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15 Surprising Ways Rich People Think Differently

15 Surprising Ways Rich People Think Differently
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Rich people don’t think like average people. That’s the world we live in.

Being able to maintain a massive wealth over a long period of time is not something easy if you don’t have the right mentality. How would you explain that a large number of lottery winners who go broke after a few years?

They don’t have the rich people mentality.

When you look at the way rich people think, you will notice some intriguing similarities.

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They think about themselves first.

Before giving large sums of money to charities, they make sure they help themselves first. They did not get rich and stay rich by helping everybody carelessly. When they do something, they know what’s in it for them. It’s not selfishness, it’s staying rich.

They are constantly thinking about the future.

The future is only the present waiting to happen. Wealthy people know that if they want to keep their lifestyle, they have to think about the long-term. Globalization, financial crisis, and world conflicts are opportunities or threats for the rich individual. Not seizing long-term opportunities and ignoring potential threats is a recipe for becoming average.

They are action-oriented.

They don’t just relax and wait for interest to come in. In an ever-changing world, rich people think about the future, but have the means to act now. Good investors know how to make a quick decision to seize a fleeting opportunity.

They are passionate.

Their passions can vary, but rich people have the money and the time to fulfill their passions. If they don’t like to do something, they can always find somebody else to do it for them and then spend more time hunting deers if that’s what they like.

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They prefer specific knowledge over formal education.

Since they are action-oriented, they prefer an education that serves a concrete goal. Education is important, but becoming excellent in a specific area is more important. Rich people become extremely rich by being excellent at doing something or at doing something nobody has dared to do. College drop-outs following their start-up dreams to become billionaires are a long-lasting cliché, but the truth is that developing specific expertise early on will give them an edge.

They are outrageously ambitious.

And they need to be. If they were not, they would settle with “richer than average.” Very rich people will never be satisfied with the amount of wealth they have. They have an internal compass that directs towards “more money,” which means bigger projects.

They are not afraid to invest.

Rich people have been presented with countless get-rich-quick scams, and they know what it takes to be where there are: effort, time, or money. Since they got to a point where the biggest leverage they have is money, and that’s what they have more of than the others, they know they will have to invest to earn. You win some, you lose some.

They know how to leverage other people’s money.

Even if they have a lot of money, they know how to use other people’s money to get what they want. Bank loans, strategic partnerships… a global vision will allow them to find other people’s money to make their investment worthwhile.

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They surround themselves with like-minded people.

Having the lifestyle of rich people is very peculiar… they don’t share the same interests as other people, and there are not many people with whom you can share your concerns about having to pay millions in income taxes. They will flock together in similar gatherings and enjoy being together anywhere in the world.

They choose the best employees.

They know that their success lies upon the people that work for them. Rich people know what they want, have very little time for administrative stuff, and rely enormously on their employees. Since there is a lot at stake, they will choose the best and pay accordingly.

They can size anybody up in an instant.

Rich people are always solicited by average people, who always come to ask them for something. After a while, it becomes easy for them to evaluate people. It’s a matter of practice!

They have a very accurate detector.

They will ask few questions, but they will learn a lot from you. Since they have a global vision, they will challenge your proposals with their experience or outside-the-box comparisons. They will see if you are faking expertise, even if they don’t know your field.

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They don’t care about what you think of them.

They don’t have anything to prove any more. They won’t feel the need to show off their money or to show some kind of status. They will be very subtle in showing that they belong to a higher social class.

They think of the world as a small place.

The super wealthy are not stuck in a specific country. They are buying the best places around the world and consider the world as being a small place. Being in three different countries in one day is not surprising for them, and they will get a feel of where the world’s pulse is.

They raise their children to be rich.

Their children will handle a huge fortune as well. It is quite a sad prospect to think that your children will dilapidate the money you or your parents made with hard work. They will try to teach them the value of money so that they learn to take nothing for granted.

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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