Mastering Wealth: Simple Money Habits for Ultimate Success

I recently discovered Paul Sullivan a former financial columnist among his many accomplishments. Reading through his old columns has inspired a slight twist on my perspective on wealth, money habits, and the intriguing choices made by the rich and fabulous.

Paul wrote his "Wealth Matters" column in The New York Times, capturing the evolving relationship between Americans and wealth. From the collapse of Bear Stearns to the final column in October 2021, Paul documented the changing attitudes about what it truly means to be wealthy. Let's take a look into Paul's insights on wealth, the habits of the rich, and the one billionaire indulgence he believes is worth every penny.

Defining Wealth Beyond Dollars

Paul redefined the definition of wealth, asserting it's not about a dollar figure but about what your savings enable you to do. Whether you're a schoolteacher or a billionaire, being wealthy means having the freedom to pursue what you want. I couldn't agree more with this definition!

Billionaire Excess: The Splurge Worth It

Amid extravagant hobbies of the 1%, Paul highlights one indulgence he deems worth the cost – flying private. Despite its steep price tag, the experience left a lasting impression on Paul during a visit to the Gulfstream factory. Other rich-guy hobbies, from massive yachts to sports teams, may lose their charm due to the extensive labor and costs involved.

The No. 1 Money Habit of the Wealthy

Drawing from insights gathered from nearly 5,000 sources, Paul's top money advice boils down to a simple idea: "Have a plan. Write everything down." While super wealthy individuals might have someone managing their finances, the act of regularly revising and knowing where their money stands is crucial. Establishing what Paul calls a "locus of control" through a nuts-and-bolts approach to money is a key indicator of future financial success.

Conclusion: Building Your Financial Future

In Paul's view, a meticulous approach to finances lays the foundation for success. By understanding how much you earn, what you need to live on, and where your money goes, you create a "locus of control" that aligns with the habits of the wealthiest individuals.

As a CPA, it's a habit for me to track numbers all day, every day. I know that is not the same for everyone. Knowing exactly how much money you have coming in and going out is a substantial step forward in building your wealth. This simple yet powerful practice can guide you toward a prosperous financial future.