Financial habits of highly successful people in 2020

You have definitely asked yourself what do these successful people do. This is what you yearn to know so as to adapt their ways of doing things. From Gloria Michelle Atieno, CEO Recourse Four Kenya Consultants Limited, Sandile Shezi(youngest South African self-made millionaire) CEO Global forex institute to Jeff Bezzos founder of Amazon (leading E-commerce company). I have noted down their financial habits below.

1. Creating a motivating list of money goals.

Successful people always do this before spending any penny.

Plan and write down what you want to achieve with your money. A budget is very important to have, but one area where the successful differentiate themselves is having crucial money goals. They review them each day and that gives them a clear direction on what they need to do to improve personal wealth.

2. Spending money carefully and working hard.

It basically means planning ahead for how you will spend and save. Therefore, when you’re cognizant of your spending habits, its easier keeping them in check. It contributes more to your saving goals. You can cut out your not-compulsory expenditure like daily trips to the coffee shop. This is something very common among the business elite. For success, you have to be extra careful.

3. Diversifying risk by generating new income streams.

This idea is creating multiple revenue streams within your business or activities.

In business you can diversify thus lowering your personal finance risk. For example Sandile Shezi  does forex trading. To expand his income streams, he founded global forex institute to train people on forex trading.

For businesses, selling through new channels or introducing new products does. This creates additional opportunities for sales growth.

4. Investing in passive income.

Where does your extra money go after paying off your necessary monthly expenses?

Investing the remaining amount or profit is key because it fuels further growth.  The same holds for your personal finance.

Continually topping up your savings or investment account allows your growth to compound over time.

Buying shares in companies and other institutions like banks : The likes of James mwangi ,CEO equity group, buy   shares of various companies. Making their money work for them through earning dividends. This is but one form of passive income.

5. Staying aware of the market.

Wealthy entrepreneurs make an effort to stay up to date on broad trends that could impact their businesses and personal finance.

For instance, the changing interest rates can influence your long term costs for taking out a loan for new business venture.

For Jeff Bezzos,being aware of the trends will make him know where to adjust so as to achieve relevance in his E-commerce platform. The constant changing world is very crucial to Amazon. They have to deliver quality and right products for consumer satisfaction.

6. Investing young.

Its common perception among people that investing is for when you have job stability or when you reach a certain age 30s or 40s.

In contrast however, Gloria Michelle Atieno 31, Sandile Shezi 26 and Mark Zuckerberg 36 just to name a few, that is not the case. Investing their money as early as possible gave their money time to grow.

There are some investments that require little amount. Go through this blog post to get an idea. You will find that investing can start from as small as ksh.500

7. Create a cushion.

It is essential to keep aside some money as a cushion for emergencies.

We all hope to never have a dip into such a reserve unfortunately, circumstances may arise where our cash needs exceeds our expectations. At such times having an emergency cushion kept aside helps you avoid using your investment as bailout. So, create a cushion and your expenses will also be met comfortably.

In conclusion, you note that these habits can also apply in personal finance. Its the simple things ,they’re never complicated. Budgeting, saving and investing are the main areas.