In an ideal world, there doesn’t have to be a distinction between the rich and the poor. While those who do not have tend to criticise those who do, there are actually some real-life lessons to be learned from those who do have.
The reasons that the rich have what they have are not all due to negative things, such as corruption, greed, or backstabbing. We would do well to be aware of the differences the rich and the not-so-rich have in terms of how they each deal with money.
And it would benefit us the most to learn from them.
1. The rich invest in education.
Whether in school or through volunteer activities, the rich spend money on acquiring more skills or deepening the ones they already have. They don’t just think of profiting from these learnings in terms of money either.
Real-life opportunities where they learn certain skills where they aren’t paid are not discounted. In fact, if these experiences will help them get better connections or will give them an advantage over their competitors, they take it.
For example, if an aspiring filmmaker wants to make it big in his/her industry, he or she would take an internship at a top broadcasting company in order to learn from the directors.
2. The not-so-rich don’t think long-term.
The rich really do tend to save money for a rainy day, whereas those who don’t, think not only of the short or middle-term; they think immediate term. They reason that since they have so little, there isn’t enough to put away anyway.
It would do them, and us as well, to think long-term no matter how seemingly small we have. The point is that we are not only planning ahead, but we are also whittling down our seeming needs to a minimum.
This leads us to the third money habit.
3. The rich live below their means.
It’s easy to jump to the conclusion that the rich live below their means because they can afford to do so. They have more to live under in the first place. For rich people, they did not get to their financial status by not doing so from the very beginning though.
Living below their means is actually a lifestyle, a habit, a practice. It’s not an overnight thing or just something that they do when they feel like it. It’s part of their makeup, their personality.
4. The not-so-rich accumulate things.
Related to the first habit, those less fortunate tend to collect possessions instead of investments. The trends that will give them social status but not financial stability are more important to them.
We need to keep thinking about money and time as two very important assets to manage. In doing so, we can focus on our money goals instead of the latest smartphone or pair of shoes.
5. The rich find different sources of funds.
In other words, they diversify their income. Whether by investing in more than one type of financial instrument or engaging in a small business, they don’t close their doors to opportunities.
They also study such opportunities to make sure they are making sound decisions about whether to take them on or not. Along with risk assessment, they check if the opportunity is according to their financial goals and when they can expect a return.
They are very informed about the decisions that they make in order to stay consistent with their long-term goals. They align their short and middle-term goals with their big financial vision.
Check out the various insurance instruments in our website to familiarise yourself with one of the many ways to diversify your funds.
Start taking on the positive habits of the rich to address your financial goals. Make sure you start with what is important to you and plan accordingly.