7 Principles of the rich and wealthy
Principles of the rich and wealthy sourced from Codie Sanchez.
Automate your success: Habits are behaviors you do repeatedly. The wealthy know this, so they create habits that create wealth over time. This could be dollar cost averaging into the S&P or exercising daily. The rich leverage the two Cs and avoid another. They leverage Consistency and Compounding and stay away from Complexity. Complexity creates unnecessary friction, which makes it harder to do something consistently over the long term.
Wealth comes from ownership: You can get rich by earning a salary, but you will only get wealthy through ownership. This means you own a slice of the business. This could be your own business or ownership via owning stocks such as S&P. It’s surprising how many people waste time on Facebook yet don’t own Facebook stock. Facebook owns you and is getting richer, but you can too, by owning their stock. ( caution: this is not financial advice)
Obsess over your reputation: Warren Buffett said, “Lose money for the firm, and I will be understanding, but lose an ounce of reputation, and I will be ruthless. “ You will lose reputation by being short-sighted. You might make a dollar today by being cheeky, but rest assured your reputation will ensure you’re not a part of any future deals. The market values integrity over intelligence. Don’t be the smart guy who was left behind because he wanted to make a quick buck.
Follow through: Sounds obvious, perhaps, but the difference between average and exceptional is to follow through. Keep your promises- to yourself and others. Do what you said you will.
Control where you spend time: Do you spend time with people better than you? People who are richer, healthier or happier than you? If not, why not? Are you scared your current friends will think you are becoming holier than thou? Realize that you are limiting your potential by spending time watching Netflix or with friends who don’t want you to grow. Like a plant needs pruning, sometimes your social circle does too. Only spend time with people or on things with a positive ROI. This doesn’t mean you shun your friends. This just means you limit your investment.
Move with urgency. Urgency forces action, which builds momentum. Doers win because the speed of action creates results. Even if you fail, you fail faster so you can quickly adapt and morph into something more productive. Wealthy people are insanely productive because they apply shorter timelines. Do you think writing your book will take 2 years? Wrong. Ask how you can publish it in 3 months. Compressed timelines reduce wasteful effort. They create the kind of pressure that makes diamonds.
Keep going after it gets hard: Get excited when shit gets hard because people who are better than you are there because they keep going. Every successful story has a hero overcoming challenges. There are no glorified quitters for a reason.
Try at least one of these rules in the next quarter.
Wishing you riches in 2025.
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