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This Is Why The Rich Look Poor

This Is Why The Rich Look Poor

When you’re on your couch looking at rich celebrities online, everything about their lives seem so glamorous and perfect. For every event they attend, they get pampered by six or seven set of hands, and often even have an outfit already tailored for them and ready to go. Although we all wish those red carpet moments really portrayed how the rich dress and look on a daily basis, it’s not always the case. If we switch our attention from celebrities for a second and look at the other rich, those who don’t spend all their time in front of the camera, we’ll notice a drastic difference in wardrobe. Not only do the really rich stay modest with their wardrobe choices, but most of them even dress poorly.

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    The question is why?

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    A blog post written for PLRPLR states that “Millionaires are just a different lot of people. They think different. They act different. They spend different. They are different.” The author of the article talks about how his uncle was one of the richest men in Virginia but always dressed like he only had a few bucks to spend per month on clothing. In the article, the author mentions how his uncle dressed so poorly sometimes that you might have thought his washing machine was broken or that he worked in the field due to his extremely muddy boots.

    The media’s depiction of celebrities is all wrong. The rich and famous don’t dress in $1,000 suits or dresses, according to the author, because they’re smarter than that. Why spend thousands of dollars on pieces of clothing that will wash out, wear down, get lost, or get ripped when you can save the money to invest in real estate or open a business?

    That’s how the rich think.

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    RobertPattinsonOutandAboutTotonto3Nov201419

      They prefer to look at efficiency rather than immediate satisfaction. Sure, a $1,000 suit would look amazing and sleek, but you could get a simple tuxedo for about $100 that would also do the job perfectly. As long as the piece of clothing isn’t torn and still follows business etiquette, why spend thousands of dollars just for a designer brand or shinier fabric?

      On an episode of Modern Family from earlier this year, there was a story about how Jay, the wealthy grandfather, wasn’t fashionable. His young, hot wife was always dressing up and putting on makeup, while Jay always wore sweatpants or nerdy glasses. He was extremely wealthy, yes, but he didn’t care about how he looked. As long as he had clothes on, anything went. He preferred comfort and necessity over shiny new clothing or bling.

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      When you are rich, you are confident enough in your potential and knowledge that you don’t feel the need to show off anymore. You know that you have the money and your business shows that you have great earnings, so there’s no need to show off the bling. When you’re rich, you have a different mentality, one that doesn’t revolve around money anymore. You prefer to focus on growing as a person and growing your business instead of debating whether or not you’ve already worn a certain outfit this week.

      There is a famous quote from a very smart person that has always stuck with me, and it goes like this:

      “The rich stay rich by living below their means.”

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      All in all, if you follow what the real rich and famous do, you’ll be a millionaire too. Spending money lavishly just to show off your earnings isn’t going to keep you rich. They might be old values, but it seems to be working for the rich, so why not try it out?

      What do you have to lose? Certainly not money.

      Featured photo credit: Featured Photo Credit: HotBlack via morguefile.com

      More by this author

      Sarah Anton

      Editor and founder of The Fitrepreneur, aspires to improve people's living style.

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      Last Updated on June 6, 2019

      The Average Retirement Savings and How to Save Wisely

      The Average Retirement Savings and How to Save Wisely

      Are you on track for retirement?

      If not, don’t worry, I’m not sure either. I save each month and hope for the best.

      Fortunately, I’m at an age where most people don’t save so I’m ahead of the curve.

      But, what if you aren’t in your 20s? What if you’re near retirement and are looking to gauge where you stand?

      If so, keep reading. Here’s how to prepare for retirement and save wisely during the process.

      What Does the Average American Have Saved for Retirement?

      Saving for retirement is tricky.

      Tell someone straight out of college to save $10k a year for retirement and it’ll be next to impossible.

      Make the same request to someone decades older and they’d be more likely to be able to save this amount. But, a 20-year old college student can be “financially ahead” of someone saving more than them. Why?

      Age matters in your financial journey. The younger you are, the more time you have to save and put compound interest to work. As you get older and have more saving power, you’d have less time to put compound interest to work.

      Here are the average savings Americans hold by age bracket:

      20’s – $16,000

      During this stage, most people are paying loans and moving up the corporate ladder. Your best bet during this stage is to focus on eliminating debt and increasing your income. Don’t focus only on getting a high-paying job neither.

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      Instead, focus on learning via Podcasts, reading books, and taking specialized courses. Doing this will make you more valuable and give you more career options.

      30’s – $45,000

      At this stage, you’ve hopefully escaped your entry-level salary and work at a career you enjoy. Your earning power has increased but you now have more obligations. For example, marriage, kids, and a mortgage.

      Set a plan to pay off all your debt and focus on eliminating unnecessary expenses. Leverage financial tools like Personal Capital to ensure you’re on track for retirement.

      40’s – $63,000

      This is the stage where you’re at the prime of your career. Top financial institutions recommend you have at least 2 to 4 times your salary saved up. If you’re falling behind, start maxing out your 401K and Roth IRA accounts.

