Money Habits of the Filthy Rich

Through extensive reading and research, primarily driven by my personal quest to optimize my investments, I’ve gleaned insights into the qualities, routines, and mindset that enable affluent individuals to preserve and expand their wealth.

Wealth accumulation is a gradual journey, demanding perseverance, unwavering resolve, sound financial strategies, and a strong work ethic.

While it’s not a universal narrative, many of these individuals embarked on their financial journey from humble beginnings. In some cases it took a lot of time, resilience, determination and good old fashioned grit. To stay that way, they employ these five simple techniques:

1. Avoiding Lifestyle Inflation – Keeping Spending in Check:

Imagine your income goes up. What do you do? Many of us start spending more on fancier stuff as our paychecks grow. It’s natural, but it can be a trap. Wealthy folks are smart about this. They don’t rush to buy flashy cars or expensive gadgets. Instead, they focus on staying sensible. They might get used cars and pay for them with cash. They also make sure they have good health insurance and an emergency savings fund. This fund is like a safety cushion filled with cash that can cover your bills for 3-6 months if something bad happens, like losing your job. By being careful with their spending, they safeguard their money and build a secure future.

2. Prioritizing Debt Elimination – Tackling Debts Quickly:

Debt is like a heavy backpack. Millionaires don’t like carrying it around. They tackle their debts swiftly, especially high-interest ones. They don’t let credit card balances pile up. Instead, they pay off their credit cards completely every month. This way, they avoid giving away their money as interest payments. Instead, they use that money to invest in themselves and secure their financial future. Debt isn’t a burden for them; it’s a challenge they conquer early on, setting the stage for financial success.

BOOK - Happy Sexy Millionaire by Steven Bartlett

3. Regular Financial Check-Ups – Staying Money-Smart:

Imagine you have a budget, like a spending plan. Millionaires follow this closely. They know exactly where their money goes. This helps them make smart choices, like prioritizing important expenses and skipping unnecessary ones. They don’t just set it and forget it; they regularly review their financial health. It’s like checking their bank accounts to see how they’re doing. If they notice any dips in their overall financial situation, they figure out why and fix it. They stay focused on their goals by keeping an eye on their income and spending habits.

4. Wealth Preservation Over Aggressive Growth – Protecting What You Have:

Instead of chasing big, risky opportunities to make their money grow super fast, millionaires are careful. They prefer safe investments that give them steady, dependable returns. It’s like they want to keep their money safe in a vault rather than rolling the dice. They prioritize protecting what they have rather than trying to make it grow super quickly. This approach helps them avoid major financial disasters and maintain their wealth steadily.

5. Learning from Mistakes and Moving Forward – Bouncing Back from Slip-Ups:

Everyone messes up with money at some point. Even millionaires. But here’s the thing: they don’t let their mistakes define them. They know that making a mistake doesn’t mean they can’t get richer. They learn from their errors and keep going. Millionaires live by the idea of “fail fast and move forward.” They don’t dwell on their blunders; they use them as lessons to become even better with money. This way, they stay resilient and keep making progress on their financial journey.

I must admit I am no expert in this field, yet it’s all very interesting information about the lifestyle I currently have. Whilst I have superannuation package waiting for me to cash-out in 10 years time, I want to live better now.