Sometimes, it is utterly amazing how these “rags to riches” stories puzzle everyone. Do these people possess an amazingly extraordinary knack that makes them make billions? Do they strive to save a massive amount of their earning and use their shrewdness to double their earnings?
Whereas most personal finance experts will presumably tell you that there’s no such thing as a secret to becoming rich, of course, everyone amongst us wants to be and remain opulent. And, everyone is interested in saving the wealthy people’s way, so this piece is written for “everyone.”
“Dress for the job you want, not the job you have.” – Anon.
How they dress (read save money) en route to financial independence and subsequent flamboyance
In this article
The rich have the proverbial 70/30 rule – the millionaire’s formula
Saving a colossal chunk of whatever you earn is, without a doubt, the best way of preserving your wealth. You can’t, obviously, impact the way interest rates are changed and how inflation happens, but the discretionary aspect of your lifestyle can be modified. In short, 70% of what you get is a realistic figure enough to warrant creating a special savings account.
Ever noticed that salary isn’t the entire story, as per the frugal?
However, how far the corporate ladder takes you, your earnings will eventually hit the “plateau” stage. The ordinary will stagnate for a while before beginning the short descend. Alternatively, the rich will have already made their jobs work for them.
You ought to refer to an award-winning finance book called “Rich Dad, Poor Dad,” by Robert Kiyosaki to understand it well. Nevertheless, investments that yield passive incomes are mostly preferred by the wealthy.
The rich own their future
It is often pretty easy to get whatever we like with the required zeal and spirit, but it is the “spending” part that eats us up. However, those who have successfully conquered the problem simply focused on their future. The rich also do just that; they look at their tomorrow now that they are well-heeled today.
“You can be young without money, but you can’t be old without it.” – Tennessee Williams
They love bargains
According to a survey done in 2013, those with five-figure incomes love getting the most bangs for their cash. From using coupons to the timing when the sales are at their lowest, their affection towards bargains is quite surprising. They take advantage!
Pervasive: they invest wisely
The problem that often ravages the ordinary people out there is their attitude towards petite amounts. Sadly, the same is the differentiating factor between the wealthy and the local population. The affluent know that one plus one equals two and go ahead to invest their cash. And, investment is a unique form of saving!
The rich buy quality instead of prestige
You may have noted that the rich prefer Mercedes over Ferrari. Again, those antique furniture commonly found in the houses of the wealthy are passed from generation to another because they were made to last.
In short, for all the necessary investments in life, buy quality and you will never have to invest in them again. It is that simple!
Say no to debt
It can be quite hectic trying to save and be like the rich while struggling with heaps of debts. The rich are “money vigilant” and will never buy on credit. They are pretty anxious about keeping themselves far from debts. Learn to stretch your money and rack up more by sealing the most potent loophole.
The truth is finally out, isn’t it?