14 Things Rich People Do That Poor People DON'T
14.
They don't save; they invest- Here’s a statement that is way too true.
I'm sure you've never heard about a millionaire becoming wealthy by investing in a savings
account right?
They invest in companies, and stocks to make more money off the money they already to have
and that’s how their wealth continues to grow, and they keep making more, instead of
keeping money in a savings account not doing anything productive with it.
13.
Buy it for life- Most of the world have a false idea about the economy and have this
idea stuck in their heads that buying cheap is always best.
But in reality, it’s better to buy a pair of shoes that cost $100 that will last five
years, instead of a pair of shoes that cost $20 but will only last one year and require
you to make five trips to the store to buy new ones.
Buying things for life is a trend for some but a lifestyle for the rich.
Wealthy people will spend more time investing in purchases before they make them, to make
sure they're buying something that will last as long as possible and get the most value
out of it.
For example, this is why a rich man will buy a $1,000 suit even though the price might
shock most of us, in the long term a suit that costs that much will last for decades.
And if you know how to repair your own clothes it could last a lifetime.
So in some cases buying more expenses things at a higher quality can be a smarter move
in the long run.
12.
Wait for good deals- There have been many studies about people who were offered $5 now,
or $10 in two months and almost everyone chose to take the $5 now.
People seem to have something slightly wrong in our brains because it's clear that $10
would be the smartest choice but most people’s immediate need for money makes them chose
otherwise.
Rich people don't seem to have this problem.
Wealthy people will wait months or longer to get the best value they can for something
and don't rush into get rich quick schemes.
11.
Be frugal- Frugality isn’t just being financially stable, it is environmentally as well!
When someone is really careful, they tend to waste less.
If someone keeps every shopping bag and bow from Christmas, it’s not because they're
a hoarder, its because they realize they're eventually going to need those things again
when the time comes, and then they won’t need to buy them again.
Being frugal can be really enjoyable, and the amount of money you can save just by being
a little more cautious with each thing you buy can be astronomical.
As the old saying goes, “a penny saved is a penny earned.”
10.
Use coupons- Most people wouldn’t expect this one, but tons of millionaires have said
they spend more time finding coupons and discounts than they do shopping.
It’s a common feature that the rich seem to do or at least one of their partners in
the relationship was really mindful of overspending.
We don’t all have to do extreme couponing, but we can definitely do our part to get the
best price for the necessities and things we actually need.
A big difference between the rich and the famous people on reality TV shows is that
the rich use coupons for items they usually need or have to buy for their family.
Extreme couponers chase savings whether they need it or not.
Couponing is an excellent habit of the rich and everyone in between.
9.
Buy second hand- There are some things you don’t want to buy second hand, like underwear,
food or bedding.
But when it comes to just about everything else, rich people are the first in line to
get a bargain by buying things second hand and from antique stores.
Surprisingly a lot of rich people don’t buy cars brand new because they know cars
lose so much value the first few years of a new car.
If they do buy a brand new car, they tend to hold onto it for at least ten years to
make sure they get the full value out of it.
Rich people also love antiques!
And a lot of the time antiques can be cheaper than normal items or furniture, but more importantly,
they love the value of buying things that aren’t brand new.
Every penny that is saved by buying a second-hand sofa versus a brand new couch can be invested
or saved for something else that you need, or that helps secure your finances in the
future.
8.
Budget- All rich people keep a budget even when they don't necessarily need to, and they
stick with it, or they have people to keep track of it and keep them updated about where
their money is going.
Budgeting is so important especially these days as prices on just about everything seems
to keep rising faster than the bankers can print new money.
The most important part of a personal budget is being honest with yourself; you have to
be honest with yourself and make sure you factor in everything you spend.
Rich people will go over their budget for hours, to make sure all diversions in the
budget are accounted for.
There’s a connection between how much time you spend on your budget and how rich you
will get!
7.
Invest in tangibles- At one point the rich become dollar rich, they also do something
that most of us don't do; they invest a portion of their money to tangible goods that enrich
their lives in more ways than just money and materialistic things.
They buy art simply because they love the painting, they will purchase fine wine just
because they love to drink it, they’ll buy brand new, and they’ll buy antiques.
