learn from those who have already done it. Thomas Corley, author of the book ‘Rich habits Poor habits’, studied 177 self-made millionaires to identify 6 common traits and behaviors amongst them.
Here are some of those traits and a few others, which I believe are especially helpful, that can help you accumulate wealth:
Long-term thinking
The best possible example I can give you about the results that thinking long-term and executing accordingly can bring you is of a janitor who amassed $8 million by the time he was 92 years old. Ronald read’s story is a testament to the fact that you don’t need to have massive income streams to become a millionaire.
Unfortunately, though, in today’s world of instant gratification, the charm of overnight success is greater than ever. Many of us are looking for that “Eureka!” moment to find success. However, as Angela Duckworth, in her book ‘Grit: The power of passion and perseverance’, says:
“Superlative performance is really a culmination of numerous ordinary activities, which are done consistently and correctly to produce excellence.”
Interviewing top performers from diverse fields, from Olympic medalists to Nobel Prize winners, Angela found that their daily routines were filled monotonous tasks that we all dread. There was nothing glamorous about these peoples’ everyday lives. But, their ability to keep on with these simple, but important, tasks for long periods of time helped them get to the ultimate moments glory.
This is also why Warren Buffett is such a huge proponent of investing with a long-term horizon. Incorporating this simple shift in mindset can help you take your net worth to the next level, if that’s your goal.
Optimism
This one is a given. If you don’t believe that the future is bright in the longer-term, why would you make any effort, or take certain risks? The wealthy are creative visionaries with a can do attitude. In other words, wealthy people have big dreams, and they believe they will come true. As such, wealth seekers set lofty goals and know that failure is inevitable on the journey to success.
As one of the most recognizable names in inventive history, Edison’s numerous innovative ideas and creations are legendary. He held more than 1,000 patents, a record only broken very recently, and developed ground-breaking technologies like the electric light bulb, phonograph, batteries, and so much more.
But despite his outstanding success, Edison failed frequently. In fact, it sometimes took thousands of attempts — literally — to perfect his experimentation. That was exactly the case when Edison was working to devise a storage battery. According to his close friend Walter S. Mallory, Edison had already tried 9,000 experiments and hadn’t yet found a solution. When Mallory commented about the lack of results, Edison promptly responded, “Results! Why, man, I have gotten lots of results! I know several thousand things that won’t work!”
In Corley’s survey, the group’s outlook towards future growth skewed more towards positive than negative. One in five surveyed kept more than 25 percent of their assets in cash, in large part to buy when others would sell out of fear.
In the context of investing when markets drop, Warren Buffett famously said:
“Be fearful when others are greedy, and be greedy when others are fearful.”
Working well with other people
No one achieves anything worthwhile on their own. You’d always need to work with others to scale the impact of your work. The ability to engage with others, to build relationships, to motivate and inspire, and to genuinely connect is definitely important.
While extroverts can be naturally good at building relationships, communicating their ideas, and feel energized by taking the center stage, introverts might dread such situations. Does that mean introverts can’t be successful? Definitely not.
Mahatma Gandhi, Bill Gates, Mark Zuckerberg, Rosa Parks, and Steven Spielberg are a just a few of the names known to be introverts, but having achieved extreme success. In her groundbreaking book ‘Quiet: The Power of Introverts in a World That Can’t Stop Talking’, Susan Cain explores the various ways that introverts can contribute in an extroverted world.
“Of course, some introverts find it particularly difficult to switch modes. But it has been shown that a number of them, especially when they want to achieve something important, can overcome their introversion for a short period of time and act extroverted.” — Susan Cain
So, if you feel dreadful interacting with other people, but such interactions are important for achieving your vision, you can start by intentionally exposing yourself to social environments. Be sure to find some quiet to recharge afterwards, though. Gradually, you will become a master of seamlessly ‘switching on your extrovert mode’, so much so that people will find it hard to identify you as an introvert.
Independent thinking
Now, this might sound counterintuitive given the last point. It’s important note here that working well with others doesn’t need you to adopt herd mentality. You simply need to know how to get things done from others. Exactly knowing what you want out of an engagement will in fact make you even more effective in influencing others.
Independent thinking doesn’t mean doing the opposite of what the rest of the world is doing either; it means having the courage to follow what is important to you. Often, an urge to remain silent to feel safe is what makes people vulnerable to groupthink, which can discourage originality or accountability.
Jeff Bezos wouldn’t be the wealthiest person in the world if he had been too timid to think of selling stuff online, with delivery time of just a few days. It’s often the seemingly boldest ideas that create the most value.
Life-long learning
Learning doesn’t necessarily have to come through formal education. In fact, some of the most powerful learnings can come long after college is over. As Corley found through his study:
“Eighty-eight percent of the wealthy in my study, long before they struck it rich, formed the daily habit of engaging in 30 minutes or more of self-education reading. This single, simple daily habit alone helped them to increase their cognitive abilities, which contributed to their success much later in life.
The more mentally active you remain, the healthier your mental functioning in old age. Researchers found challenging your brain with mental exercise can activate processes that help maintain individual brain cells. Whether you have a job that keeps you learning, pursue new hobbies, or a learn a new skill, engaging in mentally challenging activities can contribute immensely towards your overall health. And the longer you live, the more powerful the effect on compounding on your investments.
Final Thoughts
Accumulating substantial wealth is not a goal that can be achieved overnight for most people. Many of the world’s richest people have built their wealth over many years, decades, or even generations by making smart and often bold decisions, learning consistently, and doggedly pursuing their vision. If you can learn anything about the wealthy, it’s that for many of them, their riches are rarely what most sets them apart from the rest of the world — it’s how they lead their daily lives that really stands out.
