Who do you actually think of when you hear the word “rich”? Evening gowns, traveling, yachts? Are these the only words that come to your mind? Well, that’s true to such an extent but not all rich people lead their lifestyles in such a way. “Rich” should be defined as a state having excess of money and there is a huge difference between ‘rich’ and ‘lavish’. Those who are self-made rich, are the different breed of people as they live differently and think differently. The financially wealthy are the ones who follow certain habits which should be incorporated by all those who wish to be rich but aren’t being able to get back on track. Although you might be able to find different financial blogs that will teach you ways in which you can become rich but do you think that only reading those financial tips will help you become rich? Certainly not! You require incorporating them in your day to day lifestyle. Here are some habits that the rich follow and those that the “wannabe-rich” should follow.
Build wealth by saving cash:
Yes, this might be hard to believe, but the rich people do save money. Rather than eating out, they keep tucking in their dollars into different financial assets that pay them in the near future. As per an opinion by Jean Chatzky, 60% of the self-made rich are there due to their high savings rate. Write down all those areas where you spend money where you don’t need to spend. Be honest and get serious to find out all those cheap alternatives. If you’re someone who loves to shop Starbucks every morning, stop there and change this habit. When you’ve built your fund, invest them in the financial assets and watch it grow with time.
Don’t pay your dollars for things that you don’t need:
You might see your neighbor spend a lavish lifestyle but don’t try to outdo them. Rather stay within your budget when it comes to spending for all those things like your car and house. Are you presently paying $400 for your SUV and do you think that it is simply drinking down your dollars? If answered yes, pare down and cut down your dollar expenses. Determine whether or not you really need an SUV? Could you move on with a mini-van? Would that be a cost-effective alternative? Take a close look at all those lavish upgrades that you have done to your home and then check where you need to cut back. While doing the assessment, if you’re not honest, then you’re simply wasting your time.
Set financial goals and try to achieve them:
Taking steps will be a lot more productive when you know what your financial goals are. The rich are always sure about what they earn and they’re always ready with their plan before they go out to take any step. They always research on the ways in which they can earn the money that they want and they keep setting goals around it. Set financial goals that you can easily achieve as the moment you obtain them, this will boost your confidence. Once you reach your goals, set new ones so that you can always look forward to a new horizon.
Believe in “simple living high thinking”:
Yes, you might not believe this but the truth is that the self-made rich are the ones who lead simple lives than most other people. They don’t have 100 pairs of shoes and they don’t strive to possess them as they know that they won’t require them. So, you should take a close look at your house and get rid of all those things that you don’t need. Think twice before spending your dollars and always go for the simple.
Therefore, only reading the personal finance tips to become rich and build wealth won’t help unless you incorporate them in your daily life. Follow the above mentioned tips and keep debts at bay. Although there’s enough of debt help options in the market, you should try to be safe than sorry.
Guest Posted by Trenton