A large part of the difference between the rich and the poor lies in the mindset of financial management. It is not enough to put your mind on how to make money alone, but more importantly, to have the financial mindset of a rich person. It is known that there will be at least a 20% difference in wealth between someone who has been doing their best to manage their money since they were 20, and someone who doesn't think about it, by the time they are 30! So today I'm going to share with you three financial habits that the rich are using.
1. Organisational assets
The same money, at different points in time, has a different value in itself. For example, the price of a house ten years ago is vastly different from the price of a house today. The same money, placed in different places, will change over time. Put the asset in the right place and then a ten dollar bill today is worth more than a ten dollar bill tomorrow. If you put your money in the bank, based on interest rates, it seems like you are getting interest, but in reality, the money is depreciating in value. If you want to make your money more valuable, you need to organise your assets and let it 'grow'.
2. Allocate consumption wisely
With the rise of online shopping and live-streaming with goods, shopping has become very convenient and therefore the desire to spend has greatly increased. Faced with the dazzling array of consumer vouchers and shopping festivals, we need to allocate our spending wisely and spend our money where it is due. Save money while meeting your growing material and cultural needs. Spending is divided into, consumer spending and discretionary spending. We can create a spending plan based on our income before the start of each month, focusing on managing the free spending section, setting a spending budget, allocating spending wisely and avoiding unnecessary impulse purchases.
3. Build good credit and pay off your card debt as soon as possible
One of the secrets to wealth for many successful people is to use the money in the bank as leverage and principal to invest in higher value business ventures, and good credit is the key to being able to successfully spend money and benefit from such ventures. Conversely, card debt is like a snowball that, if not stopped early, can develop into a financial burden that can seriously affect quality of life and credibility.
Knowing the above three we also need to learn to constantly improve ourselves, use the time we are able to learn and spend some of our money on investing in ourselves. It is important to keep improving when you have not reached a certain accumulation of wealth, and that you yourself are the investment that has the most appreciation value and can create the greatest return. To have a wealthy mind like a rich person is not something that can be achieved overnight. Usually, you should pay more attention to finance, seek advice from the financial experts around you, change your bad spending habits and keep on growing.
