Not everyone with millions in the bank spends recklessly and without care. In fact, the wealthiest millionaires I know clean their own home, buy their own generic groceries and refuse to buy things when they feel that the price is not right. They’re not dropping their cash just because they have it, and that’s probably a good reason as to why they are in the top 1%. They know that the number of zeros at the end of their bank account matter, and they’re happy to keep them there and get a good price for things. It’s a good habit, as are several other than some of the world’s wealthiest people have. If you’re looking to pick up some good habits, I can provide you a few examples of the world’s top 1% of millionaires consider their best financial habits – and no, I’m not in the world’s top 1% of millionaires. Here’s what you need to do to be more like the world’s richest men and women.
Keep your car
You might be surprised to learn that not every millionaire drives a Ferrari and an Escalade or owns a half dozen brand new cars. In fact, many drive cars that aren’t too elaborate – even if they are more expensive than most. Some celebrities choose to drive Suburban and minivans, others choose small cars that are fuel-efficient and a bit more environmentally friendly. This is what they prefer to do to keep costs down and make sure that they’re not over-spending on things that don’t matter. And what really matters is longevity – these are people that keep their cars for as long as they can. They’re not interested in buying a new one every few years.
Don’t buy brand new
While they’re driving their not-so-luxury cars around, they’re also not buying them brand new. No one with any monetary sense buys their cars brand new, either. It’s a terrible financial decision to buy brand new considering all the additional depreciation associated with buying brand new cars.
Even the world’s richest people prefer to shop sales than they do full-priced items. Of course, not all of them do this, but there is nothing wrong with that. I already mentioned that I have friends that own a very successful multi-million dollar business and they still prefer to buy things on sale at every possible opportunity. They feel that they work too hard for their money to throw it away on frivolous and expensive purchases. They’re right.
Buy the right home
Just because you have $10 million in the bank does not mean you have to spend it on a home. In fact, many wealthy people live in lovely homes that aren’t over-the-top or ridiculous. Sure, many of them live in homes that are large and lovely, but not everyone lives in homes that are just ridiculous in terms of size and functionality. They’re not all like that by any means.
Wealthy people do like to splurge, but the difference is that they do so wisely. Instead of splurging on expensive vehicles that won’t last forever and that they won’t even like in a year, they splurge on things that will make them feel richer; travel. Almost all of the wealthiest people in the world admit that they splurge most often on travel. After all, it is the only thing that money buys that makes you richer, and it’s well worth it to go over-the-top with this particular purchase.
Make good spending decisions
The best habit to take from the wealthy is that of good spending decisions. It’s up to you to figure out what a good purchase is for you. For example, do you spend money on a vacation home or a new business? Do you spend money on college educations for your kids or do you make them work their way through school the way that they might have had to do?
Don’t be cheap
No one should be cheap. There is a very fine line between cheap and frugal, and there is no reason to be cheap. Cheap is not cool. Cheap people do things that make no sense, like have millions in the bank and only eat ramen noodles (not that they aren’t absolutely delicious, but you get what I’m saying). Be frugal, but understand that sometimes you have to spend money to make a wiser financial decision.
The world’s wealthiest men and women understand that investing is important. It means spending money on things for your future. The difference between them and us, however, is that they do so wisely. They know what is worth investing in and what is not, and they make those decisions so that they can be as upfront with their purchases as possible.
Prioritize big purchases
You have money, so you can spend in on big purchases. The wealthy just happen to prioritize. For example, a vacation home might seem silly to some when they know they’re only visiting two or three times a year, but buying the land behind their home might be a great big purchase because it allows them to keep their privacy and expand their land. It’s also going to very likely mean that one day they will have a big return on their investment since properties of this are usually more valuable as time goes on.
When you have money to spend, don’t let yourself become so consumed with it that you don’t enjoy it. You work hard for it, and that entitles you to spend it and enjoy it as you see fit. Enjoy your life the way that you want to. Spend money on what makes you happy and don’t spend money on things that don’t make you happy. It’s a simple concept that’s going to make your life that much more productive and enjoyable, which is what makes it worthwhile. Go ahead and spend and enjoy, but also use good habits when you do.
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