Whether you're investing in real estate, stocks, new business ventures, or anything in between, you need to adopt a number of characteristics in order to be successful. And, though some of these characteristics may not come naturally to you, they can - contrary to popular belief - be learned.
The Eight Traits That Every Successful Wealth Builder Needs
Wealthy people are all different. Some start with nothing and work hard to break through, while others are given a strong foundation and maximize the assets that they have. Whatever the case, every successful wealth builder and investor needs the following traits:
1. Patience
"Perhaps the most important thing to remember about real estate investments is that impatience will almost always lead to major mistakes," writes Green Residential, a Houston-based property management firm. "Sometimes, those mistakes will cause you to lose a little revenue, while other times, they'll be big enough that you'll want to count your losses, and get out."
Whether it's real estate or stock market investing, having patience is extremely important. If you jump every single time an opportunity presents itself - or bail at the first sign of trouble - you're going to lose a lot of money. Successful investors know when to make a move, but they've also mastered the art of waiting.
2. Willingness to Learn
One of the greatest quotes of all time comes from Benjamin Franklin, who said, "An investment in knowledge pays the best interest." In other words, nothing pays more than education.
The most successful wealth builders are the ones who're merely willing to learn. This doesn't mean that you're always pursuing formal education, but rather that you're continually exposing yourself to situations that produce growth.
For many, this looks like surrounding yourself with the right people. By continually exposing yourself to those who're more skilled and knowledgeable than you are, you can pick up on nuances and skills that you would've never discovered on your own.
The opposite of a willingness to learn is pride, which is something that can ruin you as an investor. As you choose openness to learning, you'll naturally begin to defeat pride, which is a challenging thing to do.
Franklin had some thoughts on this point as well: "In reality, there is, perhaps, no one of our natural passions so hard to subdue as pride. Disguise it, struggle with it, beat it down, stifle it, mortify it as much as one pleases, it is still alive, and will every now and then peep out and show itself." However, by constantly being open to learning, you can subdue it as much as possible.
3. Ability to Block Out Pressure and Noise
As you progress through your career and begin to build sizeable wealth, you'll realize that your perception about being wealthy and successful was far different from the reality of the situation. While there are many advantages to being successful, you have to realize that an elevated status comes with additional stressors and monumental pressure that didn't previously exist.
Those who can't block out the pressure and ignore the noise aren't successful for long. They eventually make foolish decisions as a result of the stress. However, those who learn how to put on blinders and hone in on what matters will position themselves for prolonged success.
4. Discipline to Avoid Shortcuts
There are a ton of investment scams out there. And, while rookie investors often fall for these shortcuts, it's not uncommon for experienced wealth builders to be exposed to them too. As you begin to make a name for yourself, you place a large target on your back. People will start pushing ideas and strategies on you - many of which are scams. You must be disciplined enough to avoid these pitches.
As you should already know, there are no shortcuts to building wealth. Short of winning the lottery, you can't wake up one morning and suddenly have millions of dollars. While a lot of "reputable" sources will tell you that they have the latest inside information that'll help you earn millions, most of them will be full of it. Having the discipline to avoid these shortcuts is the mark of a highly successful wealth builder.
5. Healthy Skepticism
In life, people often praise optimism and shame skepticism. Optimism is viewed as noble, whereas skepticism is looked upon as pessimistic and negative. In the business world, however, skepticism is a good thing. As a skeptic, your "prove it" attitude will save you a lot of heartache and frustration.
Skepticism is often tied directy to a willingness to learn - at least when it comes to investing and wealth building. When you're skeptical about a particular investment, you're more likely to conduct extra research than if you were naturally optimistic about the same investment. This is ultimately a good thing.
6. Resilience After Failure
Every successful investor has experienced failure. Though this may seem like a strange fact, it's true. Failure can do one of two things. It can either cause you to give up or teach you to push on. Successful people let failure breed resilience - not abandonment.
While failure - especially when it involves a large sum of money - can be intimating, you can't let it dictate your future. Once you become fearful of failure, you start to let this anxiety alter your actions. Don't let this happen.
Successful wealth builders are renowned for recovering. Steve Jobs, Martha Stewart, Walt Disney, George Foreman, and Cyndi Lauper are just a few of the names that come to mind when thinking of people who lost it all and came back stronger than ever.
7. Very Balanced
If you met successful investors, you'll immediately notice that they're very balanced. They aren't thrill seekers, but they also aren't cowards. In other words, they're stable and embrace strategic decision-making. As you'll often hear people say, successful investors don't make good gamblers, and good gamblers don't make successful investors. Remember this simple truth.
8. Goal-Oriented
Finally, successful wealth builders are goal-oriented. Rarely will you see a successful investor chase a random opportunity or deviate from their well-outlined path. They choose a strategy early on and make a commitment to stick to it over the long run.
If you want to be successful, you need to set goals and develop strategies for meeting those goals. While you'll certainly miss out on other opportunities as a result of narrowing your focus, you'll also capitalize on plenty of opportunities and avoid unnecessary mistakes.
Success is Determined in the Little Things
While it may seem like an oversimplification, the reality is that successful investing and wealth building is rooted in the small things. Being able to crunch numbers, evaluate stocks, or recognize prime business opportunities are important skills to have, but sometimes the smallest characteristics can make the difference between success and failure.
Regardless of what you're investing in, the characteristics referenced in this article will help you to become a more strategic and calculated wealth builder. Keep them in mind as you scale your efforts, and don't be afraid to learn from those around you.