Summary of "The Big Short" by Michael Lewis

Introduction: Understanding the Rich Habits by Thomas Corley

"Rich Habits" by Thomas C. Corley explores the different habits that distinguish the wealthy from the poor. Corley argues that wealth is not a matter of birthright but rather the result of developing specific habits that lead to financial success.

Thomas Corley, a certified public accountant and financial planner, began researching why some of his clients thrived while others struggled, even when their businesses earned similar revenues. After examining all business aspects, Corley found no significant differences. However, when he inquired about how his clients spent their time outside work, he realized he had been asking the wrong questions.

Corley then created 21 questions to ask his clients, business partners, and acquaintances. The insights he gathered from these questions are detailed in his book, "Rich Habits." This book is particularly relevant today, where consumerism is rampant, and many people live paycheck to paycheck. Corley’s findings reveal that the wealthy have specific habits that help them build and maintain their wealth.

However, Corley also discovered that it’s possible to break the cycle of financial struggle. Many people have recognized the importance of living below their means and investing in assets. Although it may require some initial effort, the long-term rewards are substantial.

Summary of Rich Habits by Thomas Corley

In "Rich Habits," Thomas Corley shares the findings of his five-year study on the habits of the rich and the poor. He presents these findings through a fable, a popular format when the book was published over a decade ago.

Based on his research, Corley developed the "Rich Habit Promises," a set of principles designed to guide individuals toward financial success. One story in the book follows Phoenix Upman, who, during a moment of despair, encounters Champ Dailey, a successful person who had once faced similar challenges. Dailey offers Upman a chance to turn his life around by following the "10 Rich Habit Laws" introduced to him by a man named JC Jobs.

JC Jobs advised Dailey to practice these 10 principles for 30 days and then meet again. According to Dailey, adhering to these principles transformed his life and allowed him to accumulate wealth. The 10 principles are part of the Rich Habits Training Program, which Dailey introduced to Upman.

Throughout "Rich Habits," similar stories are told, where one person sponsors another into JC Jobs's Rich Habits Training Program. These vignettes illustrate how adopting rich habits can lead to significant positive changes in one's life. One such story involves an accountant who becomes a single parent after his wife passes away. Unable to afford her cancer surgery, he begins a research project to uncover the secrets to success. By incorporating the rich habits into his life, he starts to see improvements, and his revenues begin to grow. This accountant is none other than JC Jobs himself.

The 10 Rich Habit Promises

1. I Will Form Good Daily Habits and Follow Them Every Day Practicing good daily habits is essential for success. Perform a self-assessment to pinpoint your strengths and weaknesses. Be honest in your evaluation. Record your bad and good habits in a spreadsheet, and focus on replacing bad habits, such as excessive TV watching, with good habits like daily reading in your industry.

2. I Will Set Goals for Each Day, Month, Year, and the Long-Term Successful people are goal-oriented. They create daily to-do lists representing their short-term goals and have long-term goals they aim to achieve by a specific date. Start your day by listing your tasks in order of importance and focus on accomplishing them.

3. I Will Engage in Self-Improvement Every Day Continuous learning is a hallmark of successful individuals. They read industry-related materials and strive to improve their knowledge. Engaging in self-improvement activities sharpens the mind and opens up new opportunities for career advancement.

4. I Will Devote Part of Each Day to Caring for My Health Health is a priority for successful people. They eat balanced diets, exercise regularly, and avoid overindulging in food and drink. Maintaining a food journal can help monitor daily intake and ensure a healthy lifestyle.

5. I Will Build Lifelong Relationships Every Day Building strong relationships is vital for success. Successful people nurture their connections by remembering important dates, celebrating milestones, and offering help without expecting anything in return. Networking is a key component of their success, and they focus on fostering mutually beneficial relationships.

6. I Will Live Each Day in Moderation Successful people practice moderation in all aspects of life, from spending to consumption. They understand that excess can lead to negative consequences and strive to maintain balance.

7. I Will Accomplish My Daily Tasks and Adopt a "Do It Now" Mindset Procrastination is the enemy of success. Successful individuals prioritize their tasks and take immediate action to accomplish them. Adopting a "do it now" mindset helps them stay productive and achieve their goals.

8. I Will Practice Positive Thinking Daily Positive thinking is a powerful tool for success. Successful people use affirmations and positive self-talk to maintain a positive outlook. They control their thoughts and emotions, ensuring they stay focused and motivated.

9. I Will Save 10% of My Gross Income Saving is a crucial habit for building wealth. Successful people prioritize saving a portion of their income and invest it wisely. This habit allows them to build wealth over time.

10. I Will Control My Thoughts and Emotions Every Day Emotional intelligence is essential for success. Successful individuals manage their emotions effectively, making rational decisions even in stressful situations. They maintain a calm and composed demeanor, which helps them navigate challenges with ease.

Conclusion: Applying the Rich Habits

Thomas Corley's "Rich Habits" provides valuable insights into the behaviors and habits that separate the wealthy from the poor and middle class. These habits, ranging from saving money to networking, are actionable and can be implemented immediately. If you want to improve your financial situation, start by adopting these habits into your daily routine. Even if you can’t implement all of them at once, start with one or two and gradually work your way up. The key is consistency and commitment to change.