I just finished reading ETR’s daily message the other day (www.earlytorise.com) where Michael Masterson writes about the 8 habits that he believes wealthy people have in common. It’s a good article. In a self-evaluation, I have several of these habits, but others I need to work on…

For example, his number one is that wealthy people work hard. I have always heard a variation of this, that they work smart, not hard. Perhaps it is both, but I sure meet a lot of people that work hard and yet seem to be poor because they waste a lot of time working hard without focusing on important tasks.

Many of the other rules seem to be from “The Millionaire Next Door” (interesting statistical book, by the way), like moderate spending, extraordinary saving and inexpensive homes, which seem, at least in my experience, more like rules of people GETTING wealthy, since once you are wealthy, you have the money to change all that (even he admits that his current house, while only 10% of his net worth, is more than a million dollar house). He does make a very good point about the house determining your lifestyle expenses though – that is very true, and it is difficult to create wealth if all of your money is eaten up in lifestyle type expenses. People think they can avoid it, but my experience is that it’s pretty tough to live in the same neighborhood with big houses and big spenders and not upgrade your standard of living at least modestly.

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