Have you ever wonder what wealthy people do with their money? If you are thinking luxurious yacht parties, extravagant shopping spree, and fancy high dining, you’re in for a surprise. Most wealthy people have some amazing habits on what they do with their money. Below are 5 examples that we can all learn from.
- They really pay attention to small expenses
Being wealthy means you have the money to live extravagantly, but it doesn’t mean you need to. While most of us are prudent when dealing with huge investments or purchases, we seldom sweat about splurging on the small stuff.
Imagine how a snowball can create trigger an avalanche. It’s these small expenses that will snowball into a hefty sum. Wealthy folks are pretty particular about what they spend on because they understand this concept very well. The consequences can be dire if you let the small things spin out of your control.
- They are very clear about their future
A fool and his money soon parts. It is very easy to spend money on instant gratifications, but spending without a clear thought for tomorrow is simply asking for trouble.
Have you ever asked yourself what you’d do if you wake up rich tomorrow? How about a month from then? A year? What comes next? Do you have a clear idea of what you’re going to do with all that money?
It’s better to focus on your mid and long term objectives for your wealth accumulation, and work out a plan on how to get there. Your plans can change along the way, but your focus should always remain clear.
- They don’t bother about impressing people
I know. Rich people always love showing off right? That explains the flashy cars, expensive mansions and designer labels. While I cannot deny that there are those who take pleasure in flaunting their wealth, there are also many who are very unassuming.
It’s one thing to use your wealth to enjoy the finer things in life, but it’s a stretch to try and impress people, especially those you barely know, with your materialistic purchases. It just doesn’t make any sense, period.
Most wealthy people work insanely hard to acquire their wealth because they know that opportunity seldom knock twice, and that they have a limited mental and physical capacity to build their wealth within this window.
Besides earning a day wage, most of them also have multiple streams of revenue either by running their own businesses or through well placed investments, thus maximising their earning potential.
- They save a huge portion of their income
Contrary to what you may think, wealthy people are firm believers in preparing for rainy days. It’s just that they don’t really subscribe to the idea of putting all the money in a bank.
Most of the time, wealthy people are savvy investors who prefer to roll whatever money they have into investments that’ll bring them more money in the long run.
Quoting from Warren Buffett, “Do not save what is left after spending, but spend what is left after saving.” The rule is to put a certain amount of your income into investments for your financial goals and then spend what’s left.
I hope these simple yet practical tips will help you embark on that path towards the first pot of gold in your life!