We are often deceived by media when it comes to what it really looks like when you are rich. Most people think it is about having a huge mansion, an expensive car, designer clothes etc. And if you follow that image, that becoming rich will only remain an impossible dream for you.
However, most rich people actually live ordinary lives. The only thing that separates them from people who are trying too hard to become rich is that they live by certain money-saving rules. Here are those 12 rules that rich people follow.
1. The 24-hour rule
Before making a non-essential purchase rich people wait 24 hours to reconsider it thoroughly.
2. An all-cash diet
Credit cards trick you into thinking you have money so it is easy to get into debt. Rich people avoid debts as much as possible and they prefer to pay with cash.
3. Set a budget and stick to it
There is a rule rich people follow which is called ‘50/30/20’. The 50% refers to the income you spend for necessities, the 30% for the income you spend on wants and the 20% for the income you save or use for paying off debt.
4. Spend on things that help you earn
Rich people are aware that even though they should save money they can also buy things. But the difference from other people is that they only spend money wisely to buy things that are a long term investment such as a reliable car or a good lap top.
5. Invest in services that save you time
Rich people value their time the most so they would never hesitate to spend money on services that can save them mental distress and their precious time.
6. Experiences are valuable
Even though they can afford plenty of things, rich people value experiences a lot more than material things. Instead of spending money on shiny things they would rather take personal trips, have life-changing treks, try skydiving etc.
7. Bills first, rest later!
Rich people tend to pay fixed expenses as soon as possible because that way they have a clear view of the money they have left for other less important things.
8. Make a shopping list for annual sales
You don’t have to be rich to buy on sales, but rich people tend to avoid spending more money on things that will get discounted eventually. They also make shopping plans and schedule their big purchases.
9. Invest in things that make you happy and healthy
Rich people don’t buy things unless they add meaning to their lives. They will not think twice before spending money on something they are passionate about, but only if they can really afford it.
10. Start “no spending” days or weekends
This rule is very simple. You should set your limit and avoid spending money on certain days or weekends unless there is an unavoidable emergency.
11. Save your change and use it
Loose change should never be underestimated; it is still money. Save your change and use it to buy a coffee or snack.
12. Repair things before getting rid of them
Even though rich people love investing in themselves, they also commit to the things they have purchased. Instead of immediately throwing away something that is broken, they first try to fix it and they will buy a new one only if it can’t be repaired.