Tags: wealthy people | smart financial decisions | investing | savings

9 Things Rich People Never Waste Their Money On

9 Things Rich People Never Waste Their Money On
(AP)

By    |   Friday, 06 December 2019 11:22 AM

It's a rich man's world but how do you get wealthy in the first place? Making smart financial decisions is a good start.

The good news is that it is something that can be applied to all levels of your life. From the major decisions like investing and saving to the smaller decisions, like how you spend your cash, it all adds up. Not convinced? Hear it straight from the rich themselves, who shared with Reader's Digest how they cut costs in daily life. Based on the report here are nine things rich people never waste their money on:

1. Impulse buys. It is hard to resist the sudden urge to spend money on a pair of designer jeans, home theater system or even a new car but you will probably not get rich making these impulse buys. Billionaire investor Warren Buffet explained that if you buy things you do not need you will likely end up having to sell things you need.

2. TV channels and video games. Research found that middle and lower-class households spent considerably more time watching TV or playing video games than wealthier households. What this shows is that, firstly, the rich do not splurge on the latest TV games and TV packages, and secondly, they use their time to be more constructive.

3. Luxury brands. You would think that millionaires only wore designer brands but surprisingly, this is not the case. Many rich people see it as a waste of money to buy high-end apparel.

4. Buying overpriced homes. The trick to becoming rich is to live below your means, which means buying a house you can afford, not one that is drastically over-priced. It also means doing as the rich do and seeking out deals and not letting yourself be ripped off when buying property.

5. Buying instead of renting. Many people believe that buying rather than renting is a good move. Why make someone else rich when you can use that money to own your own house? The rich have a different idea. "Renting is more popular than ever, even among the wealthy," Extra’s Mansions and Millionaires host Michael Corbett said. "While it once made sense for people who could afford it to buy a home and flip it after two years, and the market has improved moderately this year, we’re hardly in a boom."

6. Expensive grooming. We all like to look good and many of us are willing to pay the price, but not the rich and famous. Many do not believe it is worth overspending on hair styling, facials and self-care products.

7. Multiple credit cards. Wealth is not accumulated through credit, which is why you will rarely see a millionaire using more than one credit card. When it comes to saving, every little bit counts and that includes the extra finance fees that accumulate. It is also less tempting to make unnecessary purchases.

8. Late fees. The changes you make now will impact your financial status in years to come. Making sure that you do not skip a payment or miss a bill means you will not be charged late fees, which means you are saving more money.

9. Gambling. Gambling addiction is detrimental to your financial wellbeing but what about the odd trip to the casino? There is nothing wrong with that but if you are hoping to grow your wealth then this is something you may want to sit out, just like the rich do. It is easy to overspend when you are playing the slots and chances are by the end of the evening you would have blown your money.

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It's a rich man's world but how do you get wealthy in the first place? Making smart financial decisions is a good start.
wealthy people, smart financial decisions, investing, savings
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2019-22-06
Friday, 06 December 2019 11:22 AM
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