Those who know how to manage money make it their slave.
Those who do not, become its slave.
In my research, I discovered specific money habits of the rich that they used to accumulate enormous wealth.
Put Money to Work
Accumulating money is good but it will not make you rich.
You must put money to work if you want to become wealthy.
And putting money to work means taking smart, calculated risks with that money.
The rich put their money to work by investing it in stocks, bonds, real estate, and businesses.
Borrow Money to Create Assets
There is good debt and there is bad debt.
Bad debt is a debt you use to sustain your lifestyle.
Good debt is a debt you use to build assets that generate cash flow down the road.
Saving 10% or more of your earnings/income allows you to accumulate money.
You want to accumulate money so that you can take advantage of investment opportunities that come along.
- Also read:10 BIG Benefits of setting up an SMSF or a Family SMSF
- Also read:How Many Billionaires Are There in Australia?
- Also read:What You Think About Most Is What You Get: Unleash Your Mind’s Power to Shape Your Reality
- Also read:Visualizing the World’s Growing Millionaire Population (2012-2022)
- Also read:Financial stability amidst the high cost of living
Track What You Spend
Do you know where your money goes?
Tracking what you spend empowers you.
It opens your eyes so you may know exactly where your money goes.
Tracking your spending allows you to make adjustments to how you spend your money.
If you don’t track your money it will disappear and once it’s gone you can’t get it back.
Avoid Spontaneous or Emotional Purchases
Never buy anything on impulse.
It is almost always the wrong thing to do.
That spontaneous or emotional purchase will lose its luster after only a few weeks.
Then you’re stuck with something you don’t need and that does not generate any income.
If you want to become rich you must become the master of your money.
If you don’t it will fly away and land in someone else’s pockets, never to return again.