The Best Investment Plan Is Part Science, Part Emotion

Research says to pick an investing strategy and stick to it. That's a lot easier to do when it's a plan you believe in.

What’s the right way to invest?

Most people I talk to about money end up asking me some version of that question. Heck, I continue to ask it myself as I try to ensure that I’m always giving my clients the best advice possible.

The question comes from a good place. You work hard for your money and you want to make sure that your money is working hard for you. You have important goals to reach and your investment plan has to help you do it.

But there’s an assumption inherent in this question that can get you into trouble.

Because the truth is that there is no right way to invest. And the search for the right way to invest can actually lead to more problems than solutions if it causes you to continually change your investment plan in pursuit of the newest best idea.

Instead, I would encourage you to accept that the best investment plans are a mix of science and emotion, and incorporating both gives you the best chance at success.

The Science

The science of investing comes from decades of research and it can teach you some best practices.

It explains how different types of investments work, shows you some simple strategies that will improve your odds of success, and help you create a “good enough” investment plan to help you reach your goals.

For example, here are a few things we believe to be true based on the best scientific research on investing we have to date:

• Stocks offer the greatest opportunity for big returns, but also the biggest risk that you won’t actually get those returns.
• Bonds provide a smaller return, but with more certainty that you will actually get it.
• The longer you stay invested in the stock market, the more likely it is that you’ll get a positive return.
• Regularly changing investment strategies or trying to move in and out of the stock market with the ups and downs is likely to lead to poor results.
• Factors like how much money you need and when you need it should influence your investment strategy.
• The less money you need, the more conservative (and therefore certain) you can be with your investment strategy.
• The longer you have until you need the money, the more aggressive you can afford to be (because you’ll have longer to ride out the down periods).
• If you’re investing for the long term (10+ years), some significant investment in the stock market is likely a good idea.
• Costs matter. A lot. The less you pay for your investments, the greater your chance of success.

None of these things is absolute. Nothing in the world of investing is. But these are the best practices we’ve learned from the best scientific research we’ve been able to do. And they should serve as important guidelines as you create your investment plan.

The Emotion

All of that science is great, but it’s inexact. It gives you a range of possible strategies that could work, but it doesn’t provide one right answer.

And here’s the other thing: We know from decades of experience that one of the best things you can do is simply pick a plan and stick with it through thick and thin.

That consistency, almost more than anything else, is what really leads to success.  And that’s where your emotions come in.

See, we aren’t robots. We can’t just input “optimal investment plan A” and expect to stick with it forever.

We are humans, and humans have emotions. And those emotions affect our decisions whether we like it or not.

For example, you may hear that you’re supposed to be heavily invested in stocks because you’re relatively young and have a long time before retirement. That’s the conventional wisdom and there are good reasons behind it.

But there’s also the fact that being heavily invested in the stock market means that your account balance will rise and fall dramatically with the ups and downs of the market.

Some people are comfortable with that. Some aren’t.

If you aren’t, it’s much better to acknowledge that ahead of time and choose to be a little more conservative.

That will increase your comfort level, which will increase the chance that you’ll actually stick to your plan, which will increase the chance that you’ll actually reach your goals.

And that’s just one example. As you do your research you’ll come across many other right ways to invest. And while some of them can absolutely serve as helpful guidelines, understand that they usually aren’t hard and fast rules.

So take stock of your emotions and include them in your decisions as well.

Science + Emotion = Best Chance of Success

The best investors use science to understand best practices and determine the range of “good enough” investment strategies.

Then they use emotion to choose a strategy that not only fits within that range but that they understand and feel comfortable with.

It’s the best of both worlds, and it’s the key to long-term success.

Source: http://www.thesimpledollar.com/science-emotions-and-investing/

What to Do (and Not to Do) With Your Year-End Bonus

Save money and money will save you.

78 percent of workers can hope for some kind of year-end bonus from their employers. Few will get anything like the average $172,860 Wall Street bankers can expect in their stockings. But a holiday bonus is still an opportunity to reduce debt, pad savings, and otherwise do the right financial thing.

Alternatively, you could do the wrong thing.

Making a mistake with a year-end bonus is just as easy as making a smart move, warns Joe Roseman, a financial planner in Charlotte, North Carolina. The first thing you shouldn't do with your bonuses is spending it all. "Don't blow it on Christmas," Roseman says.

