8 Financial Habits Of Successful People

by Magical Penny on February 24, 2017

We all know someone in our lives who seems to have ‘made it’. They enjoy a good quality of life and, certainly on the outside, they appear happy. It’s unlikely these people have stumbled on a magical formula, and there may be many reasons for their success. However, many successful men and women have similar financial habits that have contributed to their achievements.

  1. They Know What They’re Entitled To

Successful people are extremely savvy when it comes to working the system. They know exactly what they are entitled to. They have realised their PPI claims and are familiar with tax laws and use them to their advantage. If they’re unsure about anything, they do their research and put in the legwork. They stay within legal boundaries but make it work for them.

  1. Save pounds as well as pennies with a budget!They Save

Success rarely comes overnight, and for most people, it is due to hard work. From an early age, they get into the habit of saving money. This may have been a small percentage each month that built up over time. When their income increased, so did their savings. Even during times of hardship, they set aside a small amount each month.

  1. They Mitigate Risk

Financially savvy people work hard to manage risks. This doesn’t mean that they are risk averse, it means that they are smart with their money. They don’t put all their eggs in one basket and set limits on investments.

  1. They Remain Current

Save money nowThe world of business and finance changes constantly. In fact, the only certainty is that things will change. It is, therefore, important to keep up-to-date with new legislation and trends. Smart investors keep abreast of lucrative opportunities.

  1. They Negotiate

People who have prospered in their careers or through their investments have done so by seeking out the best deals. They don’t accept the first offer but negotiate to achieve the best possible outcome. This isn’t focused entirely on their working life; they use it in their personal life too. For example, they research the best energy providers to obtain the best price. And they shop around first before making a purchase.

  1. They Act Quickly

Being well-informed allows you to act quickly when opportunities present themselves. Because you’re familiar with the market and the pitfalls, you don’t waste time deliberating over decisions. That said, they don’t act impulsively. Any financial decision that is made is done so through careful planning and research.

  1. ImportantThey Set Objectives

Smart people set SMART objectives. The SMART acronym stands for specific, measurable, achievable, realistic and timebound. This is a framework that can be used for any goals in your life, from making investments to starting a business, to losing weight. Approaching tasks in this way ensures you remain focused on your outcomes and encourages you to monitor and measure and find ways to improve.

  1. They Switch Off

Finally, and perhaps most importantly, successful people know when to switch off. They recognise their limits and know the importance of taking a break. They plan for busy periods and make sure they don’t burn out. Spending time away from work, being with family and friends, and relaxing are all part of living a successful and balanced life. Achieving this is not always easy, but it is essential.

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