10 Ways Wealthy People Think Differently About Money

Most people think that the wealthiest of the wealthy only focus on making more and more money, but the fact is that the smartest of the wealthy know that it isn't enough to only make more money -- you also have to minimize your expenses, as well as have a smart investment and savings plan.

Wealthy individuals see money a bit differently than most because they are exposed to all sorts of ways of making it and growing it -- ways that most aren't exposed to because they don't bother to do the research or because they believe that they couldn't be doing better and saving smarter than they already are.

This, I'm afraid, is rarely true. Most people could use and save their money a bit more wisely. Just learn from the smart and wealthy individuals who manage to do more with their money than even those who have much larger incomes:

They make sure to get out of debt first.

Debt is a pain in the ass because it increases over time. You think you may be $10,000 in debt, but if you calculate how much you will end up paying in total before you pay it all off, it'll be a whole lot more than just 10k -- depending on your interest rate.

Getting out of debt should be your first priority because every dollar that you use to pay off your debt, you're actually saving that dollar plus the change in your interest charges that would have accumulated had you not paid off your debt by that dollar.

In other words, paying off your debt first is the smartest thing to do because whatever your credit card statement says, in reality, you'll be paying a bunch more before you get rid of it all.

They figure out goals for their money.

Smart and wealthy individuals don't only have personal goals. They also have goals for their money. Having such goals in mind helps quite a bit because it gives you something tangible to visualize and seek.

Money can often seem trivial, as it appears on our bank accounts as a handful of digits. But when you can really picture what the money can and should do for you, it helps you save it and make sure it goes towards that which you actually want it to go towards.

Most people make enough money to get to where they want to be... they just spend it in the wrong places.

They know better than to be flashy.

The richest of the richest sometimes seem like the middlest of the middle class. How come? Because they love their money. They love their money so much that they don't want to spend it on useless things like a Lamborghini or a $10,000 purse.

Sure, sometimes they may splurge a bit and buy something flashy, but they see that as a treat -- not as a way of life. Flashy is synonymous with stupid.

They make sure to save for a rainy day.

Last minute, unforeseeable expenses do occur. Things get lost, they break and they get stolen. Bad things happen to all of us -- if it didn't then good luck wouldn't be possible either.

Having a bit of a financial cushion for your fall can mean the difference between getting by and getting kicked in the ass.

Set an amount to put aside every week and stick to it no matter what. You'll be thanking your lucky stars one day for being so smart.

They know exactly how much they are spending versus saving.

Money used to be simple. You used to make it, hide it under your mattress and then spend it wisely. You saw your money because it was in cash form. Then when banks came around, they removed your money from your view, making it slightly more difficult to keep track of.

Then, of course, we throw credit cards into the mix, as well as monthly recurring expenses, and things get mucky real quick.

You can, however, keep a tight tab on all the money that is going in and out -- and you should. But it will take discipline. It's worth the trouble.

They make their money really work for them.

Some people make money and then put it in the bank -- great. But have you seen interest rates these days? Depending on the type of bank account you have, they might not even be covering inflation.

Which means that you are actually losing money! The smarter investor will take on slightly higher risk in order to get a higher return. A diverse investment portfolio is really the best way to become (and stay) wealthy.

They diversify their income -- just in case.

Just as investments ought to be diversified, so should your income. Yes, investments are one form of income, as is your job.

If you're at this point in your life then you may not want to bother with getting another job to better diversify your position and increase the chances of avoiding financial problems down the road. For the rest of those still making their fortunes, getting an extra side-job could do you good.

It brings in extra income, but it also shields you from suffering if it happens that you quit your main job or get fired.

They aren't afraid to ask someone who knows better.

Being wealthy doesn't necessarily translate to being smart. However, staying wealthy does. Thankfully, we don't all need to be financial gurus in order to make sure that we are making and saving the most money that we can -- there are people who do that for a living.

Sure, they may cost you a pretty penny, but they'll give you back a shinier nickel... so, all-in-all, you win. If you don't know how to proceed, then ask someone who does.

They set limits on how much they are willing to spend on indulgences.

We all love to indulge -- especially when we can "afford" it. One thing that you may need to ponder over a bit is how exactly you define what you can and cannot afford.

Just because you can pay for it, doesn't mean that you can afford it. Indulgences are not necessities and therefore should be held to a minimum.

A life full of indulgences gets boring over time, so you'll be thankful of avoiding them for several reasons.

They continuously work to both make more and spend less.

There are two ways to increase your overall wealth: to either make more or spend less. The key is really to do both.

If you always work on making more and spending less, the spending value of each dollar increases -- as does the amount of dollars that you can spend. In a sense, you're left with an exponentially growing buying power.

Money is only worth what it can buy you... so buying power is all you should really be thinking about.

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