A lot of people tend to look at successful, wealthy folks with a slight air of disdain. They see the relative ease of a wealthy individual's life and tend to believe that this person may have fallen into wealth or was simply hired for the right job, at the right time. In most cases though, successful people have achieved their wealth and status in life through determination and focus. Most successful people do not amass impressive finances through luck, but rather through restraint and favorable decision making. If you want to know how they do it, read on to learn about four personal-finance secrets most successful, wealthy people know.
Preserve Wealth
First and foremost, successful people tend to act with restraint. Regardless of how you believe an individual became wealthy and successful in the first place, it almost certainly was not the result of reckless spending and creative investing just because they had the money to play around with. Successful people built their wealth by making smart decisions with their money in the first place and preserved it by continuing to spend with restraint.
Inc.com notes two secrets of successful, wealthy people that fall into this group. First, you should be living below your means. This does not just mean when you feel like doing so or over the next year. If you want to get rich and stay rich, spend less than you make and do so for the long haul. Spend with restraint, invest wisely, and learn to become a prudent saver. Additionally, be a smart steward of your money rather than a creative investor. Stick to the investments and financial planning that got you here rather than taking chances simply because you have the financial means to do so.
Pay off Credit Cards
If you are a fan of your credit card(s), make sure you are paying them off each month. Avoid the sky-high interest rates on credit cards, which will ensure that you are spending only what you need to and not wasting money on interest payments that do little more than line someone else's pockets with your money. In fact, if you really want to know a personal-finance secret successful people follow, you should consider avoiding credit cards entirely. Mark Cuban, billionaire CEO and "Shark Tank" star suggests cutting up your credit cards and living on cash instead. This way you only spend what you can get your hands on at any given time.
Support Your Community
When you do opt to spend some of your wealth, make sure you are using it to support worthy causes in your community. Investing in your local community and the people within it ensures that when you do spend your money you get the joy of seeing it paid forward in a manner that impacts those you live around.
Be Boring and Seek Out Professionals
Finally, be boring. There is no need to become someone different and splash your cash around just because you have accumulated wealth. Be boring with your money and seek out the assistance of financial professionals to ensure the money you have worked hard to gain in the present does not dry up in the future. Manhattan Ridge can create and implement a plan that enables you to invest on your terms.
The views expressed are not necessarily the opinion of Social Advisors, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.