10 Monthly Habits of the Super Wealthy

10 Monthly Habits of the Super Wealthy

 

If you ask any wealthy person, they can tell you what the long term plan is for their business, their investments, and their finances. Wealthy people focus on the big picture, and not just what they want/need right now.

You can’t get wealthy if you’re in debt. Wealthy people go into debt when necessary (modest home, education, etc.) but get out as soon as possible. They put all their extra income into erasing any outstanding debts in their name.

Once they’ve gotten out of debt, wealthy people invest in things. They don’t just let their money sit, but they put it to good use. They also invest in things they know well and trust. You won’t ever see a wealthy person invest in some shady “get rich quick” scheme, even if it is their uncle who’s doing it.

10 Monthly Habits of the Super Wealthy

Wealthy people know how to save, and lots suggest that it should be at least 10% every month. By saving, you not only build up your money, but you can prepare for emergencies and other unforeseen incidents.

Even if they’re given a raise, wealthy people live within their means. Don’t purchase items that are too expensive and put a strain on your finances.  This prevents debts from building up and money getting spent too fast.

Most wealthy people will look at their short term and long term financial goals every day, maybe even multiple times. By looking at goals, seeing if you’re on track, and keeping them in mind, it gets easier to achieve them.

A recent study showed that wealthy people actually watch less TV than the poor; they only watch about one hour of TV a day. This doesn’t mean watching TV is inherently bad or will make you poor, it’s just that wealthy people engage in more productive activities.

Along those same lines, wealthy people know how to spend their time well. With everything they do, they ask themselves, “how will this help me achieve my goals?” With this level of focus, they are able to make and keep money.

Wealthy people also know the value of patience. By waiting for good deals or until the price of something they want drops, wealthy people are able to get more bang for their buck, saving them money.

Wealthy people understand the importance of education. They usually have a high level of education and, if they don’t, they go out and get one. Wealthy people are proactive in learning as much as they can so they can make the smartest financial decisions possible.

5 Finance Discussions to Have with Your Teens

5 Finance Discussions to Have With Teens

 

Managing your finances right now may seem pretty easy and straightforward, but for a teenager who is just learning about money management, it’s likely to be a confusing world. So, when you talk to your teen about finances, don’t assume they already know how things work. Take time to explain credit cards, loans, how to write a check, interest rates, etc. Explain those things you understand and take for granted, and make sure your teen knows that asking you questions about those things isn’t stupid.

Make sure you teach your teen how to budget. There are tons of different ways to budget (and tons of different apps and programs you can use), so make sure you teen understands what budgeting is, and then let them decide how to do it. Explain the importance of spending less than you make and what are the important things they should pay for first.

5 Finance Discussions to Have With Teens

It’s always good to sit down with your teen and have an honest and frank discussion with them about what they’re currently spending their money on. While they probably aren’t making big bucks at their high school job, teaching them how to manage small finances will help them manage bigger ones in the future. So, ask them what they spend their money on—toys, entertainment, savings, presents, what? If you feel like they could use some guidance, then offer it. But always let them know what they’re doing well, too.

If your teen isn’t in the habit of putting aside some of their income for savings, then this is a vital conversation to have. Everyone should be putting some money away (some experts say at least 10%), and that habit starts when you’re young. It’s best to teach your teen the importance of saving and then let them decide how best to go about it.

Along with how to save, you should also talk about what to save for. Every teen is different: some want to go to college after high school, others want to travel, and even some want to go straight into a job. If your teen has expensive plans ahead (like college), then make sure they’re putting enough money off to the side to pay for that in the future.

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