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10 Ways in Which Wealthy People Think Differently About Money

10 Ways in Which Wealthy People Think Differently About Money

Do you want to become rich? The first step is to know how the wealthy think about money differently than you do and to start thinking like that. The next step is to take action, and to let the action become natural by thinking the way wealthy people think.

1. The wealthy are okay with risk

“Millionaires are willing to take risks and have the emotional strength to handle failure if a business or idea fails.” – Millionaire Entrepreneur, Robert Smith

Everything you do won’t be successful. The wealthy know that and refuse to let the inevitable possibility of failure stop them from being successful. They go ahead and fail, get back up and keep going. Don’t let fear of failing stop you from taking action.

2. The wealthy think investing is fun

“If you don’t already have an investment account, open one. It’s one of the most luxurious things you can do for yourself.” – Self-Made Entrepreneur, Elle Kaplan

The wealthy enjoy the process of making money. They’re excited to invest money into something that will bring  them more money. In fact, that gets them more excited than a vacation, a new car or a diamond-studded cat food bowl. They still enjoy those things, but they do so after they have invested a set amount of their earnings. Pick a percentage of your earnings to invest and do it as faithfully and with as much excitement as you buy your double caramel macchiato.

3. The wealthy live below their means

The wealthy enjoy luxury and impulse purchases, but never at the expense of the larger financial picture. They live below their means. They know that living beyond their means puts a strain on their finances and moves them away from their financial goals. If you want more stuff, don’t go into debt or spent savings, think like the wealthy think about money so you can make more money and raise your means, so that living within it is more fun.

4. The wealthy pay attention

The wealthy pay attention to where their money is going, where it’s coming from and if it’s getting bigger or smaller. They watch it like you watch a toddler at the mall. They know what’s going on with it and if they veer off course, they make changes. Keep your eye on your money. Look at account balances, income and expenses regularly and become more aware of your daily habits.

5. The wealthy know that money grows on trees

Well, not literally, but the wealthy know they can always make more money. There is always more to be had and it is in infinite supply. Money is just a representation of value. When value is created, money moves around – more money, more value. Add value to people’s lives and you will get money. It’s that simple.

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6. The wealthy don’t chase money

The wealthy don’t do what they do for the money. They know that money is a great tool to help people, change the world, make more money and have a lot of fun in your limited time on earth. But they don’t see it as a goal in itself. They strive to achieve something bigger than money. Don’t make money your goal. Make your goal something more important and use money as a vehicle to get there and a reward for achieving it. 

7. The wealthy know money is not evil

Average people say they want more money, but deep down they believe it is an evil force that will make them do bad things. The wealthy know that money is just a tool that will amplify whatever you already are – good or evil. Think of money as a simple tool like a hammer. With a hammer, you can build someone a house or seriously injure them. The hammer isn’t good nor bad, it’s what you do with it. Quit believing the lie that money is the root of all evil.

8. The wealthy do what they are passionate about

“I had no idea that being my authentic self could make me as rich as I’ve become. If I had, I’d have done it a lot earlier.” – Oprah Winfrey

The wealthy know that the best way to make money is to follow your passions and pursue what genuinely interests you. Do what you care about. Getting rich is a lot of work and you better enjoy what you do to get there – in fact, you must enjoy it.

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9. The wealthy think long-term

“When you make your first million, be proud. Then put it away in sound investments so it can multiply and act like you don’t have it.” – Millionaire model and entrepreneur, Stephanie Adams

The wealthy know that they must plan for tomorrow. They know that the decisions they make today determines their financial future. They delay gratification and live below their means (remember number 3) in order to be even wealthier tomorrow. Every time you make a financial decision, consider how it will affect your wealth in the future.

10. The wealthy think big

The most important way in which the wealthy think about money differently is that they think big.

