It’s no secret that a lot of us are jealous of rich people. We’d kill to have their bank balances, and we find it unfair when others have a lot of money purely because we want it too! But, you shouldn’t be jealous because a lot of rich people got rich because they knew how to manage their money.
Bearing that in mind, here are three things rich people can teach us about looking after our cash:
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Money Makes Money
You’ve probably heard the saying ‘the rich get richer’, and it’s usually used by people moaning that wealthy people are always the ones that get more money. Well, this isn’t a coincidence, it’s because rich people know what to do with their money. More importantly, they know that money makes more money. What this means is that they invest their money into different things that help generate more money. If we’re to learn anything from rich people, it’s that you have to be prepared to spend money to make money. If you have money in your account, that’s just lingering there collecting a poor interest rate, take it out and invest in something that can increase that amount of money over time.
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One thing that everyone should do with their money is think about the future. Not just your future, but the future of your children and their children too. Don’t just think about what you want to do with your money now, think about what you want to do with it in the future, and where you want some of it to go. There are many financial advisors like Derrick Kinney who make a good point in saying that everyone’s vision of the future is unique. You may have plans for the future that others don’t. Either way, you need to spend some time creating a financial plan with the future in mind. Consider what you want to do with your money now that will benefit you in the future, as well as thinking about any money you want to put away for family members in the future. A big part of this plan will be writing a will to ensure your future finances go where you want them to when you die. Rich people do this all the time, they’re always on the ball and thinking ahead as well as thinking about the present.
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Don’t Depend On Credit
Finally, rich people are really good at using credit wisely. They only use credit cards when it benefits them, and never carry around a credit card balance. If they ever use their credit card, they pay off the balance in full and don’t allow it to carry over into the next month. This is how people end up in debt and start fighting for financial survival. Rich people don’t depend on credit to get by, and they didn’t depend on it when they were working their way up the wealth ladder. The secret is finding out the right way to use credit, so it benefits you rather than causes debt.
Bear these three things in mind, and you will start managing your money just like a rich person!