Did you know that rich people wake up early, exercise, and read books? What about the fact that they don’t spend their money on unnecessary things? If you want to be wealthy and successful like them too, then try following these simple tips. 15 Simple Things That Rich People Do That You Can Too is a blog post with informational content for any woman who wants to be more like a rich person.
No matter what your bank account says, there are many things you can do to be more like the rich. You don’t have to be a millionaire or even a hundred thousandaire! There are plenty of little things you can do that will make your life easier and give it the feel of being richer.
Rich People Have A Budget
The word budget feels like a dirty word to many people. Why should I have one? Well, for starters it’s beneficial in more ways than you can fathom. For example, it allows you to see how much money is going towards things that may not be necessary. Furthermore, this will give the opportunity for assessment of your finances which help shape decisions on where and when to save or spend wisely. This allows you to plan things things things things things things things the best possible way.
And I previously mentioned, it gives you an opportunity to assess what is necessary and what isn’t. You also have control over your spending which can change your attitude towards money drastically. You will be accountable for things you have done as well. The same procedure should be used to analyze your debts.
You will know exactly how much and where are you spending money, so there won’t be any surprises that could potentially affect your emotions in a way that may alter your approach to money. Once you are aware of what is going on with your spending habits, coupled with an honest look at things in life, you should be able to see how feasible it will be for you to achieve the goals that you set out for yourself financially.
Rich people budget and stick to it – which is how they can afford the lifestyle they have. Just because you are wealthy doesn’t mean that money means more than your sanity. You really can live on a budget fabulously without sacrificing any luxuries or entertainment.
Invest Your Money
If you’re wondering what rich people buy, it’s investments. Investing money takes some effort but if done right, can pay off big time. They know money is the best form of wealth because with that type of cash flow; they can make more and grow their fortune even faster.
What rich people do with their money is to invest it for the long term. Invested money takes time to grow, and start when you are young so that by the end of your life, you will benefit from many years of compound interest which is where “the more dollars in every dollar” meaning as much return on investment as possible.
Investing can mean a million different things. It doesn’t just have to be about savings accounts or working with an investment advisor (although those are great options). In fact, the best thing you can do is educate yourself and learn what investing means for your own personal situation! Even if it starts out small—even $10 every month—investments will make all of the difference over time and it’s never too late to start.
Many Rich People Have More Than One Source Of Income
You don’t need to be rich in order to have multiple income streams. Many people are doing it by starting online businesses that they can run from home.
Also, investing in rental property, working a weekend job or any type of side hustle will benefit your long-term goals.
You could potentially be living the dream life if you have multiple streams of income coming in and this is for a good reason. It’s always nice to know that there are multiple sources keeping your funds going strong. It won’t take much time at all before one source exits or gets eliminated, then another starts up again!
Multiple stream income means that no matter what happens with any given method people will still see their money come through as long as they make sure to establish themselves well enough from day one.
They know the value of being frugal.
We all hear this expression ad nauseam, but it’s for good reason – by spending significantly less than you make money starts adding up fast. Saving becomes a habit and the mindset of buying only what is needed takes over! With all that extra cash accumulating every month, we find ourselves with quite a bit to spare in no time at all.
The wealthy buy things on sale and wait for things to be marked down further before buying them. They rarely use coupons, but they do look for deals and sales online and in stores.
They buy designer brands that are cheaper and last longer than non-designer products commoners buy. They know things that cost less now will pay off in the long run because they are more reliable, and things that cost more last year may not be so expensive this year.
They wear clothes they can wash at home and don’t need dry cleaning or special care. They also never leave things in the washer or dryer because that’s a waste of electricity. They hang things to air dry.
Frugal rich people became rich because they were so smart about saving their money not vice versa!
Rich People Stay Organized
They have a system to organize things and they use it consistently.
- Their house is always clean
- Things are always in their place
- Putting together an outfit for work in advance so when it’s time to get ready in the morning, all you need is one quick look in your closet before leaving
- Items they don’t need anymore are donated
- Mail goes directly to a file folder labeled with what they’re from
What Rich people Do For Fun
They do things for fun that don’t cost much money and give them a lot of joy. Ex: cooking, hiking, biking, and even volunteer work. They aren’t things that cost hundreds of dollars to do. And it doesn’t take a lot of skill to start doing things like these things either.
They spend time with things that make them happy like traveling and things that they enjoy such as hobbies. They don’t always need things they want- just for the sake of having things.
Rich People Don’t Have Debt
They buy things only when they can pay for them in full every month. That also means things like things on credit cards- things that cost money every month. They pay off things in full before the due date so they don’t pay interest and owe more than what things are worth.
Paying off your debt is the best way to get closer to becoming rich. And when I say rich, I mean having liquid funds – like cash! Imagine this scenario: you have a credit card and student loan that is costing you $500 each month. Then there’s also a car payment of about $250 every two weeks. These three expenses alone would be adding up to over $1200 per year- just on those three financial commitments. What if we paid all of them off? We could have over a thousand dollars in our pockets annually plus interest!
The wealthy are not bogged down by debt. They have a variety of liquid assets that give them the flexibility to spend when they need and want to.
Wealthy People Manage Money
If rich people have credit cards, they pay them off each and every month. Many believe in the cash lifestyle which help them reduce spending.
They have multiple bank accounts and use them all appropriately.
For example, bank accounts for things you have to pay every month.
A savings account that won’t be spent on things like bills.
An emergency fund can be used if something unexpected happens that requires money. And things that you want to save for like retirement or a car.
They also have an account for short-term savings in the near future that are planned including things like vacations.