“If you’re going to be thinking anything, you might as well think big.” – Donald Trump

When you focus on just surviving through retirement or paying the mortgage, you will just survive through retirement or pay the mortgage. Your brain needs something big to dream about. You must aspire to be something huge. Stop dreaming of only a million bucks. Write down the biggest dream you can think of and multiply it by 10. That’s thinking big.

If you have read this far, you probably want to be wealthy. Every wealthy person was in the exact position you are in right now. First you have to believe it is possible. Then learn and deeply internalize these 10 ways the wealthy think differently and you’ll be on your way.

Featured photo credit: photo credit: Rodrigo Soldon via photopin via creativecommons.org

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Last Updated on June 26, 2020

25 Easy Tips on How to Save Money Fast

25 Easy Tips on How to Save Money Fast

“How to save money fast?” This is the question asked by all of us not in the top 1% of rich people.

If you are looking for ways to drastically reduce your expenses immediately, first look at what you need to spend money on every week. And I mean really need.

You don’t really need to order in food. You don’t really need to buy expensive perfume.

Building from that, you can work out how your regular expenses can be reduced.

As for irregular expenses, they can also be deceptively costly in the long run. Once-off buys can also be tackled with some prudent planning and a little extra research.

And remember: a budgeted lifestyle does not mean a bad or boring one!

But first, understand what budget you can cut down on daily:

  • Regular expenses for the average adult (can be trimmed but not eliminated):
    • food
    • rent/mortgage
    • cell phone
    • insurance
    • socializing/entertainment
    • transportation
    • hygiene products
    • household bills
  • Irregular expenses for the average adult (can be eliminated or cut down a lot):
    • travel
    • clothing
    • medication (*depends)
    • grooming (hair, nails etc.)
    • gifts

Now, let’s dive right into the 25 ways to save money fast:

Save Money on Food

1. Bring a stock of food to the office/work

Instead of popping out for an overpriced salad and a smoothie, leave a set of basic utensils at the office as well as a stock of non-perishable goods such as tinned fruit, tuna, rice crackers and so on (try to avoid the junk food and this can turn into a pretty great diet!).

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Stocking up means you won’t forget or say “I didn’t have the time” when you rushed out to work in the morning.

2. Buy the store-brand version

Many basic foods, such as bread and milk, will taste exactly the same as their branded alternatives. Go for stuff with minimal additives and preservatives. Meat in a tube is probably insanely unhealthy!

3. Eat cheaper cuts of meat

Learn how to tenderize and flavour cheaper meat and fish, and save on the (typically) most expensive item on your grocery bill.

4. Have group dinners

If 10 friends put $5 each in the kitty, it’s pretty easy to make a giant lasagne and get refreshments, as well as hang out with your favourite people.

Save Money in Transport

5. Get a bicycle

Save on gas money and bus/metro fares with this underrated mode of transport.

6. Use public transport and/or don’t get taxis

Some places can only be reached by car. But as a good practise, check your public transport website and see if any routes pass nearby where you need to get to. Walk as much as you can.

7. Find the cheapest gas

Regularly check out where the cheapest gas can be bought.

Save Money in General Shopping

8. Shop online

Not only will you save on the gas or transport fares from going to the shopping mall but you will also find better deals

9. Sell your old stuff

Get your unwanted belongings up on eBay ASAP and earn a few dollars.

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Here’re more ideas for you: 25 Things to Sell to Make a Lot of Money

10. Bulk buying stores

For regular non-perishable/slow perishable purchases such as toilet paper, cat food, pasta, washing powder and so on, do an epic stocking-up trip to a co-op or equivalent (my mum used to go to a place that restaurants buy from).

Be wary of supermarket “deals”, as some have been found to be fraudulent after working out a simple calculation.

11. Become a flea market/car boot sale/street market guru

You can find original gifts and develop good negotiation skills at these places.

12. Generic brand medication

More often than not, the generic version of paracetamol and other basics work the same as the branded version.