The second thing you shouldn't do is use it for a down payment on a new car. "You're still going to have the payments next year," Roseman points out.

"Don't pay extra on your mortgage," he adds. "You are taking away your tax deduction." While paying down a mortgage will save future interest, at today's low mortgage interest rates that savings are modest, and the benefit is further reduced by the tax deduction.

Finally, Roseman adds, "You shouldn't count on a bonus every year." By that, he means don't spend next year's year-end bonus on next year's summer vacation. Many employers pay bonuses when times are good and then cut back or eliminate them if business contracts. If you charge a vacation to a credit card thinking you'll pay it off with your bonus, you could find yourself in a high-interest hole next New Year's.

So what should you do with it? A really smart move is to sink at least some of it into a retirement savings account, suggests Scott A. Stratton, a financial planner in Dallas. "If someone 25 years old took $5,000 of their bonus and invested it until they were 65 and earned 8 percent, they'd end up with $108,622," Stratton notes.

The younger you are, the smarter it is. For instance, if a 35-year-old socked away the same $5,000 bonus until age 65, also earning 8 percent, the ending balance would total just $50,313, according to the Security Exchange Commission's calculator at Investor.gov. "You'd end up with half as much just by waiting 10 years," Stratton says.

While getting started on retirement savings is important, it isn't only important financial use for a year-end bonus. Because the compounding effect of interest you are paying is just as powerful as interest you are earning, consider paying off all or part of any debts that charge steep interest rates.

"If you're carrying a balance on any credit cards, that's got to be a high priority," Stratton says. "And a lot of people want to look at paying down their student loans, especially those that are higher interest."

Next after that is an emergency fund. "You need six to nine months of living expenses set aside," Stratton specifies. If you have trouble getting traction on an emergency fund, a year-end bonus can help get you started.

The final thing you should consider doing with your year-end bonus is spending part -- not all -- of it on something that isn't necessarily financially whip-smart. Say, a nice vacation, or a piece of jewelry. How much? Roseman suggests 25 percent, but it depends on the size of the bonus.

But whatever you do or don't do with your year-end bonus, remember to treat yourself to a little extravagance. "Everybody, when they get a pile of money, deserves to spend it on something they've always wanted," Roseman says.

9 Bad Financial Habits You Need to Break Right Now

Habit #1: Stop doing the same things over and over again.

Human beings are habit-creating machines. Research shows we crave any mental or physical shortcut that frees time and energy for our minds to focus on higher-level thoughts, such as wondering what to have for lunch or speculating about the true parentage of Jon Snow on Game of Thrones.

A “habit loop” is created in three steps: a cue or trigger, the behavior itself, and a reward for that behavior, according to Charles Duhigg, author of The Power of Habit. Bad money habits are more difficult to steer out of than automated behaviors like driving a car. Why? Financial peace of mind is a much more subtle reward than the satisfaction of navigating a half-ton piece of metal through city streets without death or injury.

Still, every person who’s good at money learned these habits, which means you can, too. “What we know from lab studies is that it’s never too late to break a habit. Habits are malleable throughout your entire life,” Duhigg told NPR.

Habit #2: Stop spending more than you earn.

Who do you think you are, the U.S. government? Even America’s once-ballyhooed fiscal deficit is shrinking–it’s now $492 billion, or 2.8% of the economy, down from $1.4 trillion (9.8% of the nation’s GDP) in 2009 at the height of the financial crisis, according to the Congressional Budget Office.

How is your own personal deficit doing? About one in five Americans spend more than they earn, and 36% break even, research from the National Financial Capability Study shows. Your goal must be to join the 41% of Americans who spend less than they earn.

Habit #3: Stop ignoring your bills.

A 21-year-old woman with medical bills looming recently told this NerdWallet writer that her pattern for prioritizing what bills to pay is this: When a collection agency calls, she pays the bill. This kind of financial firefighting guarantees she will veer from crisis to crisis as her credit score burns.

Payment history carries a huge weight on your financial future; more than one-third of your credit score is judged by your ability to pay your power, car insurance, and credit cards on time. If you can’t, work out a payment plan with your provider before it goes to collections.

Habit #4: Stop using your credit cards like free money.

Credit cards are a weapon in your financial arsenal. Like all armaments, they can be used in strategic defence or to shoot yourself in the foot. Too often, it’s the latter–the average U.S. household carries $15,480 on credit cards.

