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Book Summary | Rich Habits



Rich Habits- The Daily Success Habits Of Wealthy Individuals (the secrets to financial success revealed) is written by Thomas C. Corley- a certified public accountant and financial planner. The author highlights in the book why some are successful while others are struggling to make ends meet. Most successful people themselves are unaware as to why they are so successful. So if we don't know what makes a person successful, how do we become successful?


GENESIS OF THE BOOK:


This is when the author met a client who was doing well in business with no obvious pitfalls, but when it came to payroll time could not make ends meet. After asking the client all the business-related questions and going through the reports, even seeking advice from one of his rich clients in the same industry with a similar level of gross revenue, he could not come to a conclusion as to why his client was struggling financially.


He was disappointed and could not understand why his client was coming up short financially. He finally confessed at a lunch meeting with dismay that he could not identify what was wrong. The client was upset and there was an awkward silence looming. The author tries to break the silence by asking the client a casual question as to what he would do after coming home at night. To which the client leaned in and responds waggishly "I get a couple of ladies of the night, a few bottles of wine and..."


He stops mid-sentence after seeing the shocked look on the author's face and apologises to the author for sharing too much. The author reassures that it had nothing to do with moral indignation but the realisation that he had been asking him all the wrong questions these past months. The epiphany that there's more to financial success than what meets the eye led him to a 20question list that over a 5year period he had asked all his poor and rich clients, as well as every business partner and person he knew.


The data that he had gathered for all these years made him realise the difference in the size of a Great Canyon in the way rich people and poor people live their daily lives. And this one client had unknowingly taken him down the path to the discovery of the secret to financial success.


MISCONCEPTIONS:


When common people come across highly successful people, they view them as LUCKY/TALENTED. They think success is reserved for the few lucky ones and that they have no control over their lives. They believe in FATE and generally have a FIXED MINDSET. In all truth, success is not reserved for a few and most times has nothing to do with luck. And no it was not handed to them by their parents. Most successful people come from disadvantaged backgrounds struggling to thrive.


So if it's not luck and not handed to them how did they achieve such staggering financial success? But before we dive into that, let's define luck and go through the types of luck. LUCK is- success or failure apparently brought by chance rather than through one's own actions.


THE 4 TYPES OF LUCK:


1. RANDOM GOOD LUCK- we have no control over it. E.g., winning a lottery.


2. RANDOM BAD LUCK - we have no control over it. E.g., getting sick.


3. OPPORTUNITY LUCK - by-product of practicing good daily habits day in, day out *over long periods of time. E.g., being promoted as a result of getting high-paying clients for the business.


4. DETRIMENTAL LUCK - evil twin of opportunity luck. By-product of practicing bad daily habits day in, day out *over long periods of time. E.g., losing a job because of carelessness/negligence.

" I believe luck is preparation meeting opportunity. If you hadn't been prepared when the opportunity came along, you wouldn't have been lucky." -Oprah

Successful people ENGINEER THEIR LUCK. They live THE RICH HABITS every single day. They are "DISCIPLES OF RICH HABITS" whether they are aware of it or not. They are goal-oriented and accomplish what they set out to do for the day, each day. Successful people have HIGH EXECUTION SKILLS. POTENTIAL MEANS NOTHING if you don't ACTUALISE it.


To EXECUTE irrespective of how you feel and how busy you are is ALL THAT MATTERS. THE TRUTH ABOUT EXCUSES IS THAT THEY MAYBE VALID but does not necessarily make you successful; they cannot change your life around for the better. Habits on the other hand are monotonous and mundane and seemingly insignificant but can transform your life.


"Living the Rich Habits guarantees you will attract the right kind of luck, and opportunities will appear, seemingly out of thin air."

THE TEN PRINCIPLES TO FINANCIAL SUCCESS:


1. I will form good daily habits and follow these good daily habits every day

  • Reflecting on your life and writing down all the bad habits you practice is the first step to success. Knowing your strengths and weaknesses by assessing yourself is key.

  • Turning your bad habits into good habits is the next step.