They have emergency funds that they use for unexpected expenses.
Rich People Live Within Their Means
They don’t spend money on selfish things such as expensive cars, clothes, and big diamonds. They also don’t buy as a way to deal with boredom because they know there are better things to do with one’s time.
Live beneath your means. Just because you make more money doesn’t mean that it is okay to spend all of the newfound wealth on frivolous things- a bigger paycheck also carries with it greater debt and new demands for spending, but if one can live well below their financial limit, they’ll be able to save faster after receiving an increase in paychecks due to promotions or finding higher-paying work elsewhere.
So instead of buying that bigger house or fancy car, save your extra money and invest it for the future. Or put it towards retirement! You’ll thank yourself later when you have a lot more assets than before. If you really want to buy those things, make sure they’re realistic purchases for your budget first because if not, then don’t bother. But I wouldn’t recommend doing so at all costs either as there are unforeseen consequences in most cases.
The best way to prepare for the unexpected is not only by saving money but making smarter decisions with your budget. There are too many people living paycheck-to-paycheck despite their six-figure salaries because they’re never thinking about what could go wrong in advance.
Rich People Read – And Skip TV
A TV is often considered essential in many households, so you would think a very large and expensive television set should be on the list of luxurious items for rich people. Bigger is after all more expensive, right? But wrong!
The life of a wealthy person does not typically include owning or watching TV; it’s something they deem to be too time-consuming. And since their time tends to go towards being productive (ex: reading), then that leaves little room for frivolity like this.
Rich people never stop learning. I once heard about this week that Bill Gates takes a few times a year. He heads to a cabin someplace with a huge bag of books and just reads. Regardless of what you may think about Mr. Gates, this is a fantastic idea.
Reading and learning are two great things that will definitely work in your favor. Instead of being intimidated, go to the library near you and pick up some books on money management and maybe even some books on personal development (which is up next).
The Wealthy Focus on Personal Developement
Consistently working on your own personal growth can be beneficial to your personal finances. Learning to overcome mindsets and beliefs about yourself and the world around you can open up the possibilities of growing your net worth.
As this goes hand in hand with the above idea of reading more, learning new ways of expanding your thoughts and ideas through books will help you grow.
Knowledge is power. The more knowledge you have, the more powerful and influential you are in society so it only makes sense that the rich would want as much of this information for themselves, which they can use to make their fortune grow even larger.
The Rich Choose Their Friends Wisely
Surrounding yourself with like-minded people is a really great philosophy to live by. But surrounding yourself with people who are smarter than you and people you want to aspire to be more like, is even better.
People who surround themselves with people that don’t inspire them to be better will not grow as fast or have the same opportunities in life. When you were younger, your parents would tell you about how hanging out with certain crowds was wrong and they knew what they were talking about.
Rich people form circles of friends around those that are like-minded so everyone gets a push forward instead of just sitting stagnant at one point on their career path because there is no inspiration coming from within their own group.
Successful people are inherently drawn to one another, and the rich know this. They surround themselves with others who have accomplished more than they have in order to be better for it each day of their lives.
The Rich Are Generous
Studies have shown that the wealthy tend to give more to the charities of their choice. They are not greedy as many “poor” might think. They in fact, give more.
Studies show that rich folks aren’t stingy–they’re just more generous than everyone else with their hard-earned cash! A recent study from Harvard’s Opportunity Insights website has revealed some shocking statistics about how much a person makes is correlated to what charity he/she chooses; it turns out those richer folks really do hold back less when giving donations compared to poorer ones. This comes as great news considering our charitability rates are plummeting!
Opportunity Insights, which was founded by Harvard University Prof. Warren Buffettrich and Carol Graham of the Brookings Institution, has been researching economic mobility from 2009-2012.
The Wealthy Don’t Spoil Their Kids Materialistically
Some people believe that one of the worst things to encounter is a spoiled child who thinks they are entitled to everything. One might think that the wealthy children are the ones behaving this way from the tv shows and movies we watch. This is rarely the case.
I’ve been thinking a lot about the idea of spoiling children and giving them things that they really don’t need. I think it’s important for kids to learn that there are many other facets in this world besides just physical ones if we want our children to grow up as happy and fulfilled adults.
Showering children with gifts at Christmas isn’t a high need. Instead, consider following the 5 Gift Rule and teach them the enjoyment of family instead.
Rich People Set Goals
The rich have life goals. This means they know what to expect in their family and the targets that need to be accomplished within a certain time frame.
When we set our goal, it also creates the plan of how we will get there for this long-term target. Because we are setting those long-term goals, we work hard with determination. When future generations grow up, money is not an issue because everything has been achieved by them already Then people can live comfortable lives without having to worry about financial challenges.
I’m very goal-oriented and our family has set ourselves up for success during retirement. We have investments in mutual funds as well as an income property.
My husband plans on retiring next year and will find his second career doing something that he loves. While he does this, I will continue my small business until I don’t want to do it anymore.
Final Thoughts On 15 Simple Things That Rich People Do That You Can Too
The key to financial stability is simple. Set goals, don’t spoil your kids, have a budget, and be generous with what you do have. We all know it can feel really hard at times but the best thing that we can do for ourselves and our children is to keep practicing these things until they become second nature so we are able to live lives of true abundance in every sense of the word.
We’ve learned a lot about what rich people do that most of us don’t. These are all simple things you can start doing today to become financially stable and have the freedom to pursue your passions in life without worry. The time has come for you to take control of your finances and start practicing these habits so that you too can live like a wealthy person with financial stability, security, and opportunity at your fingertips! What habit will you work on first?