That plastic in your pocketbook is the greatest enabler of bad money habits, allowing you to spend on a whim and forsake all budget plans. Sticking to a budget should be your most faithful money habit.

Habit #5: Stop thinking you’re not smart enough.

Money matters can quickly confuse. In the rollout of the Affordable Care Act, many consumers struggled to understand basic health insurance terms such as “deductible,” a survey last month by the Kaiser Foundation found.

We live in an age where consumers are forced to take control of their own financial lives, whether it’s being smart with health insurance or guiding their own 401(k) plans to invest for retirement. Learn the lexicon of finance. “I used to catch myself saying, ‘Investing is hard. I just don’t understand it.’ This gave me permission to avoid learning how to invest,” writes Ann Marie Houghtailing, author of How I Created a Dollar Out of Thin Air. “Now I say: ‘Investing is a skill. You just have to start small.’”

Habit #6: Stop making it hard on yourself to save.

Old habits die hard, and one of the oldest habits is using checks to pay bills or make savings deposits. “Personal finance habits take longer to change than the way you might switch from one smartphone to another. That’s because money is so important to us,” Fred Davis, a professor of Information Systems at the University of Arkansas, told Marketplace.

Set up automatic transfers for bill payments. Also automatically have 10% or more of your paycheck sent directly to your savings account. These two steps will go a long way toward building good money habits and credit scores with the least amount of effort.

Habit #7: Stop complaining about your paycheck.

Whatever energy you’re spending complaining about the size of your paycheck takes energy away from finding ways to improve your bottom line. Think you’re being underpaid? Negotiate a raise or at least have a chat with your employer to understand what’s needed to see a bump in pay. If you’re valued, your boss will see the implicit threat that you may leave for a higher-paying job (which, of course, you should be looking for).

Investigate ways to build other streams of income. Look at ways to improve your skillset. Just stop whining and do something about it.

Habit #8: Stop your Starbucks dependency.

If you’re like a lot of people, many of the receipts in your pocket are for caffeine pick-me-ups. That drip-feed coffee habit costs half of the American workers nearly $1,000 per year, according to a 2012 survey by Accounting Principals. The survey shows that two-thirds of American workers buy their lunch rather than bringing one from home, costing an average of nearly $2,000 a year. Worse, Americans throw away 40% of the food they purchase each year, about $165 billion worth, which works out to $2,275 in the bin for the average family of four, according to the Natural Resources Defense Council.

Planning meals should be in lockstep with planning your budget. Eating out costs you much more than you think.

Habit #9: Stop thinking more cash brings happiness.

OK, money does bring happiness, but only to a point. A 2010 study by Nobel Laureate Daniel Kahneman and Angus Deaton found that emotional satisfaction in life rises with wealth until income hits $75,000 per year. Purchasing experiences and giving to charity have a much longer shelf life for our well-being, research suggests.

Still, the serenity of being free from debt brings its own kind of glee. Look how much fun these people are having…

How To Become A Millionaire

A private jet, a mansion overlooking the ocean, and a private island on the Caribbean; if there is one goal in life that is oblivious to the distinctions of race, religion, and geographical location, it’s to be abundantly wealthy

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However, achieving millionaire status is as good as praying for money to rain down from the sky if one does not forge a determination to shed old habits and mindsets, and the discipline 7 to do something about it.

For those who want to realize their dream of becoming a millionaire, it is not entirely far-fetched. Here are the do’s and don’ts that may help you in your journey to becoming a millionaire.

Do: Have the courage to work for yourself

While not completely impossible, most people can attest to the fact that the journey to becoming a millionaire is exponentially longer when working for someone else.

Being able to climb the corporate ladder and finding a company that can afford to pay you a high salary aside, working for someone else means you’re trading your time and skills for money; and since your time is limited, your ability to earn is also limited.

Don’t: Be impatient

The road to being a millionaire is paved with knowledge, experience, and knowing the right people; all of which can only be attained from years of working under someone (or a group of people) who already possesses them.

Do: Believe in becoming a millionaire

Based on the law of attraction, the first step to become a millionaire is to start acting like one. Becoming a millionaire is as much the way you think as it is the actions you take. Everybody wants to be a millionaire but not everybody believes that they can be or that they deserve to be, and it is this lack of belief that causes wealth to elude them.

