When it comes to the lives and lifestyles of the filthy rich in the world, you would be surprised at just some of the things that they actually do and don’t do with their money. First, it is necessary to note that there is a difference between the rich and the filthy rich in our society. Say that the billionaires are the filthy rich in this case.
However, there are many money management tricks you can borrow both from the rich and the filthy rich. But even so, you will find that most of these guys have some pretty interesting and common characteristics and traits. Of course being the ordinary person you might wonder how you can manage your few hundreds of dollars with tips from somebody managing millions of dollars. What most people fail to understand is that managing credit and finances is very simple. The same tips used by the filthy rich you can use them to manage your tribal installment loans.
This article will attempt to uncover some of them in detail. Keep reading.
Here are the thrifty habits that you will only find among the filthy rich.
They save and invest first, then spend later
Warren Buffet once said that the moment you start buying things that you don’t really need, then very soon you will have to start selling some of the things that you really need. Which is true with many filthy rich folks. You will find that most of these guys save and/or invest first, about 20% of their total earnings. And only then do they spend whatever remains. Ensure that your income can still be able to somehow generate you more money before you start spending.
Spend less on clothes, food, and shoes
If you haven’t noticed this yet, know now. The smart affluent rich folks don’t always go berserk on brands and designers or accessories. They will, however, scramble for the things that will ensure they keep their wealth secure and future.
Instead of spending large sums of money on depreciative items like cars and clothes, invest in assets which guarantee the growth of your wealth. You can set aside some cash for clothes, food, and vacations still.
Live below their means
The filthy rich don’t splurge if you’ve never noticed. You will find that most of them live quite modest or humble lives, in a way. Warren Buffet and Carlos Slim are good examples here. The two have lived in the same modest homes for decades.
Use coupons, discounts, and anyway they can cut costs
These guys have good spending habits. You don’t get to be super-rich by dishing out or buying out everything at its initial price. Most of these guys are penny-pinchers; they use discounts, coupons, and sales to save more money whenever they can.
Don’t carry a lot of cash on them
You will also notice that most of these guys usually only walk around with credit cards which they also use wisely. And if they do carry cash, then it would be for only what they want to buy. Credit cards help you keep track of your expenses and also offer greater security from theft.
Value quality over cost
Most people would consider this to be an inversely frugal habit. But when you look at it from a more financial aspect, you would actually save up some good money from this. The filthy rich don’t just go for stuff simply because they are cheap. But they will look at quality more. And quality products are sure to last a lot longer. They then don’t need to spend anything else on repairs or maintenance.
Give lesser percentage to charity
When you hear that some filthy rich folk has donated millions to a charity organization, think twice. He/she may have dished out those millions, but when you calculate it to their total overall wealth, it’s pretty low. The rich will secure their future first by investing and saving before donating their money.