      50’s – $115,000

      During your fifties, you’re close to retirement but still, have time to save. You may be helping your kids pay college tuition and other expenses. Since you’re at the peak of your earning power, max out all your retirement accounts.

      60’s – $172,000

      By this point, you should have about eight times your salary saved up. If not, you’ll depend primarily on social security benefits averaging $1400 per month. Max out all your retirement options as much as possible before retiring.

      Ways to Save Money on a Tight Budget

      The sad reality is that most Americans aren’t saving enough for retirement.

      Even high-earning power isn’t enough to secure one’s financial future. You need to have the discipline to save for retirement while time is in your favor. Don’t wait for you to have a high salary to save, start with having a small budget.

      First, get a clear picture of where you stand. Write down a list of “needs” and “wants.” For example, Netflix and Amazon Prime are “wants” and a “cell-phone” is a need.

      Use tools like Personal Capital to analyze your spending patterns. Personal Capital allows you to add all your financial data in one place–making it a powerful option to gauge where you stand.

      Once you know all your expenses, organize them from highest to lowest expense. When you can’t cut more expenses, call your service providers to negotiate a lower price. If you’re not good at negotiating, use services like Trimm to lower your monthly expenses.

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      How to Save Money Each Month

      By this point, you know the average amount of money you should have saved for retirement based on your age.

      But, breaking this down into monthly goals can be challenging. Here are some rule of thumbs to follow:

      Aim to contribute 10%–15% of your salary each paycheck. Review your progress each week.

      Why so often? The reality is that life gets in our way and you will have many financial setbacks. Your goal isn’t to be perfect but to get back on track instead.

      Reviewing your finances weekly lets you know where you stand with your retirement. This doesn’t have to be a long process either. All it takes is login in Personal Capital to view your net worth and check how much you have saved for retirement.

      Turn saving into a game and aim to save more each month. It will get challenging but you’ll get creative and find more ways to save.

      Top Money Saving Challenge Tips

      To prepare for your financial future and not be another statistic you need to be different.

      How?

      By adopting new habits that’ll help you become a saving machine. Here are some ways you can save more:

      Automatically Contribute Towards Retirement

      If you’re working for a company, you can automatically contribute towards your 401k. If you’re not currently contributing more than 10%, make this your goal. Contribute 1% more today and automatically increase this amount a year from now.

      Odds are that you’re not going to be negatively affected by contributing 1% more. Many times we spend our money on things we don’t need. Contributing more towards retirement is a great way to secure your financial future.

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      Use the Right Tools to Know Where You Stand

      Once you’re contributing more towards your retirement accounts, gauge your progress. Make use of finance tracking apps to help you view the big picture of your retirement.

      When I’d first signed up for the app Personal Capital, I didn’t know I had a negative net worth. Despite saving thousands of dollars, my debt brought my net worth to the negative. Knowing this motivated me to save more and spend less.

      Now, I have a positive net worth. But, it was because I was able to view the big picture using the app. Find out what your net worth is using a finance tracking app and you may surprise yourself.

      Bring in Experts to View Your Blind Spots

      If you have too little or too much money saved, you should consider hiring financial experts.

      Why?

      You may need someone to hold you accountable to help you reach your financial goals. Or, you may need help managing your money as effective as possible.

      Regardless of the reason, getting help may help improve your financial situation.

      Before you hire an expert, find out which areas you need help the most. For example, if you’re constantly overspending, find a debt counselor. If you’re struggling with choosing the best investment options, hire a financial advisor.

      Speed up Your Retirement Contribution

      After learning how to manage your money well, the next best thing is to earn a higher income.

      You’re capped at how much you can save but not much you can earn. Even if your employer isn’t giving you a promotion, you can still take charge of your financial future. How?

      By starting a side-business.

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      This will be something you’d work on after you’ve finished your day job. Once you start earning income from your side-business, you’ll be financially better off.

      The best part is the more work you put into your side-business,[1] the more potential it has to earn more money.

      So start a side-business in an area you’re familiar with. For example, if you enjoy writing, do freelance writing for small e-commerce businesses.

      Once you’re earning a higher income, you can contribute more towards your retirement. Don’t wait for the right opportunity to secure your financial future, create one.

      Reach Financial Freedom with Confidence

      What if you were able to retire tomorrow with no problem, all because you’d have enough money saved up and little to no debt left to pay off? How would you feel?

      My guess is that you’d feel happy and relieved.

      Most Americans are falling behind their retirement goals for many reasons. They’re not prepared, they carry bad money-habits and are thinking short-term.

      For you to retire successfully, you need to work backward and adopt better habits. Contribute more towards your 401K and focus on growing your income.

      If you do, you’ll save money and pay debt faster.

      Don’t beat yourself up if you’re behind your retirement goals. Take the first step today towards a brighter financial future. Isn’t retirement worth the hard work and sacrifice to be at peace?

      Featured photo credit: Huy Phan via unsplash.com

      Reference

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