What does wealth mean to you? Have you ever looked at the very wealthy people of your generation and wonder how they got their wealth and most importantly how they maintain this wealth? Well, you are not alone in your wonder. I too have looked closely at some very wealthy individuals I look up to and I finally realised that they sustain wealth through their Money Habits.
Money habits of very wealthy individuals.
The rich and wealthy are as human as you and me, the only difference between us is the fact that they have some key money habits that help them build and sustain wealth. Curious to know some of these key money habits? Here are some:
1. They live on a Budget: say what! Yes, these really wealthy people you see and look up to, live their lives on a strict budget. Imagine having all that money and not being able to spend as you like?
Having all that money is one of the reasons they live on a budget, to avoid callous spending. Wealthy individuals make conscious efforts to live below their means, they don’t just think “oh I have the money” and spend it however they please, this is how they sustain wealth. They take a lot into consideration when they have to make huge financial decisions to avoid making financial decisions they will regret.
2. They have built money discipline: money discipline is very important to the wealthy. It takes discipline to actually spend on a budget when you have hordes of money. Most wealthy entrepreneurs and owners of companies ensure that they put themselves on a salary (like any other employee) and do not spend directly from the company bank. To build and sustain wealth you need to have high levels of discipline that these wealthy individuals have.
3. They choose to live a simple life: more often than not, very wealthy individuals live a very simple life. You can see it in the way they dress and live life. Recently, I saw a picture online of Bill Gates out in a very simple attire and he definitely didn’t look like his “billions” . Mark Zuckerberg is always seen in tee shirts and jeans looking very simple, out and about buying groceries with his wife or attending meetings alike. It seems funny but they ensure they live a very grounded life and make sure to cut out bad habits that can lead to systematic loss of wealth and bankruptcy.
4. They turn their desires into businesses: everyone has that thing they will buy in excess if they were Ophra. Very wealthy people have these desires also. The only the difference between us and them is they find a way to monetize their obsessive desires by turning them into business ventures. For example buying, reselling/leasing your exotic cars instead of buying them and keeping them in your garage to gather dust, see the business opportunity there? Or buying awesome homes and renting them out to holiday makers instead of paying house sitters and stewards to keep the house in to notch shape.
5. They save and track their spendings: yes even the wealthy save and track their finances too. Saving is a money habit that helps build wealth over a period of time. Never underestimate the power saving and tracking your spending has on your personal finances. They do this to ensure they are not going over their set budget.
6. They are the kings of investment: investment is an important money habit of the wealthy. This is how a lot of them recreate wealth. Making huge investments in assets, stocks, real estate, bonds that yield returns and help sustain wealth in the long run is a trick they have up their sleeves. They do not only invest but they invest smart by diversifying their investments across industries. No very wealthy individual invests in only stock or only real estate. They understand that the economy changes and the money market changes. So they diversify their investment to help secure and sustain their investment returns and their wealth in the long run.
7. They set financial goals and never give up: the wealthy set financial goals for their personal finances and businesses. They set these goals and go after them until they achieve them. Most times when we make bad financial decisions, like invest wrongly and loose money we tend to give up on investment all together. Very wealthy individuals never give up, that is how they got to the point they are at right now. They don’t see a bad decision as reason to fall back and never invest again. They bounce back and reinvest in something else they feel will yield returns.
8. They choose their association wisely: have you always wondered why wealthy individuals hang out with other wealthy individuals? It’s because they are very careful when choosing who they associate with, so they will rather associate with people that understand their financial goals and how they choose to live their lives irrespective of what is in their bank accounts. Our association always reflect on our life choices this is why association is very important in wealth building.
The wealthy take life easy, they know what’s important and where to channel their energy to. No wonder they can build and sustain wealth for lifetimes. Having the right money habits help us all in our financial lives and for us to achieve, build and sustain wealth we have to start thinking and acting like the very wealthy do.
All that said I ask again what does wealth mean to you?
Have a lovely week ahead. Love D.A