5 Ways Rich People Save Money
You may think people who have a lot of money don't have to worry about saving. Wrong!
We can all learn a lot from the very wealthy--and how they stay that way. Bankrate.com has revealed five money-saving secrets of the rich and frugal.
1. The wealthy control what they spend.
Chances are, you save and invest money so you'll accumulate wealth. That's not what the rich do. They concentrate on holding onto their wealth--not by stuffing cash under the mattress, but rather by controlling what they spend. "You can't control interest rates and the stock market, but you can control a lot of the discretionary part of your lifestyle," Susan Bradley, CFP professional and founder of the Sudden Money Institute in Palm Beach Gardens, Florida, told Bankrate.com.
2. The wealthy don't buy on impulse.
Expensive purchases--from TVs to cars--are made only after much thought and research so they get the highest quality at the lowest possible price.
3. The wealthy love bargains.
Even the rich get a kick out of saving a buck. Wealthy people often worry they are overpaying, so it's common for them to use coupons and seek out sales.
4. The wealthy buy quality products.
Well made, high-quality products are just better and last longer. The wealthy look for the very best, especially when they are purchasing big-ticket items. For example, buying the highest quality furniture means it can be passed down from generation to generation, a great way to preserve wealth. "For the important things in life, buy quality; take good care of it, so you buy it once," Bradley told Bankrate.com.
5. The wealthy don't like debt.
"Debt" is a four-letter word. Avoiding debt is key to gaining wealth and keeping it. The rich pay their credit card bills in full every month and always live below their means.
--From the Editors at Netscape