Warren Buffet, widely considered the most successful investor of the 20th century says “I always knew I was going to be rich. I don’t think I ever doubted it for a minute”.

Don’t: Let your mindset weigh you down

As mentioned above, many do not believe they deserve to be a millionaire, in fact, much associate wealth with corruption, evil, and ignobility.

To be on track to be a millionaire, you should purge this mindset, stop undervaluing yourself, and know that you deserve the rewards of your hard work.

Do: Be tenacious and open to learning

Nobody ever said that becoming rich is easy – in fact, your journey to wealth is almost definitely going to be riddled with people who will get in your way, frustration, and even failure.

Hold firm to your beliefs, get up after every failure, and most importantly, learn from your failures and the failures of other millionaires.

A good example of a tenacious wealthy man is Donald Trump who despite having filed for bankruptcy numerous times and having racked up a personal debt of over US$900 million in 1991, is worth US$3.5 billion as of September 2013.

Don’t: Be a self-absorbed snob

The biggest obstacle to learning is thinking that you already know everything there is to know. When you are unable to learn, you are unable to manage your wealth as it grows; every decision you make that concerns your finances must be built on a solid foundation of knowledge.

Quoting Warren Buffet once more, “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction”.

Do: Live beneath your means and enjoy the least expensive things in life

Part of becoming a millionaire is to be thrifty; because money spent on lavish and expensive things is money not going towards building your wealth. Identify the things you enjoy doing now and continue to do those things, because if you can afford them when you’re not a millionaire, you can definitely afford them being one.

Don’t: Get caught in lifestyle inflation

Lifestyle inflation occurs when you raise your standard of living following an increase in income or wealth, which ultimately results in the status quo (i.e. you’re no better off with more money than you were without) or worse.

A few pointers to manage lifestyle inflation includes:

• Don’t immediately spend more when you earn.
• Don’t collect things that require a substantial and continuous injection of funds.
• Get a car of an ordinary brand that suits your needs.
• Stop equating spending with happiness.

Personal Finance Tips from Billionaires

Many people instinctively roll their eyes at the thought of getting personal finance tips from rich people. After all, advice like "Buy topaz dog collars instead of diamond ones" doesn't exactly resonate with someone who has to stretch every paycheck to make ends meet. But there are some solid tips from very wealthy people that make sense regardless of your financial situation. Here are some personal finance tips from billionaires that can apply to just about everyone.

Start Early

Carlos Slim Helú is a Mexican businessman who was ranked as the richest person in the world for a few years (Bill Gates regained the title recently.). Slim's personal finance tips reflect commonly held wisdom among wealth-building experts, including this very basic tip: start early. If you're 45 and struggling, this may seem irrelevant, but in your case, the advice should be changed slightly to "start now." The sooner you start managing, saving, and investing your money, however, limited, the better off you'll be as long as you avoid mistakes like throwing all your investment money into one stock. Slim lived this advice, buying shares in a Mexican bank at age 12, and earning 200 pesos a week as a teen working for his father's company.

Find Your Passion

Your bank account may be empty, but believing in yourself at the most fundamental level costs nothing. As billionaire Oprah Winfrey said, "You become what you believe. You are where you are today in your life based on everything you have believed." Change is possible whatever your situation and the first step is believing in yourself.

Closely related is finding out what your passion in life is, whether it's sewing, animal rescue, or writing software.

Christopher Paul Gardner is "only" a millionaire, but he was a homeless single father for a time. Carmine Gallo had the opportunity to ask Gardner his secret to success, and Gardner said, "Carmine, here's the secret to success: find something you love to do so much, you can't wait for the sun to rise to do it all over again." Maybe you can't start that design business, but you can go online or go to your library and start learning about it, and the sooner you do so, the better.

You Don't Have to Game the System

Billionaire Warren Buffett lives in Omaha, and he made his investment fortune on the fundamentals: focusing on companies with strong annual cash flow, and choosing companies that aren't at risk of technical obsolescence. Buffett spent the early part of his career investing in insurance companies. It's not sexy, but it obviously worked. Whether you have $50 to invest in or $5,000, sticking with the fundamentals is smart.

Simplify Your Life

This personal finance tip is similar to the previous one. Warren Buffett lives in a house he bought in 1957 for $31,500. Carlos Slim has lived in the same house for more than 40 years. Constantly pursuing things you don't need puts you on a financial treadmill, not an upward escalator.

