5 Habits of Confident People
Rich dad said, “There are habits that make you rich, and habits that make you poor. Most poor people are poor because they have poor habits. If you want to be rich, all you have to do is train yourself to have rich habits.”
If you are serious about becoming rich, you must do the following things over and over again, from now until forever, for the rest of your life.
Habit #1: Hire a Bookkeeper
Before your banker will lend you the million dollars, your banker will want to know that you are trustworthy with the money. One of the ways the banker will feel comfortable lending you that much money is if you have clean, professional financial records in the form of a financial statement. Most people cannot qualify for large loans because they have poor records. Many people pay higher than necessary interest rates simply because they have poor financial records.
Even if you do not have a business, your personal life is a business, and all real businesses have bookkeepers. That is why I strongly recommend you hire a bookkeeper and keep a bookkeeper for life. By having a bookkeeper keep your income, expenses, assets, and liabilities in line, you begin to keep professional records. I also strongly recommend you sit down with your bookkeeper and go over your numbers each and every month. Repetition is how we learn, and by repeatedly going over your monthly numbers, not only do you establish a good habit, you gain more insights into your spending patterns, you can make corrections earlier, and you ultimately take control over your financial life.
Habit #2: Create a Winning Team
One of the reasons people from the E and S quadrants occasionally have trouble transitioning is because they are not used to having a team assisting them with their financial plans and financial decisions.
As a child, I noticed that my poor dad shouldered the financial problems all by himself. He sat quietly at dinner if he was troubled, argued with my mom if he was frustrated about money, and sat alone late at night trying to make ends meet. There were many times I came home to find my mom crying because she knew that we were in financial trouble, and she had no one to talk to. When it came to money, my dad was the man of the house, and he never discussed his financial challenges with anyone.
My rich dad, on the other hand, would sit around a table in his restaurant, surrounded by his team, and openly discuss his financial problems. Rich dad said, “Everyone has financial problems. The rich, the poor, businesses, governments, and churches all have money problems. What determines if someone is to be rich or poor is simply how well he or she handles those problems. Poor people are poor simply because they handle their money problems poorly.” That is why my rich dad discussed his money problems openly with his financial team.
He said, “No one person can know everything. If you want to win the game of money, you want the best and smartest people on your team.”
Habit #3: Constantly Expand Your Context and Your Content
We now live in the Information Age, not in the Industrial Age. In the Information Age, your greatest asset is not your stocks, bonds, mutual funds, businesses, or real estate. Your greatest asset is the information in your head and the age of your information. Too many people are falling behind because the information in their head is ancient history, or they cling to answers that were right yesterday but wrong today. If you want to retire young and retire rich, you will need to keep up with a world of rapidly changing information.
Habit #4: Be Willing to Fail More
Rich dad said, “Sometimes what is right for you at the beginning of your life is not the right thing for you at the end of your life. Too many people are unsuccessful simply because they are afraid of changing or are unable to change with the times. The reason they are unable to change is that they are afraid of being wrong. Sometimes to be right, we all need to be wrong. If we want to learn to ride a bicycle, we must go through being wrong for a while. Most people are unsuccessful simply because they want to be right, but they are unwilling to be wrong. It is their fear of failing that causes them to fail. It is their need to be perfect that causes them to be imperfect. It is their fear of looking bad that causes them to ultimately feel bad about themselves.”
Rich dad’s secret was that the world is designed for us not to fail. The world is designed for us to win. The challenge is to be willing to first fail so you can win. Once you understand this secret, you will be more willing to fail in order to win. As rich dad often said, “People who avoid failure also avoid success. Failing is an integral part of success.”
Habit #5: Listen to Yourself
The last and most important habit for anyone who wants to retire young and retire rich is to listen to yourself. Rich dad often said, “The most powerful force I have is what I say to myself and what I believe.”
This habit is another way of expressing your reality or your context.
Rich dad would say, “Losers focus a lot on what they don’t want in life, rather than be specific with what they do want. That is what they do differently. It’s a habit. The same is true with money.”
“So there is a big difference between someone who constantly says, ‘I don’t want to be poor,’ and someone who says, ‘I want to be rich,’” I replied.
Rich dad nodded and said, “It seems to me that the human mind does not hear do or don’t. It just hears the subject being discussed—words such as fat, healthy, poor, and rich. Whatever the subject is, is what you become.”
“So when someone says, ‘I don’t want to lose money,’ all the mind hears is, ‘I want to lose money’?” I asked, seeking further clarity from my rich dad’s lesson.
Rich dad nodded and gave me one of the most important habits in my life. He said, “We all feel frightened, uncertain, and doubtful at times. That is part of being human. When I feel that way, the first thing I do is check my thoughts. If I feel bad or afraid, I know I am saying or thinking something to cause myself to feel that way.”
Confidence With Habits
I want to reemphasize how important I believe these basic habits are. These are easy habits that virtually anyone over the age of 18 can follow. Yet even though they are easy, I am afraid only a very few will make them habits.
If you can make these simple habits your lifelong habits, the action steps in the following chapters will be easy for you and may make you richer than your wildest dreams. As my rich dad said, “The story of ‘The Three Little Pigs’ is more than a fairy tale. It is a story filled with truths. If you want to build a house of bricks you need good habits. Good habits are the bricks of the rich.”
Editor, Rich Dad Poor Dad Daily