WHY do rich people have so much money? Maybe for some it was a breeze due to inheritance or rich parents, but for others becoming wealthy is down to hard work and making smart choices in life.
According to a study of very rich people accumulating wealth doesn’t just happen by accident, it’s a process. You have to a plan. You need to adopt good money habits, or you will never be able to save. It just won’t happen. So what do rich people know about managing money that the average person could learn from? Well, here is some insider advice straight from wealthy people’s mouths.
Be Alert: Rich people keep a close eye on their spending. Even though they might have money to burn, they always track their spending. Always go through your monthly bills to know where your money is going and to uncover unused or unnecessary expenses that can be deleted from your spending.
Smart Wheels: Rich people don’t all drive around in fancy brand new cars – quite the opposite. Rich people know that new cars lose value as soon as you drive them out of the shop. Therefore what they do is buy good quality used cars. Forty-four per cent of the rich in the study purchased good quality used cars instead of a new one.
Think First: The wealthy don’t make spontaneous purchases, because they know they’ll end up paying more than they otherwise would.
Rich people are controlled and shop around for the best price before committing to a purchase. Shopping for bargains is a rich person’s habit!
Saving is a Priority: Wealthy people understand the importance of saving and establishing good saving habits. They meticulously set aside money each month for different things like, retirement, bills or unexpected expenses. They save first and spend what’s leftover.
Developing good money habits is empowering and it will increase your wealth over time. But remember it takes time and discipline.