Walking and Taking Public Transport Is Nothing to Be Ashamed Of

John Caudwell, David Cheriton, and Chuck Feeney are billionaires you probably haven't heard of, but all three walk, ride bikes or use public transport for everyday getting around. It's easy on the bank account, and better for the environment. If these guys aren't ashamed of taking the bus, you shouldn't be either. Haters are gonna hate. Ignore them.

Cars Are Consumer Goods

Ingvar Kamprad of Ikea drives a 10-year-old Volvo, and Walmart billionaire Jim Walton drives a 15-year-old pickup truck. Don't waste time on the idea that a car is a status symbol. Sure, if you're a car aficionado, there's nothing wrong with restoring or buying that sweet ride you've dreamed about, if you can afford to. But for most people, including rich people, getting from Point A to Point B in safety and reasonable comfort is sufficient. Some personal finance tips are about distinguishing needs from wants.

When you experience financial difficulties, it can be a little much to take listening to advice from billionaires. But some very wealthy people started from very humble backgrounds. Whatever your financial situation, you can improve it, and personal finance tips offered by the very wealthy can make sense in just about any situation. Buy low, sell high, and don't waste money. Find your passion and make time for it, even if you're working at a wage-slave job. These aren't just tips for financial success, but for making the most of your life, and isn't that what money is supposed to help you do?

Source: https://www.mint.com/personal-finance-4/personal-finance-tips-from-billionaires

12 Things Financially Successful People Do Differently

What would financial success look like for you? Certainly, everyone has a different definition. For me, it's not about having more money than I know what to do with. It's about making wise decisions with the money that I have.

It's not all about pinching pennies, although, there is a place for managing expenses and keeping them to a minimum. It definitely involves entrepreneurship and generating multiple streams of income. Not so that I can be rich, but that I can give more, provide for my loved ones, and create more freedom and time to do the things that interest me the most.

If that definition of financial success relates to you, consider these 12 things you can bet financially successful people are doing differently than the average Joe.

1. Have an eye for entrepreneurship. Financially successful people don't just think about how to manage expenses are cut them back when times are tough. They think about ways to increase their income. They are constantly on the lookout for new ideas that will allow them to leverage their skills and abilities to generate additional income.

For them, there are two parts to a budget. Expenses and income.

People often just focus on spending and expenses when there is a world of opportunity out there to increase the income side to not only meet expenses but support their long-term goals and plans. You don't have to think big in this area or come up with the next product on "Shark Tank."

Instead, think about ways you could generate an extra $500 a month. How about $1,000? You get the idea.

2. Assemble a team of experts. I constantly hear about how successful people surround themselves with the right people to support them in what they are doing. Personal finance is no different. Who said it had to all be personal, anyway?

Successful people have identified where they are experts and where they aren't. Most people will find that at some point in their lifetime they need a good family or business lawyer, accountant, financial counselor (short-term decisions, budgeting, debt management, etc.), and financial adviser (long-term decisions, retirement planning, etc.) to help them along the way.

Seek out these people now so you don't have to hunt for them later. Aside from the lawyer, the other three subject matter experts are people you'll want to meet several times a year.

3. Minimize taxes. Financially successful people look to minimize their tax burden in order for them to get the most out of their money and investments.

How do they do this? As I mentioned above, they have a certified public accountant on their team so they don't miss applicable deductions when it's time to file their taxes.

They also invest pre-tax dollars in tools such as a company 401(k) up to the employer match. They also invest after-tax dollars in a Roth IRA to avoid paying taxes on their earnings in the future.

It's always better to pay taxes on today's dollar versus tomorrow's! At the end of the day, taxes are every American's responsibility, but there is nothing wrong with taking advantage of tax benefits to the degree the law allows.

4. Never stop educating themselves. Walk into the house of the financially successful and you'll perhaps find the latest issue of Money magazine, Entrepreneur, and some financial staples, such as Dave Ramsey's "Total Money Makeover," anchoring down their book library.

That's not to say that they spend all their time reading, rather they stay informed on the latest tips and ideas and seek to be inspired by others in the financial and business industries.

Even the most financially successful know that there is plenty to be learned from others and life's journey always demands new strategies and ideas.