There is a financial benefit to owning those things because they will increase in value
over time.
Rich people are also hard to sell.
When you have one thousand dollars in cash sitting in front of you, it’s very easy
to spend it on a whim.
But not so easy when you have the one thousand dollars tied up in a very expensive bottle
of champagne.
The need to sell your stuff to free up the cash gives you the time to make a more reasonable
decision on whether you really want that one thousand dollar item your lusting for at the
store.
6.
Buy affordable property- For the most part, wealthy people pay cash for their homes or
put at least fifteen percent deposit down.
Rich people usually buy properties no more than two and a half times their annual tax
income.
Rich people also tend to buy older houses, and it's rare that a rich person will buy
a brand new house or have a house built.
This probably has to do with the psychology that the rich have about how value is placed
on quality and not wanting to have the initial depreciation of something new.
It’s usually not the truly rich who buy mega-mansions to show off.
Those properties are usually for the people who have a massive mortgage, massive financial
problems, or a massive ego.
And of course, those few who win the lottery, poor them because most lottery winners will
waste it all and end up back where they were before but way more miserable because of the
loss.
When lottery winners win that much money all at once, usually they are people who come
from nothing and go crazy with spending and buying because they’ve never had that before
and have no one to advise them or to invest, so instead they blow it all within the first
few years and end up back to their old life, such a shame.
5.
The rich associate with successful, positive people- Rich people are aware that attitude
is everything if they continually hang around people that complain about everything from
the weather to the government and always speak negatively, then they’ll most likely start
doing the same thing.
But if the same people start hanging around people who talk about success, opportunity,
and positive things in life, chances are they will start to see the world from a different
perspective and gain victory and positive thoughts themselves.
Instead of the world being a horrible place, it suddenly becomes a land of success and
opportunity.
A good example of this is how immigrants view the United States as a place of opportunity,
while most people that are citizens of the U.S have so many complaints about it.
Quite frankly, it is what you make of it.
4.
The rich think both- Long ago economists came up with the term “opportunity cost” and
this simply means that if you chose one thing, then you are giving up something else.
For example, if I have $5 and I buy a $5 ice cream, then I’m ultimately giving up the
pack of gum that I wanted as well.
This is how the poor think too, they have a set amount of money and they think they
can either spend it on one thing or another and not have both.
It sounds logical but rich people focus on how they can get both and don’t settle on
just having one thing over another.
Let’s say you give a rich person $5, they want the ice cream and the gum, instead of
thinking either or, they decide to get both.
The rich mindset wouldn’t buy the ice cream or the gum initially, but they might buy a
24 pack of water for $5 instead.
They walk down the road, sell each water bottle to people passing by for 50 cents each and
earn $12 total when finished.
Now they can afford the ice cream and the gum and have money left over to spare!
The rich have both mentality, not either or.
3.
Net worth- Poor people will often talk about money regarding hourly pay or monthly income.
Wealthy people know that an hourly income is not nearly as important as someone’s
net worth.
Someone can earn a lot of money per hour or per month, but if they don’t learn to keep
any of it, they’ll still be broke in the end.
A rich person knows that a large net worth will bring lots of opportunities and will
create more wealth in their future.
2.
Constantly learn and grow- Many kids today think that they’ll be able to work just
hard enough to earn their degrees and they won’t have to pick up another book or take
another test for the rest of their lives.
Some might turn this dream into a reality, but they’ll most likely be poor forever.
The rich crave knowledge because they know that the more they learn, the more likely
they are to succeed at the things they want.
The average millionaire reads one book a month because they want to make themselves into
the person they ultimately want to be.
The average broke person will never read and never change anything.
The rich constantly learn and grow, and poor people think they already know.
1.
Don’t look rich- This one is the most significant aspect of the lives of the truly wealthy,
is that people can’t tell their rich just by looking at them.
They can be the regular person living next door, driving an old car, and working just
as many hours as you do.
On the other hand, the person up the street with the fancy luxury life that everyone wants
is probably cash poor and not very happy.
It’s been said by many rich people, that they have every materialistic thing they could
ever want and still aren’t truly happy.
Focus on the best parts of your life, the things and passion that truly make you happy
because at the end of the path that your passion takes you, is the true pot of gold, your happiness.