At some point, I think all kids have said, “I want to be rich and famous when I grow up.” We don’t really know about the baggages that come with being famous or how much money you really need to be rich.
Nevertheless, we are excited as ever to live out this dream. As we get older, we really understand how complex achieving either of the two things are. Most people are never able to become rich and famous.
Those that do become rich don’t get there by pure chance unless they win the lottery. Even those people don’t end up staying rich. From surrounding myself with super successful people, I quickly began learning about the mindsets successful people shared.
In specific, I got a chance to learn about the approach to money the wealthy people shared. In this article, I share 5 perspectives on money the wealthy share:
1. Diversify, Just In Case
Average people tend to put all their eggs into one basket. They see some cash and some success, they become extremely comfortable. You have to remember that comfort is the enemy of achievement.
Wealthy people enjoy the fact that they have seen some success, but they refuse to get comfortable. They understand it can all be gone just as quickly as it came to them. They are constantly focused on diversifying their income sources so that they won’t be screwed if things go wrong.
2. Treat Yourself, Just Not Every Day
I would hate to be extremely wealthy and not spend any of that money on myself. If you work really hard to attain a large amount of wealth, it’s only right that you treat yourself. However, there is a big different between wealthy people and middle class individuals.
Wealthy people treat themselves to luxuries every now and then. Others, treat themselves all the time when they come across some cash. You should probably spend no more than 10% on treating yourself. The rest of the money will have a much better use when invested properly.
3. Don’t Work For Money, Make Money Work For You
A few months ago, I was talking to someone who really wanted to buy a new car. He kept telling me about how he had to work more hours each week in order to afford that car. The problem was, he was focused on increasing the number of hours he worked instead of increasing the amount of money he made for the same number of hours he was already working.
Many people tend to think this way. However, wealthy people don’t believe in this model. They want to work the same number of hours while making a lot more money. How do you do that? Simple. Find ways to get your money to work for you without taking up additional time.
4. Don’t Take On Debt
Wealthy people have either learned some valuable lessons from getting into debt or they refuse to get into debt. You cannot be wealthy if you are accumulating a large amount of debt. I always get people asking me why I only pay with debit when I can qualify for a credit card with a fairly high limit.
The answer is simple. I refuse to give myself the temptation to buy something that I may not have money for on the spot. I do not want to put myself in debt. I have learned from super successful people how challenging it truly is to get out of debt. Stay out of debt and you will automatically see your wealth grow.
5. Understand Where Money Comes From & Goes
There are so many amazing financial tools out there in the market that can tell you exactly where you money is going each month. Not only that, but you also need to really understand where your money is coming from. Tools such as Wave Accounting or Mint can help you manage the metrics behind your finances.
Wealthy people can give you a complete analysis of what is happening with their money. Everyone should be able to do this. If you don’t know how you’re spending your money, you can’t ever really get rich.
Conclusion
In this article, I shared 5 perspectives on money the wealthy share. What perspectives do you share? Feel free to share them below!
photo credit: The Wolf via photopin cc
