Saving Secrets of the Wealthy

July 13, 2010

Many believe that people who have recently come into money (termed “nouveau riche”) are easily recognizable from “old money,” or people that have been wealthy for generations. Here is some advice about money saving strategies of the wealthy.

What makes these nouveau riche stand out is the level to which they spend and show off all their newly acquired items – from flashy sports cars to outlandish homes.

In comparison, many very wealthy families are far more inconspicuous. For many of these families, the focus is on purchasing quality that lasts a long time – not on the newest trendy car or fashion.

That long-standing belief in the behavior of the truly wealthy is reflected in the strategies they took to accumulate their wealth. Here are some strategies that the wealthy use that you can apply to yourself:

  • The wealthy pay themselves first as opposed to spending large sums of money directed to others. They have learned that independence and ultimate freedom comes from being able to utilize your own resources. Those resources came about from disciplined savings.

    We can learn from this by paying ourselves first as well. Before any bills are paid, set aside a sum that you can afford and designate that as your savings account. Do not spend it, but help it to accumulate so that when the time comes you’ll have the resources to make meaningful decisions that can grow your income and personal wealth.

  • Cheapskate is not a bad word. It’s often made into a joke that some of the wealthiest people in the world are the meanest. While being a mean cheapskate is something different and not worth emulating, looking for the best deals in the marketplace is something to respect.

    You’d be surprised to learn how many people who can afford it end up spending much less on items like cars, clothing, vacations, and so on – all because they are willing to ask for deals and unwilling to pay more for something than it is worth.

    Sometimes the people who can least afford items pay the most, because they want to be seen as affluent and they couldn’t be bothered to ask around for the best deals. Those people will likely never become actually wealthy.

    Here’s how you can adopt positive “cheapskate” traits and move your destiny closer to wealthier folks. Search your newspaper or the Internet for coupons offering discounts on your favorite products.

    Shop at bulk discount stores like Costco. When you purchase in bulk you realize significant savings — savings that can be reinvested in your own savings account so you can start to accumulate your fortune (it has to start somewhere!).

  • Reduce your expenses. Another way some of the wealthy stay that way is by spending far less than the rest of the population does on regular expenses. Some rarely drive and take full advantage of the services in their community.

    Is it necessary for you to drive to work every day? If you live in an urban center with reliable public transit you could save hundreds if not thousands of dollars a year by taking the public transit.

    Do you eat out several times a week? Is eating out regularly giving you lasting joy or taking your life into new and exciting directions? Likely not, so stop giving those hard-earned dollars to millionaire restaurant chains and direct that money to yourself.

  • By adopting some of the above you can get yourself on track to be wealthier.

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