Tag Archives: signs you will become rich

How The Rich Spend Their Money And Why You Should Start Doing It Too

Is it true that the rich spends differently than poor people?

The answer is Yes.

Today, I’m gonna share with you how the rich people spend their money and why you should do it too.

Poor People

Lets start with how poor people spends their money.

For poor people, when they receive their paycheque, lets say at $10,000 for demonstration purpose, they’ll immediately use the money to pay off their monthly bills.

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$5,000 into paying things which are necessary.

$4,000 into buying things they want.

$1,000 into savings (if lucky).

So whats wrong with this?

At the end of every month, poor people often ends with networth of about $1,000 if lucky.

This is what the line ‘Live paycheque to paycheque’ means.

Successful People

Successful people, on the other hand, when they receive their paycheque, spends differently.

Firstly, successful people have different philosophy when it comes to money management.

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They’ll put aside 30% for monthly commitments such as mortgages, car loans, etc.

And the remaining 70%, they’ll put aside for investment. Some successful people are even rumored to be able to invest up to 90% of their earned income.

0% will be put aside on things they want such as luxury goods or eating in restaurants

Once the money invested bears profits, they’ll use 10% from the dividends to buy luxury goods and so on.

In this way, their total networth remains between $6,000 – 7,000 plus dividends.

Now imagine they repeat this spending habit for years to come – this is the secret to true wealth.

My Two Cent

It’s clear, successful people spend with a long term plan in mind.

They continue to add more money into investment to be able to grow their net worth and also able to live off dividends alone

They know earned income is not permanent, therefore, don’t rely on it completely. In case of economic downturn, they’ll always have cash to rely; such as their other sources of income and savings.

On the other hand, the poor relies completely on their earned income. If they lose their jobs, they have nothing else to rely on.

Let me know what you think about the article in comment section below. I’d really like to know what you think about it

Keep grinding and hustling. Don’t forget to execute!

3 Signs That You Will Become Rich One Day

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Ever wondered if you’re going to be a millionaire some day? Well, here are top 3 signs you’ll know you’ll be rich one day.

1. You always shoot for the moon

You know how the saying goes, “Shoot for the moon. Even if you miss, you’ll land amongst the stars.”

If you’re the type of person to strive for an A when you only need a B to pass the class, you have the mindset of a millionaire.

On a mission to become rich, shoot for $10 million, not $1 million.

Take a look at the successful billionaires of world, for average human being, it might seem like these successful people are out of their minds to be thinking of something out of the norm.

While no one achieves a 100% rate of successful attempts at running business, all it takes is for a single business idea to strike big like Dallas owner Mark Cuban often advises “All it takes is to be right once.”

Continue to think big.

2. You maintain an open mind

You are not afraid of new ideas and know that closed minds do not inspire faith, courage, belief and active imagination.

Successful millionaires change their psychological approach to money, success, and happiness.

“The person with a ‘closed’ mind on any subject seldom gets ahead,” writes Hill.

On the flip side, the wealthiest, most successful people are constantly seeking feedback and looking for ways to improve.

That’s why so many business leaders, including billionaire Richard Branson, claim to have never “made it,” despite their wild success.

3. Invest whatever you can

Being rich is not a question of one’s ability or fortune or even a sense of entitlement.

The question of why one is not wealthy can in most cases be simply attributed to the fact that they are not being investors.

Most times we think a large sum of money is required to start investing.

On the contrary, there are actually a number of investments out there that give good dividends for small amount of money. It’s all a matter of searching these investments out there. This is where being open minded helps. Always be open to new investment ideas.

I made a mistake of not investing in Bitcoin back when it was in low $200/unit. I did invest in it, but it was in small amount because I wasn’t too keen on the idea. If I had maintained an open mind and did my research about the blockchain technology behind it, I would have poured more into investment.

In fact, how much you save and invest is oftentimes more important than than the size of your paycheck.

My Two Cent

Now, you know the signs of whether or not you’ll be rich one day, start adopting this mentality to be another step closer to become rich.

Remember, there is no shortcut and if anyone tells you that, is just looking to sell their product! Thank you for watching and I’ll see you again. Keep hustling!