13. Choose deodorant, not perfume

It blows my mind when someone drops $70 on a bottle of spray. Stick with a nice deodorant, and not only will you smell just fine but you’ll be sweat-free as well!

Cut Down on Household Expenses

14. Printing

Ink is one of the most expensive substances in the office and coloured ink is doubly so. B

e more efficient and choose black and white, and if your printer doesn’t have a print-both-sides options, just print odd pages first, re-insert the paper and print even pages.

Expand the margins of what you are printing as often as you can to save on paper.

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15. Minimize SMS and phone calls

A combination of a free chat service such as WhatsApp and a free call service such as Skype can reduce your bill to nothing (so long as you have a decent Wifi connection).

16. Shop around for insurance

Most people don’t spend enough time searching for the best insurance deal.

Keep a watchful eye out for deals and new competitors in the market.

17. Try re-negotiating your rent/mortgage

If you have built up a good credit history or a good rapport with your landlord, then chances are a frank chat about needing to tighten your spending could result in lowering your payments. You’ve nothing to lose from trying.

18. Don’t get a TV

Invest in a computer/laptop and an internet-only package. You can watch more (and often better) entertainment on the web, and skip the advertisements as well.

19. Pool your internet bill with a neighbour

My apartment building is basically a big old house split into three apartments. There are five of us in total. We pool the internet bill, making it crazy cheap.

Save Money in Socializing, Entertainment And Travel

20. Have house parties

Instead of paying for overpriced drinks, set up a series of in-house get-togethers with your friends. Everyone takes a turn, so it’s not always your house that needs cleaning.

For sound insulation, hang heavy drapes on the walls and windows. For music, invest in a good second-hand set of speakers which you can connect to your computer. Let Spotify or Grooveshark playlists do the rest.

21. Open festivals, meetups and events

It never fails to surprise me how much underground stuff goes on around me for free or for very cheap. Find out who runs the blogs and websites that list all the less well-known cultural activities.

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22. Volunteer

If you can’t pay for a ticket, volunteer and get to be there anyway.

23. Housesit

There are multiple housesitting websites offering you the possibility to avoid paying hotels and skip the discomfort of crummy hostels.

Save Money on Hygiene and Beauty

24. DIY beauty

French manicures, pedicures, waxing, eyebrows… pretty much all of these can be achieved at home (and done well) with some practise. There are plenty excellent blogs and YouTube tutorials to help.

25. Fewer haircuts/volunteer at a trainee hairdresser

If you can’t bear the risk of a trainee touching your locks, learn more ways to manipulate your hair as it grows and get haircuts sparingly. Women’s haircuts are outrageously priced in many cities.

Bonus: Effective Money-Saving Tips for Everything

Here’s a summary of what you can generally do to save more money:

  • Share/pool resources. Organize a neighbourhood sharing scheme, common resources for your apartment block or with your friends. Not everybody needs an individual lawnmower.
  • Buy energy-saving everything. The easiest way to lower your bills – replace those lightbulbs!
  • Buy in bulk. Be sensible about it (i.e. make sure you have space!), and drastically reduce weekly expenditure.
  • DIY. Skill up using YouTube tutorials on plumbing and many other essential services so you never have to pay for simple problems again.
  • Research a lot before making a decision. Most money-wasting is the result of poor preparation and planning. Don’t shirk this part just because you don’t like it!
  • Use your network. Your network is full of resources that can ease the pain of budgeting. Ask for help.
  • Stop and think. Do I really need it?

Unfortunately, there are some things that require plain ol’ giving up for the time being. This can include high-cost sports such as skiing, the latest versions of some technologies, the finest brands of food/drinks, premier seats at the opera and most other indulgences.

What is important to remember during lean times is that when you look back on your life, it will be the experiences that stand out, not the extra comforts.

Living on a budget can teach you a lot about how much you can really get out of your paycheck. We only live one life, so make the most of every penny you earn!

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Featured photo credit: Unsplash via unsplash.com

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