It’s hard to know exactly what to do in life. The good news is that, in many cases, you don’t need to know. You just have to follow the people who do know what they’re doing. Let’s say, for example, that you went to a fancy restaurant and that you’re the kind of person who doesn’t normally go to these types of places. Rather than figuring out which fork you’re supposed to use for each dish, you could simply copy the person who does look like they regularly go to these types of places. Just like that, you’re in the know.
There are some instances of life where this won’t work. You probably shouldn’t pick a partner based on the criteria of someone else. But for things for which you won’t have much emotional connection, it’s a good strategy.
And it’s an especially good strategy when it comes to money. They don’t teach good financial habits in school, after all. So instead of figuring it all out on your own, why not look at following the rules that wealthy people follow? After all, if it worked for them, then it may work for you! In this blog, we’ll run through some of the most common rules that the majority of wealthy people live by.
You’ll often hear people referring to rich people as “cheap,” and that’s very much a well-earned reputation — and one that makes complete sense. Most people just view buying things as nothing more than, well, just buying something. But wealthy people view it as a transfer of wealth. Even if the item is $10, you’re still transferring $10 of your wealth to someone else. They’re helping the other person to develop their bank account and not helping their own. There’s no avoiding that you have to spend money, but the general mindset of rich people is that the money is primarily theirs. And you have to be careful where and when you spend it.
Pay For Things In Cash
It’s highly convenient to pay for everything with a card. In fact, it’s likely that it was intentionally designed that way; we live in a consumerist society in which it’s beneficial to make it as easy as possible for people to buy things. However, while it’s easy to tap your card, you’ll probably also end up spending more money than you like. Even if you’re just spending $5 – 6 at a time, those small amounts can quickly add up to a fair amount of money. Wealthy people, especially older wealthy people, tend to pay in cash. If you have $100 in cash each week, then you’ll make it last. It’s when you have access to all your money that you can do damage.
Know Your Worth
Wealthy people also understand that there’s a lot of money in the world, and that they can engineer it so that more of it comes their way. At the most basic level, it’s about knowing your worth. Someone who is just happy to have a job will be happy to accept whatever salary is offered. Someone who knows how good they are will ask for what’s rightfully theirs — and this is a mindset that you can take all the way to the top. It’s not just salaries that wealthy people know how to negotiate. They also do the same when it comes to deals and big purchases, some as properties.
Read Up On The Future
The financial world is always changing. It doesn’t stay the same for too long. If a person is clued-up on what the future of finance will be, then they’ll be in a position to put the pieces in place to generate their wealth before that future arrives. We see this now with cryptocurrency. The people who got rich from Bitcoin did say several years ago when the price was low. The people who get rich from crypto in the future will do so with another coin, such as Avalanche (AVAX). Information regarding what is worth investing in is rarely information that just lands at your feet. You’ll need to seek it out yourself — and that’s just what wealthy people have a habit of doing.
Hire Other People
There’s only so much that any single person can know about finance. Collectively, we may know everything, but on an individual basis, that’s not the case. So rather than trying to develop wealth all on your own, and simply ignoring your blind spots, it’s worthwhile looking at hiring other people who are experts in areas in which you do not know everything. Wealthy people typically hire tax consultants, for example, or financial planners. They may also hire an accountant — they’re happy to make the money themselves, but they want someone else to count the dollars and pennies.
Smart About Debt
There’s good and bad debt, and it pays to know the difference. You’ll rarely see a wealthy person carrying around a load of expensive debt, only low-interest debt.
It Takes Time
Finally, wealthy people understand that you don’t become wealthy overnight except in highly unlikely scenarios, such as winning the lottery. If you’re going to build wealth, then you need to have patience. It’s all about planting seeds that’ll eventually come to fruition. We’re not talking about doing things that may yield results in a few months; it could be decades. You can view the path towards building wealth in the same way that you view climbing a mountain. You won’t magic your way to the very top. You’ll get there by putting one foot in front of the other.
There are no guarantees that following the rules that we’ve outlined above will make you rich. There are so many different factors that come into play when it comes to building wealth that there isn’t one magic bullet that’ll push money your way. However, that doesn’t mean that you can’t increase the odds of that happening. And that’s just what the rules we’ve outlined above will do.