The impression is that rich people can buy anything they want, whenever they please. Although this might be true, most of them do not. Just because one is rich, does not mean that he or she is frantically spending money like no tomorrow. In a number of cases, those who have built significant wealth are quite conscious about their expenses. In this article, we shall be discussing what mistakes smart and rich people avoid.
Impulse purchases
A commercially astute individual who enjoys wealth would avoid impulse purchases. It is very enticing to buy something on a whim or an impulse, however that is precisely the sort of behaviour that rich people avoid when they have the experience of becoming wealthy. According to one of the world’s richest people, Warren Buffet, those who buy things they do not need, will eventually sell the ones they do.
Unproductive hobbies
Wealthy individuals did not build their empire by sitting around all day. If you spend a lot of hours in front of a television screen, you are less likely to become rich anytime soon. This is precisely why they do not spend a lot of money on expensive TV packages or video games. Research shows that those households with lower incomes tend to consume more media such as TV, video games and radio.
Brands
Those who are rich can afford several fashion items from high-end brands. This does not mean that they are doing so. Investing your hard-earned money on accessories yields no return, and you will notice that well-known wealthy individuals do not wear such apparel. In an interview, Bill Gates stated that he wears a ten dollar watch when in reality he could afford a large number of high-end watches.
Expensive grooming
Whilst taking care of yourself is necessary to maintain a neat appearance, most wealthy people do not break the bank to look good. One example is the fact that a number of businesses that exceed millions in net worth cut their hair at home.
Gadgets
The wealthy would tend to value experiences over the latest gadgets. Research highlights that experiences make up for a more fulfilling life, rather than the latest gadgets which grow out of fashion following a couple of months.
Gambling
Most rich people definitely do not require lottery winnings to change their life and would typically be against wasting their money on gambling.
These are just some mistakes that may hinder you from growing your wealth. Any others to share with us? Let us know your views in the comments section below.
