7 financial decisions successful people make that have nothing to do with how much they earn

Ever heard the phrase “Money can’t buy happiness?”

Well, as cliché as it sounds, there’s a nugget of truth in it.

You see, financial success isn’t solely about the digits in your bank account. No, it’s not just about how much you earn, but more importantly, how you manage what you earn.

I’ve spent years observing successful individuals, and guess what? They all seem to follow a similar set of financial practices – practices that have little to nothing to do with their income.

Piqued your interest?

If you’re thinking “What are these financial decisions that I can start making today?” – stick around. We’re about to delve into seven vital financial decisions successful people make that aren’t tied to their earnings.

And who knows? It might just be the key to unlocking your own financial success story. Trust me, it’s not as complicated as it sounds.

Are you ready? Let’s dive in!

1) They prioritize saving

Here’s the deal.

Successful people understand the value of a dollar saved today. It’s not just about stashing away cash, but about cultivating a mindset that prioritizes future financial stability.

You see, no matter how much they earn, these individuals always set a portion of their income aside for savings. It could be as little as 10% or as much as 50%, depending on their financial goals and circumstances.

But why is this so important?

Well, think of these savings as a safety net. They provide a buffer for unexpected expenses – be it an emergency medical bill, a sudden job loss, or even a global pandemic (yes, we all know how that feels).

Plus, having savings also opens the door to investment opportunities. And remember, the sooner you start investing, the more time your money has to grow.

So, take it from the successful folks. Start saving today, no matter how small the amount. Your future self will thank you for it.

2) They keep track of their spending

Let me share a personal story on this one.

A few years ago, I found myself in a financial rut. Despite earning a decent salary, I always seemed to be living paycheck to paycheck. It was frustrating, to say the least.

One day, a friend recommended that I start tracking my spending. Honestly, I was skeptical at first. But then I thought, “What have I got to lose?” So I gave it a shot.

I started jotting down everything I spent money on – from rent and groceries to my morning coffee and occasional takeout meals.

Guys, it was an eye-opener!

Turns out, I was spending an absurd amount on things I didn’t even need! It was those little expenses here and there that were slowly draining my wallet.

From that day forward, I made it a point to regularly track my spending. It not only helped me identify where my money was going but also made me more mindful about my spending habits.

And guess what? That’s what successful people do. They keep a keen eye on their expenses. They understand where their money goes and make conscious decisions about what they choose to spend on.

Start tracking your spending today. It might just be the game-changer you need for your financial health.

3) They don’t let their lifestyle inflate with their income

You know that feeling when you get a raise or a bonus? That urge to upgrade your car, move into a bigger house, or treat yourself to that luxury watch you’ve been eyeing?

Been there, done that.

But here’s the cold, hard truth.

If you’re constantly upgrading your lifestyle every time your income goes up, you’re setting yourself up for financial instability. It’s a vicious cycle that leaves you running on a never-ending treadmill – always chasing after the next big thing, but never really getting ahead.

Now, don’t get me wrong. There’s nothing wrong with enjoying the fruits of your labor. But successful people understand the value of moderation.

They know that it’s not about having the flashiest car or the biggest house. It’s about building wealth, achieving financial freedom, and creating a life they love – without being chained to their paychecks.

So, resist the temptation to inflate your lifestyle with every pay raise. Instead, invest in assets that can generate income for you. Remember, it’s not about how much you earn, but how well you manage what you earn.

4) They create multiple streams of income

Ever noticed how successful people never rely on a single source of income?

That’s because they understand the importance of diversification.

Let me put it this way. Imagine having a basket and putting all your eggs in it. Now, what happens if you accidentally drop the basket? You lose all your eggs, right?

The same principle applies to income. If you rely solely on your job for income, what happens if you lose that job? You’re left with nothing.

Successful people avoid this by creating multiple streams of income. This could be in the form of a side business, rental income, investments, or even a part-time gig.

Not only does this provide a safety net in case one source of income dries up, but it also helps build wealth faster.

So, consider creating multiple income streams. It might take some effort and time to set up, but the rewards are definitely worth it.

5) They invest in their financial education

Did you know that only 57% of adults in the U.S. are financially literate?

That’s right.

And yet, one thing that sets successful people apart is their commitment to continually learning about money management, investing, and financial planning.

You see, it’s not enough to just earn money. You need to know how to manage it, grow it, and protect it. This is where financial education comes into play.

Successful people understand this. They read books, attend seminars, and stay updated on financial news and trends. They know that the more they learn about finances, the better equipped they are to make sound financial decisions.

In a world where information is readily available at our fingertips, ignorance is no longer an excuse. So, invest in your financial education. It’s one investment that’s guaranteed to pay off in the long run.

6) They give back to the community

Here’s something you might not expect.

Successful people understand the importance of giving back. It’s not just about hoarding wealth, but about making a positive impact on the world around them.

Remember, true wealth is measured not by what you have, but by what you give. It’s about making a difference, however small it may be.

I’ve seen this firsthand with many successful individuals. They take the time and effort to donate to charities, support local businesses, mentor the younger generation, and invest in causes they believe in.

It’s a beautiful cycle, really. The more you give, the more you receive – not necessarily in terms of money, but in terms of fulfillment and purpose.

So, consider giving back. Not only will it enrich your life, but it will also make the world a better place. And isn’t that a worthy goal to strive for?

7) They plan for the long term

Here’s the big one.

Successful people always have a long-term financial plan. They don’t just live for the present, but plan for their future as well.

Whether it’s saving for retirement, planning for their children’s education, or investing in assets that will provide income in the future, they always keep their eye on the long game.

Remember, financial success isn’t achieved overnight. It’s a marathon, not a sprint. It requires patience, discipline, and a clear vision of what you want to achieve.

So, start planning for the long term. Your future self will undoubtedly thank you for it.

Final thoughts

As we wrap up, you might find yourself reflecting on these principles. Perhaps you’ve been following some without realizing it. Or maybe there are areas you’ve overlooked.

The truth is, financial success isn’t about how much money you make, but about how smartly you manage and grow it.

It’s about long-term planning, continuous learning, and giving back.

Remember, change doesn’t happen overnight. It requires patience, perseverance, and consistency. But rest assured – every small step you take towards better financial habits can lead to significant outcomes.

So, take a moment. Reflect on these principles. Consider how you can incorporate them into your financial journey.

Financial stability isn’t a destination but a journey. And with each wise decision, you’re not just building wealth – you’re also building a life of financial freedom and independence.

And isn’t that what true success is all about?