Successful entrepreneurs possess great insights that allow them to overcome obstacles in their lives. But what financial habits helped to make them who they are today? After all, learning how to build wealth is easier when you hear how others have done it.
Passion motivates you to earn more money
Many Millennials are still caught between following their passions and following the money. They usually want to earn more money, but don’t always understanding what drives them. However, if you feel strongly about a cause and can make it your career, you’ll already be motivated to work hard – and, as happens, money often follows passion.
Blake Mycoskie, founder of Toms Shoes, believes it is best to follow one’s passion instead of chasing money. His fashion business could have been plagued with problems of high marketing costs and low profit margins, but his passion for social entrepreneurship allowed him to use the idea of gifting a pair of shoes to a needy child for every pair bought as a marketing tactic. Each time he made a decision he was passionate about, his company earned more money.
Understanding wants versus needs
There is nothing wrong with buying what you want, but it helps to take a step back to understand what exactly your wants and needs are. Shark Tank investor Kevin O’Leary refuses to spend $2.50 on a cup of coffee every morning because he would rather invest it,. The concept of delayed gratification comes into play here: By putting off something mildly pleasurable inthe present, O’Leary is able to gain something else that is more rewarding in the future.
Do you really need a new pair of shoes? Can you make coffee at home before leaving for work? The idea here is to find ways to only spend money on things that really matter to you and invest the rest.
Invest in intangibles
New Orleans-based entrepreneur and philanthropist Larry Morrow was enthralled by the glamorous lifestyle of wearing luxury watches, but he did not want his penchant for timepieces to define him. He believes it is more important to provide for his family and to save money to ensure that his kids will not have to worry about college tuition fees.
Though brand-name goods may make you feel a sense of pride when wearing them, they are not what matters the most, in the long run. Resisting material items to save money for the future prepares you for financial independence. These savings will give you the freedom to make your own financial decisions then, without having to live from paycheque to paycheque.
