5 Things Wealthy People Do With Their Money That You Don’t
You’ve been working really hard all your life but, still, you can’t seem to get to that point where can call yourself wealthy. You might ask yourself if you have been doing something wrong, or if all your efforts are just not paying off. The truth is successful people tackle things differently. It is this unique mindset that paves their paths and opens up more opportunities to grow wealth. Here are some things they do that you probably do not.
Almost all high-net-worth investors would agree that investing in long term goals are way more important that funding current wants and needs. Greg McBride, chief financial analyst at Bankrate.com, says that he finds the single most important wealth building tool to be delayed gratification. “If you are spending first and trying to save what is left, you will often find that nothing is left over,” says McBride.
You should consider that if you put away $100 a month for retirement rather than spend it on groceries or something to make you happy, you will have $40,000 at the end of 20 years if you get a 5 percent rate of return. Just spending that amount each month only means that you would have missed out on $15,000 in earnings. While you cannot ignore your needs, just make sure to know the real difference between a need and a want.
Keep Your Cool
Wealthy people have personalities that normal people typically do not have. One of such characteristics is that they are able to keep calm and work through stressful and unpleasant situations.
In “The Science of Success” by Napoleon Hill, who studied the lives of more than 500 successful people, he advises that you should adopt what he calls a “million-dollar personality.” This means you have to adjust to all circumstances, whether pleasant or not, without blowing your top. Another observation says that 43 percent of poor people admit to losing their temper at least once a month, which is a stark contrast compared to just 19 percent of the wealthy.
Use Credit to Your Advantage
While most people are paralyzed with interest rates or credit, two out of three high net worth investors say that credit can be considered as a decent way to built wealth. Four out of five would say that they know when and how to use credit to their own advantage.
Just like any other credit, this strategy too has its risks. Credit can be costly, but financial experts can spin this positively. One such way to take advantage would be to pay off credit card balances every month and use a rewards card to earn cash and other perks. You could also pay down your student loan on schedule instead of chasing it around and use that extra money for investments or retirement.
Set Goals and Stick to Them
Idan Shpizear parlayed $3,000 into a $27 million business called 911 Restoration, which helps homeowners recover from water damage. His secret? Focus. He says that focusing on goals marks the difference between survival and success.
When people get into business or finance, they get too excited and dish out on what they want. They do all this without having a real vision or strategy. If, however, you set a goal and keep persistent, your life will surely change.
They Build a Powerhouse Network
As the old saying goes, birds of the same feather flock together. This is particularly true for a lot of rich people who put in extra effort and resources so they could rub elbows with people who would be to their advantage later on. Successful people do what they can to widen their circles of acquaintance, whether it be through social groups, sports clubs or business organizations. These kinds of people always find a way.
You do not really have to go out of your way to expand your network. Just tap into your existing network first. You can reach out to your old classmates or professors or bond with your colleagues. Your friends and family members surely have people that you can connect with, as well.
Hard work, discipline, and persistence are essential to success. If you work hard all your life, your hard work will eventually pay off if you know how successful people do business. Do you agree with these tips? Share with us your thoughts in the comments below.
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