It is no news that the
rich keeps getting richer while the poor mostly always stay poor. This can be
linked to the type of lifestyle and mindset these different categories of
people have come to get adapted to over the years. Till you can change the way
you reason and break the bounds of your lifestyle that limits you totally, it
might be close to impossible to upgrade to the wealthy category. The ability
to make the right financial decision is a major pathway to staying wealthy.
Here are some simple approaches common among the rich but which are mostly
missing in the poor.
IMPULSIVE
DECISIONS: wealthy people hardly ever make financial
decisions on impulse. Its easier for poor people to make impulsive decisions
involving finances even when they don’t need the things they try to acquire
with the money they cannot afford. Millionaires take the time to figure out
what is really important and what they need before investing in them
financially.
DIFFERENCES
BETWEEN WANTS AND NEEDS: wealthy people know the
difference between wants and needs. They know the importance of reinvesting and
making some money even much more money.
LONG
TERM FOCUS: Rich and wealthy people have stayed wealthy
because they are able to have long term goals and they know the importance of
investing for a long period of time before they start to see manifestation.
Most poor people are short sighted and can only have short term ideas which are
likely to give short time income.
MUTIPLE
INCOME SOURCE: most wealthy people have multiple
income sources. They know the importance of continuous income generation and
the benefits attached to them. Poor people get comfortable with a main source
of income that can fold up anytime.
AUTOMATE
INVESTMENT: wealthy people understand the benefits of automate
investments. Wealthy people are acquainted with how to invest regularly and
continuously. They know how and when to take advantage of opportunities and they
are well equipped with the right investment strategies.
BUDGETTING:
wealthy people know how to stay wealthy by following a budget and having
restrictions in their spending. They know how to make a scale of preference
even when they can afford everything they want.
PROPER
UNDERSTANDING OF WHERE THEY INVEST: billionaires are risk takers and they have
the insight to see opportunities where ordinary people would not and it is
unlikely for them to invest in a field or business or line of trade they are
not familiar with. They have a proper understanding of where to invest and how
lucrative it can become in the long run.
LIVE
BELOW THEIR STATUS: most wealthy people live humble lives
and far below their means. They mostly invest in necessity and not luxury
items. They don’t show off how much they earn with their status. They rather
reinvest and get richer and make people wonder how they earn their wealth.