It’s easy to envy wealthy people for all the money have; after all, don’t we all want that kind of money?
The thing is, though, that wealthy people didn’t always have that kind of money. Many of them started out just like you and I, but through top money saving skills they managed to build up a heap of wealth that sees us cast those envious glances.
It turns out that wealthy people are just like us; the difference is that they know how to save – while we know how to spend. Let’s take a look at their secrets!
They Pay With Cash
How many times have you entered a store armed with nothing but your card? This creates problems because, unlike $30 in cold hard cash, how much you spend with your card is pretty much limitless.
You spot a nice dress and decide you’ll have it.
You spot a nice pair of shoes and you decide you’ll have them too.
After, all you’ve got your card with you and it will save the day!
Wealthy people carry cash instead of cards; in this way, they find it easier to budget. You can’t spend more than you’ve got in your purse.
They Can Be Thrifty
You might well wonder how wealthy people have so much money. But the funny thing is that millionaires’ tastes don’t always automatically change just because they now have a lot of money. They still look for bargains and they’re not ashamed!
Rather than get ripped-off by an expensive hairdresser, they’ll continue to go for that $30 cut they’ve always had. Why change? Thriftiness is not necessarily a case of being mean with one’s money; it’s often a way of finding value in something. Why pay over the odds for something just because you can?
They Seek Out Deals
Ever bought something only to see it advertised elsewhere for cheaper? You probably shrug and say that it’s no big deal. It probably isn’t if this happens just once. But if you keep on missing out on better deals, you’ll be losing a lot of money.
Wealthy people actively sniff out deals, coupons and discounts. This is how they save a heap of money each year. It’s effective too. And you’re not losing out on quality neither; you’re just spending with a bit of ingenuity.
They Hate Waste
We live in a throwaway society. Rather than use up all the vegetables we bought during our weekly shop, we invariably throw half in the refuse bin. Rather than finish off a block of cheese that has been sitting in the fridge for two days, we replace it with a brand new one.
Our waste extends to many areas of our life, and it’s costing us money. It seems that the less money we have, the more we waste. Weird! Wealthy people loathe waste; they’ll get as much as they possibly can out of something, knowing full well how far a penny can stretch.
They Set Goals
Saving without a purpose won’t get you anywhere. After several months of saving, you’ll inevitably start asking yourself why on earth you’re living like a pauper when you could be taking a few vacations. After all, life is too short to save just for the sake of saving.
Wealthy people don’t save simply for the sake of saving. They have a purpose. They set short-term and long-term goals, and these act as motivation to stick to their saving strategies. Perhaps they save for an emergency fund, a down payment on a new house, a car, a big vacation, and so on.
They Know Their Incomings And Outgoings
You could be trying really hard to save, but if you don’t know your incomings and outgoings, how do you really expect to make significant savings?
Wealthy people are fully clued-up on all their incomings and outgoings. This helps them to keep a cap on their spending and means they are able to put away a significant amount of money each week. If you only assume that your incomings and outgoings are such and such, you might end up spending more than you’re actually earning! Disaster!
They Manage Debt Well
Somebody once said to me that everybody gets into debt at some point in their life. If this is true, wealthy people are certainly very good at getting out of debt and living the good life.
Ordinary folk, conversely, are often very bad at getting out of debt. Wealthy people have a strategy: They know that unexpected emergencies occur, such as your car breaking down. Before you know it, you’re hit with a $500 repair bill. But how do you pay for it when you’ve just spent $600 repaying a debt?
Wealthy people cut their monthly debt repayments in half; instead of repaying $500 towards a debt, they put $250 towards it. The remaining $250 goes towards an emergency fund. Clever thinking!
They Avoid Temptation
Wealthy people are incredibly stoic. They see the long-term picture, and they refuse to give into their emotions. They are cool, rational, logical shoppers; they are not emotional shoppers. This means that, rather than give into a whim that would see them splurge $300 on a pair of shoes simply because they’ve caught their eye, they think of the long-term picture. They save their money for something more important.
They Control What They Spend
Wealthy people are very good at living below their means. They never live beyond their means, which is often the key failing of people who can’t save.
But rather than stuffing money underneath their mattress and living like a mean old Scrooge who doesn’t even buy a Christmas present for their children, wealthy people are very good at controlling their money. They spend wisely, and they don’t indulge in mindless spending habits that are not in their control, such as gambling or the investing in the fluctuating stock market.
Their Saving Goals Come First
Yes, a wealthy person might be tempted by a new car. They might be tempted by a season ticket at their favourite sports team or even a new kitchen. But they won’t pay for anything until their personal saving goals are sorted first.
Personal saving goals are paramount with wealthy people. All spending is secondary. If their monthly saving goal is complete, they can spend a little. Spending before your saving goals are complete will only wreak havoc with your budget and you might end up overspending.