This is due to how they are managing money and their mindset towards money. I got the inspiration to write this blog from Ken Honda’s Japanese Book (Solutions to Money Issues).
Wealthy people spend money on things that generate money. If you want to become wealthy then you have to increase your money IQ that is “spend your money wisely”.
Often, the reason people can’t save money is that they make poor choices when they spend their money. In fact, I would even say that learning how to spend your money is often a more difficult task than learning how to earn your money.
Let me introduce a secret wealth people follows:
Wealthy people spend money on “Things that make them Wealthy.”
Poor people spend money on “Things that make them feel Wealthy.”
Contrary to popular belief, truly wealthy people don’t own a ton of brand-name products and expensive vehicles (although they do own some).
The reason is simple: Branded products and expensive vehicles don’t generate money for them. In other words, it would be a typical “consumption” to spend money on branded products and expensive vehicles, because the money spent on them will just disappear.
Some people say, “Wearing branded clothes makes me feel good, and it has a positive impact on my work.” But if you really think about it, such a purchase is sure to make you poorer by taking the money out of your wallet.
In other words, you spent the money to get the “feeling of wealth.”
Truly wealthy people spend money in an entirely different manner. When they purchase a product, they will find a craftsman that they truly like, and ask the craftsman to make something that sparks joy in them.
Such a craftsman may not be famous. But if the craftsman is highly skilled, he can produce a high-quality product (at the level equal to brand-name products) for half the price or less.
To elaborate further, instead of consuming luxury, wealthy people purchase good stocks and good pieces of real estate. They spend money on things that generate money.
In other words, wealthy people spend money on “investments” rather than consumption.
Of course, Wealthy people invest money in themselves, too. If acquiring knowledge helps them generate more money, they don’t hesitate to invest money in themselves.
People often say that wealthy people make detailed calculations to make sure that they don’t waste even a rupee. Such a stereotype creates an image of wealthy people as just stingy people.
But that’s not who they really are. Wealthy people think about whether the money that they spend (even if it’s just a dollar) will come back to them with “friends.”
Wealthy people spend money in a way that brings life to money.
Happy Reading!!!
CFP CM ViralKumar Shah (Financial Happiness & Wellness Coach)