After compiling a list of the best podcasts about money according to Reddit, I’ve been sampling as many of the programs as possible. One of my favorites is The M.O.N.E.Y Show with Paula Pant and J. Money. The two hosts have a good rapport and their personalities mesh well: J$ tends to be more impulsive and emotional; Paula is the logical/analytical half of the duo.
I enjoyed their discussions about dollar-cost averaging (episode #15) and financial independence (episode #7). But my favorite installment is probably episode #8, in which J$ and Paula explain net worth by giving glimpses of their own financial lives. The similarities and differences are interesting and educational.
Not every episode of The M.O.N.E.Y. Show is a homerun, however. I wanted to like their interview with Tom Corley in episode #10, but I felt like the author never got to the point. I was hoping to hear more about his 2010 book, Rich Habits: The Daily Success Habits of Wealthy Individuals, which summarizes his research into the habits of the rich and poor. This episode offered only a small taste of the results.
Because I wanted to know more about Corley’s “rich habits”, I tracked down a piece he wrote for Success magazine that gives more insight into the results of his study. From there, I found similar lists by other authors — and unearthed one of my own.
Is it really possible to generalize about the differences in the way rich people and poor people behave? Let’s explore the “millionaire mindset” by examining habits that foster wealth and success.
First, let’s look at Corley’s findings. His approach is unique because he took time to interview both the rich and the poor. (Corley defines “rich” as those having an income over $160,000 per year and net liquid assets of more than $3.2 million. To him, poor means a gross income of $35,000 or less and no more than $50,000 in liquid assets.)
According to Corley’s article in Success:
- Rich people live within their means. “Wealthy people avoid overspending by paying their future selves first. They save 20 percent of their net income and live on the remaining 80 percent.”
- Rich people don’t gamble. “Every week, 77 percent of those who struggle financially play the lottery.”
- Rich people read every day. “Among wealthy people, 88 percent read 30 minutes or more every day.”
- Rich people spend less time in front of screens. “Two-thirds of wealthy people watch less than an hour of TV a day and almost that many…spend less than an hour a day on the Internet.” On the other hand, “77 percent of those struggling financially spend an hour or more a day watching TV, and 74 percent spend an hour or more a day using the Internet recreationally.”
- Rich people control their emotions. “Loose lips are a habit for 69 percent of those who struggle financially. Conversely, 94 percent of wealthy people filter their emotions.”
- Rich people network and volunteer regularly. “Almost three-quarters of wealthy people network and volunteer a minimum of five hours a month. Among those struggling financially, only one in 10 does this.”
- Rich people work harder. “Unsuccessful people have ‘it’s not in my job description’ syndrome…Successful people work hard to achieve the mutual goals of their employers or their businesses.”
- Rich people set goals; poor people make wishes. “Every year, 70 percent of the wealthy pursue at least one major goal. Only 3 percent of those struggling to make ends meet do this.”
- Rich people avoid procrastination. “Successful people understand that procrastination impairs quality; creates dissatisfied employers, customers or clients; and damages other nonbusiness relationships.”
- Rich people talk less and listen more. “Wealthy people are good communicators because they are good listeners. They understand that you can learn and educate yourself only by listening to what other people have to say.”
- Rich people avoid toxic relationships. “Of wealthy, successful people, 86 percent associate with other successful people. But 96 percent of those struggling financially stick with others struggling financially.”
- Rich people don’t give up. Wealth individuals “simply do not quit chasing their big goals. Those who struggle financially stop short.”
- Rich people set aside limiting beliefs. “Almost four out of five wealthy people attribute their success in life to their beliefs.” They pursue personal development.
- Rich people have mentors. “Finding such a teacher is one of the best and least painful ways to become rich.”
- Rich people make their own luck. “Successful people create their own unique type of good luck. Their positive habits lead to opportunities such as promotions, bonuses, new business and good health.”
- Rich people know their main purpose. “It’s the last Rich Habit, but it might be the most important. Those people who pursue a dream or a main purpose in life are by far the wealthiest and happiest among us.”
I’d love to see the raw data that led Corley to make these conclusions but I don’t think his book includes that info. From what I can tell, it’s written as a story, sort of like The Wealthy Barber.
I did find other articles about Corley at Business Insider (some stats included) and Entrepreneur (no stats), but I can’t find anything about his actual methodology and the results of the study. Even the Rich Habits website is short on info.
Have any of you read Rich Habits? What’d you think? Does Corley share data from his research? [Read more…]