From my research I discovered that daily habits dictate how successful or unsuccessful you will be in life. By focusing my research on rich people ($160,000 income per year plus $3.2 million in net liquid assets) and poor people ($35,000 income or less per year plus < $5,000 in net liquid assets) I was able to identify common daily habits possessed by the rich and the poor. This research is important because it gets to the heart of the issues and causes of income inequality and the wealth gap that plague our country. I learned five key things from my study:
- Daily habits dictate your long-term financial circumstances in life.
- Certain habits that we have are Keystone Habits. Keystone Habits are unique habits because they affect other ordinary habits. I identified, in my research, ten Keystone Habits that are responsible for creating financial success in life.
- There is a cause and effect associated with daily habits. Having more Rich Habits (good daily habits) than Poverty Habits (bad daily habits) will positively affect your financial condition in life. Having more Poverty Habits than Rich Habits will negatively affect your financial condition in life. Thus, daily habits are the cause and wealth or poverty, the effect.
- Parents are the only shot most of us have at a success mentor in life. Parents can lay a solid foundation for long term financial success for their children by teaching them certain, specific good daily habits (Rich Habits).
- 30% of the population are poor in America. 65% are middle-class. Most of the middle-class (70%) barely get by in life. They are one job loss away from being poor. Only 5% of population are financially well off in America.