How Do Rich People Save Wisely?

People often think that once you become rich, you wouldn’t need to save money anymore. That is just an absolute lie. Rich people wouldn’t stay rich if they don’t know the secrets of saving money. The term saving money doesn’t just refer to actually keeping money from being spent, it could also mean to spend the money wisely instead of wasting it and also making it grow without losing too much. A rich person can run out of money, especially if that person doesn’t know how to handle it right. That is why we have gathered some secrets of the rich and successful people when it comes to saving money and using it wisely.

[su_quote cite=”Henry Ford” class=”cust-pagination”] “We teach children to save their money, as an attempt to counteract thoughtless and selfish expenditure, that has value. But it is not positive, it does not lead to the child into safe and useful avenues of self-expression or self-expenditure because to teach a child to incest and use is better than to teach them to save.” [/su_quote]

Rich people don’t waste money to impress others

This generation revolves around the social media. Almost everyone post about literally everything, unfortunately, this pushes people, especially the millenials, to actually use this show off and make a good impression. A good example is that when a girl post about her having a new set of lipstick, people who follows her on that social media platform would see it and some of them would want to get their hands on that new set of lipstick as well. Real rich people, don’t brag. However, people try so hard to actually fit in and be in with the trend to buy something that they can’t even afford, sometimes, they don’t care if they get into debt, just as long as they could take a photo of it and show it to the world. Rich people know the difference between what they need and what they want, and they don’t always waste money on

Rich people invest wisely

Rich people know exactly where to and where not to invest, they know where their money comes from and they make sure to know where it exactly it goes. Investing on something that you absolutely know nothing about, especially if you don’t know if it is going to get you more money is just bad. Because if you are unsure and have no idea about it, you are just wasting money. Rich people always make sure that they the outcome will favor them, and that is called smart business. There is absolutely nothing wrong with risks, but learn from your mistakes if ever you have any, it is always best to save that money for a better investment.

Rich people have a millionaire’s formula

Most people think that rich people splurge all the time, well, maybe often, but not all the time. That is because rich people know that they wouldn’t benefit anything from splurging, because they wouldn’t make money out of it. Rich people have what they call a millionaire’s formula, which is basically when they receive their income, they would give a percentage of it to give back to the community, a percentage of it to their investments, save some of it, and spend what’s left. That way, even if they splurge, they wouldn’t end up being broke.

Rich people can live simply

Last but not the least, is that rich people don’t often show off. Celebrities and socialites of course do everything to look fabulous, but then again, that’s what makes them rich.

However, people, like Steve Jobs, Mark Zuckerburg, and Bill Gates, they are far more rich than those celebrities and socialites, and yet you wouldn’t see them flashing every single luxury item they’ve got. Zuckerburg always wear a simple shirt and jeans, that just mean that there is absolutely no reason to flaunt it. They wouldn’t gain money from it, they would even save some money from it since they don’t need to show off.

[su_quote cite=”Louisa May Alcott” class=”cust-pagination”]“Money is a needful and precious thing, and when well-used, a noble thing, but I never want you to think it is the first or only prize to strive for. I’d rather see you poor men’s wives, if you were happy, beloved, contented, than queens on thrones, without self-respect and peace.” [/su_quote]

There is absolutely nothing wrong with splurging, but what is wrong is that if you splurge all the time. Keep in mind that knowing how to save money the right way could actually help you out for the long run, you can even give tips to your family and friends. The ability to save is a gift indeed, because that is a skill that not everyone has, it is a skill that can be learned, but not everyone is humble enough to do it, they’d rather be broke.