Nuttily successful with money? Yes. You know the ones. They never have a problem buying impulsively, they have their retirement plan totally figured out, they have zero debt, and money in the bank. Basically, they just have it together money-wise, and not in the it-just-looks-like-they-have-it-going-on-in-the-financial-department but they legitimately do.
So, what personality traits make some people successful with money while others seem to struggle financially… sometimes for their entire lives? You may think people who are successful with money have uncovered some secret to wealth or maybe they have just popped out of their mama's vajayjay knowing how to save. It seems people who reach their financial goals tend to share common character traits – rather than secret knowledge or an innate know-how.
Here are common character traits people who are successful with money share – so, luckily, if you don’t currently have these traits, you can work to develop them in order to reach your own financial goals (I'm a natural-born Spender who has changed their ways so I know it's possible;).
6 Easily Adoptable Traits of People Who are Successful with Money:
1. They Embrace Frugality
Believe it or not, some of the richest people in the world are also some of the most frugal. For example, Mark Zuckerberg, the founder of Facebook, is still known to drive a moderately priced Acura sedan, despite being a billionaire. People who are successful with money lead meaningful lives that are not generally based around material belongings and don’t base their self-worth on material items which allows them to save more money than people who need “things” to feel better about themselves.
2. They Have Patience and Perseverance
People who are financially successful tend to be patient and will stick to the plan instead of changing course at the first sign of trouble. Investors who spend time researching an investment strategy, and then have the patience to stick to that strategy tend to do better than investors who panic and then sell at the wrong time. In 2008 and 2009, when the market took a serious downturn, Fidelity research shows that investors in 401(k) plans who remained invested were rewarded in June of 2011 with a 50% return – while those who panicked and sold or moved their money ended up with only a 2% return in 2011. People who remained invested and continued to contribute to their plans gained an average of 64% during that same time period – so it pays to persevere and have patience.
3. They Have a Healthy Tolerance for Risk
People who are successful with money don’t hide from risky situations – instead, they understand what the risks are, and then use various strategies to take advantage of it. Ultra-conservative investors rarely see big returns, but ultimate risk-takers often lose it all in a blink of an eye. There has to be an understanding of the risks for each situation, and a good balance between safety and risks when it comes to what you do with your money. Having a healthy tolerance for risk in general, is also useful for people to advance in their careers or become successful business owners.
4. They Have the Ability to Ask for Help
Financially successful people are not the type to feel they need to do everything themselves and learn everything there is to know about every last detail in life. Instead, they tend to be the type of people who can ask for help when they need it. Most people who are successful with money have sought outside advice from a financial advisor or use CPA’s for their tax returns to find areas for saving that they themselves may be unaware of. People who have success financially recognize that people with specialized knowledge, and experience are more likely to know details about things that they themselves may never know – and they could be missing out from that lack of knowledge. In terms of investing, a study by Hewitt Associates and Financial Engines shows that investors who get outside advice and assistance are 2% richer annually than those who do it all on their own. Damn.
5. They Have a Never-Quit Mentality
Whether you are looking to reach financial goals or personal goals, one character trait will serve you well: don’t give up. So many people are quick to walk away from anything that becomes difficult, challenging, or confusing. If the road to success was an easy one, everyone would be successful. Learn to embrace challenges, and learn that fighting through something when you’d rather give up is the exact thing you need to do to overcome the obstacles and reach your goals. That being said, if something isn't working for you — even if it's just a book you're reading that you're no longer feeling — don't keep going with it just to say you finished. You've got to trust those gut instincts so you don't waste your precious time. Really, this comes down to knowing when to throw in the towel, and when to keep going despite difficulties. These skills get honed more and more with time, and take practice to get right.
6. They Have a Go-Getter/Entrepreneur Mind
People who are successful with money have to learn ways to make more money, and often that leads them to a path of entrepreneurship. When you are an employee, you have income limitations and ceilings that prevent your growth. While it is still possible to invest and become successful, as an entrepreneur, the only limits you have are the ones you place on yourself. Financially successful entrepreneurs have another set of traits that the average population may not possess which lends to their success:
- They take action – Entrepreneurs don’t wait for someone else to do something – they take action and get it done themselves.
- They're not afraid to fail – People who create and start things from scratch are not afraid of failure. In fact, entrepreneurs are generally the type of people who embrace failure and see it as a stepping stone that brings them one step closer to success.
- They able and willing to change – Entrepreneurs and financially successful individuals are not afraid to change. They recognize when things are not going well and learn when it’s time to change direction to avoid wasting money with ideas that are not fully developed.
What traits do you have and which ones do you need to work on?