5. Build Wealth. Building wealth is a top priority in their plans and it's done with steady plodding over time, not overnight. The financially successful seek to maximize retirement investments via their 401(k)'s (up to employer matching) and Roth IRA's but go further in creating assets that appreciate in value.

Such assets come in the form of businesses or real estate that can eventually be sold or can generate a monthly income to support them later in life or even replace the need of working for another employer in a full-time capacity. Time is extremely valuable and the investment in assets, which may require work upfront, creates free time once it grows in value, and produces passive income.

6. Don't deprive themselves. While making wise business and financial decisions is core to their nature, they don't deprive themselves of having fun. Doing so would only create more of a tendency to spend money later in life. That's why they make the most of the journey, budgeting for family vacations, date nights, and time with their family.

While these seem like expenses on the surface, they can also be viewed as investments targeted toward their most valued relationships. They also know that it's important to celebrate accomplishments along the way so they can be recharged to accomplish their next business or financial goals.

7. Set goals. And speaking of goals, the financially successful have them. Who needs goals? You do if you have dreams and aspirations you want to accomplish in life. Interested in replacing your day job with a small business or generate passive income while you sleep?

Doing so requires a plan and setting SMART goals (specific, measurable, achievable, realistic, and time-bound) to keep you moving. Otherwise, you'll squander time and just tell yourself you'll get to it tomorrow.

Setting SMART goals works for their personal finance goals too. Such financial goals help with saving more money and managing spending from month to month.

8. Reinvent themselves. The financially successful know that things change with time and you can't always stick to yesterday's goals and plans. New opportunities arise all the time whether it be in business or in the tools used to manage their finances.

The last few years have seen a big movement in Cloud technology and how people can now manage their finances online with applications such as Mint, Ready for Zero, Betterment, Credit Karma (for credit scores), and many more.

There is information at our fingertips and the ability to access it anywhere, anytime. From a business standpoint, social media is here today, but what will it look like tomorrow, and what business opportunities will the financially successful capitalize on in the future?

9. Help others. Financial success isn't always about looking in the mirror. It's about knowing what's within and the most successful know that acquiring money can't be the top priority in life. Putting money first tears apart relationships and the race to acquire more can never be won.

The financially successful keep money in its proper place by giving it away. Yes, they make giving their top priority. They give to their house of worship or favorite charity, as well as look to help others.

10. Avoid personal debt. Debt is the number one thing that robs people of time and freedom. Why? It requires time to work to generate income and make payments. Sometimes that requires overtime work!

Brearin Land, financial adviser and CEO of Irvine Wealth Management adds, "Being weighed down by debt puts a damper on a family's ability to meet their retirement goals down the road. Don't pass the buck to yourself. Staying out of debt allows you to buy life's most important asset when you need it most -- time."

Without debt, you have a lot more flexibility and most importantly, get back the time to invest in wealth building activities such as starting a business or in creating products and services to sell. The financially successful know that personal debt is a hindrance and they do everything they can to avoid it.

11. You Down with OPM. While personal debt might be a hindrance, the right kind of debt could give your business the edge it needs. Jude Wilson, financial strategist and founder of Wilson Group Financial, says:

"Many financially successful clients I work with view the use of debt very strategically. Their focus is, "how can I use "other people's money" to enhance my business opportunities. This is in stark contrast to the way many see debt, as a way to satisfy more immediate desires, like that next grand vacation or a means to purchasing that dream mac-mansion."

Financially successful people see debt as a tool to purchase or own a greater percentage of an investment -- that if successful, could result in earning far more than the interest on the loan. Of course, there are those of us who use debt irresponsibly and others who view debt as something to be avoided at all costs, but the financially savvy relish the chance to leverage debt to maximize returns.

12. They have persistence. Finally, you will never be successful unless you have persistence. This characteristic is never been more important when striving to attain financial goals, overcome obstacles, and certainly, in growing a business into the black.

The financial success is persistent and doesn't give up when the little voice inside says to do so, or when naysayers try to hold them back. Persistence pays off debt, increases retirement savings one percent at a time, and continues to create and market products when you don't think anyone is listening.

There you have it. 12 things of financially successful people do differently. They sound simple on the surface, but how many people in your life do you consider to be financially successful?

Not everyone has the discipline and persistence required. Think about the people in your life you'd like to model after and consider how they live out these 12 things.

Invite them to coffee or dinner and talk about their success, these 11 characteristics, and perhaps learn more things you can add to the list.