DAILY BAD HABITS

DAILY GOOD HABITS

  1. I watch TV for 4hours a day.

  1. I don't watch TV instead I read 10 pages of a book related to my industry/profession,

2. I don't spend time with my wife.

2. I take a walk with my wife every day.

3. I eat mindlessly and am inactive.

3. I don't eat junk food and brisk walk for 30minutes each day.

2. I will set goals for each day, for each month, for each year, and for the long-term. I will focus on my goals each and every day.

  • Successful people are long-term thinkers and have a sense of direction.

  • They know what they want and set out to achieve them.

  • They set goals for the day, week, month, and long-term.

  • They schedule their time and set reminders.

  • They are grounded by a sense of purpose and do not allow the distractions of daily living to affect their work.

DAILY GOALS

WEEKLY GOALS

MONTHLY GOALS

YEARLY GOALS

LONG-TERM GOALS

  1. I will read 10pages of a book related to my work

  1. I will finish reading one book related to my work

  1. I will finish reading 4books related to my work this month

  1. I will finish reading 48books related to my work by the end of this year

  1. I will apply the knowledge and skills that I have gained to improve my work*10X

2. I will walk for 30 minutes at 6am in the park

2. I will reduce my weight by 2kg by the end of the week

2. I will reduce my weight by 8kg by the end of the month

​2. I will maintain my weight by eating healthy and exercising every day.

2. I will bring awareness about the importance of being healthy by hosting social events.

3. I will finish 25% of the project today.

3. I will complete my project by the end of the week.

3. I will complete 4 projects this month

​3. I will be promoted by the end of this year

3. I will start my own business in 5years

3. I will engage in self-improvement every day.

  • Successful people read.

  • They become students of their profession.

  • They devote BLOCKS OF TIME to better themselves.

4. I will devote part of each and every day to caring for my health.

  • Successful understand the importance of eating healthy and exercising each day.

  • They put their health first because they know it can affect their work.

  • They eat to function efficiently.

5. I will devote each and every day to forming lifelong relationships.

  • While unsuccessful people underestimate the importance of interpersonal relationships, successful people treat them as GOLD.

  • They understand the importance of forming a network of like-minded individuals.

  • They stay clear of destructive people.

6. I will live each and every day in a state of moderation.

  • Successful people have a common trait. They all have a DISCIPLINED MIND.

  • They don't fall prey to EXTREMES. They live a BALANCED LIFE.

  • Unlike unsuccessful people who become victims of addictions/extravagances/emotional swings, they live in moderation because they understand that LIFE IS A MARATHON NOT A SPRINT.

7. I will accomplish my daily tasks each and every day. I will adopt a "DO IT NOW" mindset

  • Successful people do not procrastinate. They understand that procrastinating leads to catastrophes.

  • They are PROACTIVE AND CONSISTENT.

  • They always COMPLETE their tasks before the deadline.

8. I will engage in rich thinking every day.

  • Successful people are highly motivated and optimistic.

  • They are driven and determined.

  • They see obstacles as opportunities.

9. I will save 10% of my gross income every paycheck.

  • Successful people are SAVERS. They invest at least 10% of their monthly income in RETIREMENT PLANS/SAVINGS ACCOUNT.

  • They have high credit scores.

  • They live below their means.

10. I will control my thoughts and emotions each and every day.

  • Successful people don't let emotions talk them out of putting in the hours.

  • They understand that thoughts control their decisions and hence have a disciplined mind.

  • Successful people THINK-EVALUATE-REACT, unlike unsuccessful people who let their emotions take control and act hastily before thinking.

In closing, RICH HABITS gives you the blueprint for success. And though the book gives examples that highlight financial turnaround for those struggling. It really is meant for every area of life from mental/physical health to building healthy relationships and academic success. When it comes to habits it really isn't about doing heroic things for just a day or two but a steady pace of doing mundane things throughout the length of this lifelong race. While most people treat good habits as short-term practice, successful people devote themselves to these lifelong disciplines.



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