People that know how to manage money well do not need the flashy and high-end objects.
Everyone wants or dreams of being wealthy at some point in their life. The idea of having beautiful clothes, car or a penthouse and become productive requires decision making by building good habits. An interesting observation is that the wealthiest people do not spend their money the way we would. Let us take a look at the attitudes of the rich to help manage money well by learning from the richest.
Microsoft founder Bill Gates, ($103.5 billion net worth, (2019)). Gates has always had the classic, pointed, button-down collar shirts in colors like purple. He has often seen in sweaters, and admittedly, they are not eye-catching.
By wearing the same clothes, the wealthy avoid decision fatigue, a phenomenon where everyone has a limited amount of brain power which gets consumed with the decisions we make.
Simplicity makes a difference. People with money realize the importance of what their hard-earned dollar is worth. They are not afraid of actively unplugging themselves from merchandising.
Comparing their attitude to the people in debt and broke and that live their lives paycheck to paycheck might drive their fancy-looking cars and show off their success through being materialistic.
The secret of living a classy lifestyle is to live on less than what you need to. Here is why successful people wear the same thing everyday.
They plan their future carefully and realize the importance of savings.
The people that plan their finances weather it is through investing, savings, and planning for an emergency fund. The rich invest their money in hiring a financial planner to grow their net worth.
They are value investors and strategically plan their finances in such a way that they shy away from mundane things that bring no difference to their lives.
Growth matters to them. The give immense value to the knowledge of accountants, money managers, and financial planners, etc. to help them grow their investment and potentially their income as well.
They work towards becoming productive and know how to work best with what they have.
The people that manage their finances well often have a new and fresh financial start to their day, Above all they do not boast on how much their net worth is but instead accept challenges that will take them in the right direction.
Money management like everything else requires discipline and discipline, is an acquired taste that successful people attain through their financial outlook.
Their attitude towards savings of having “Something better than nothing” helps them grow and become financially savvy over time.
Life is all about numbers, and no amount is too big or small.
Benjamin Franklin once said, “A small leak will sink a great ship.” The people that are money smart will securitize their monthly spending habits and always search for alternative to find a deal that is well worth their money.
For example, if there is a subscription or a service that they have never used – they would promptly cancel them, which in turn would save them hundreds at the end of the year.
Because tracking numbers are equally important for the money smarties. They continuously monitor the money habits relating to earnings and spending is every month. They utilize technology and money management apps for bookkeeping to help manage the transactions in their bank account.
The graphs and data generated by technology and software help them further analyze their monthly spending’s. This allows them to plan purchases related to big ticketed items that they dream.
Attention to detail lies in the Fine Print
You will be surprised, but attention to detail is a secret weapon of the rich.
Attention to detail is required especially with the jargon in the Fine Print of any contract or financial document.
This is essential as it highlights any financial fees that you should be aware of prior to signing the contract.
Managing your financial life is not that hard, above all your attitude often makes a difference.
The techniques and skills required to attain financial freedom is simply a function of your attitude towards your hard-earned money.
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