Some people always seem to succeed financially. But what is it about these individuals that allows them to keep bouncing back, no matter what the circumstances throw at them? How is it that they can lose everything and still come back for more?
That’s a deep question and one that would take an entire book to answer. But from observing the people who always seem to pull through financially, we can hazard some guesses.
Mindset
Top of the list of characteristics these individuals have is their mindset. People with a growth-oriented attitude always seem to pick themselves up and dust themselves off when things go wrong. These individuals embrace challenges and learn from their failures, allowing them to continue a positive outlook on their life and financial journey. It doesn’t seem to matter what happens or gets in their way, they stay the course and don’t allow the world to bring them down.
Education
These people also tend to be highly educated, reading widely and learning as much as they can about how money works. Right now, the smartest people in the world are going beyond passive investing and looking for ways to be more active in their pursuits.
Sometimes, the ability to build financial wealth comes from strange places. Many individuals simply “luck out,” meaning they come across something that they later discover could change their financial lives.
Risk Management
At the same time, you also see many of these individuals investing in risk management. Cutting down on their exposure to losing bets can be an excellent way to build wealth over the long term.
The most successful people are those who take calculated risks. They understand there’s a chance they could lose money, but they also know when they are most likely to win. This knowledge and setup gives them the perspective they need to make more correct decisions throughout their lives than wrong ones.
Goal Setting
Goal setting is also a part of the equation, though not perhaps as central as many people might think. Many entrepreneurs and millionaires have a vision for what they want to achieve and do what needs to be done every day to get there. Sometimes, it takes years to achieve, but the payoff at the end of it is often worth it.
Goal setting should take the form the individual will respond to the most. For some, that means setting clear financial goals in the short term. For others, it means having a general sense of the set of behaviors most likely to lead to success and positive outcomes in the long term. It’s just a question of which approach the individual prefers.
Trying New Ideas
Trying new ideas is another characteristic of people who always seem to land on their financial feet. Even if one approach to work isn’t helping them anymore, they are willing to try another.
These new ideas can take various forms. For some individuals, it means changing jobs or performing a new role in an existing structure. For others, it means trying a new approach to business, like POS lending, drop-shipping, or taking it online.
This capacity to try new ideas comes from the trait of openness. Highly successful people are often conscientious (meaning they are careful and work with perseverance) and willing to entertain new ideas if there’s evidence they might help them.
Networking
At the core of many money-making efforts is also the ability to network. Some individuals are better able to make these connections than others, allowing them to generate positive returns within their social circles.
Networking is important for a couple of reasons. The first is that it makes things happen faster. Business projects are more likely to succeed when a network is in place.
At the same time, it provides ideas. Highly networked individuals are more likely to learn things before the rest of the market, allowing them to make better financial decisions, based on what’s coming down the pike.
Networking is challenging because the depth of any network reflects the value you already have. But if you can generate alliances with partners who have potential, there’s almost no limit to how far you can take things.
Adapting To Change
Another feature of people who always seem to have money is the ability to adapt to change. These individuals aren’t afraid to deal with the world as it is, unlike how they’d like it to be.
This adaptation process can be a game-changer under many circumstances. For example, when the housing market was imploding during the 2009 recession, many people decided that it was time to buy. Purchasing when the assets were cheap led to higher and more spectacular returns in the following years.
Long-Term Vision
Then there’s the long-term vision many of these people have. They aren’t afraid to think twenty or thirty years into the future if they believe it will help them achieve their goals.
This long-term perspective means that the day-to-day ups and downs in their lives don’t matter as much. What counts is their ability to keep working toward their North Star, in spite of what might be happening in their personal lives.
Strong Work Ethic
Finally, you also find that many successful people also have a strong work ethic. That doesn’t mean they are working the whole time, but it does mean that they focus on what they need to do and avoid spending too much time resting or relaxing (although that can be a part of their lives).
This approach to work often comes from the idea that they believe in what they’re doing. They want to work hard because it is something that’s in their heart. The financial rewards are simply the product of their service.
So, that’s the truth behind why some people succeed financially. Luck, of course, plays a role. But it isn’t the only factor that’s involved in steering someone toward success. Financial prudence and understanding how the game works also help, whether you’re someone who likes to save, start businesses, or do both.