How To Save Cash Like The Rich
Like them or hate them, the rich and wealthy know how to make money and sustain the growth. The top 1%, for the most part, either finance gurus or have finance guru’s looking out for them, the question is, who is looking out for you?
Here is how to save that ‘mulla’ like our rich counterparts.
#1. Keep it in the safe
As much as they have their homes in major cities, they also save most of their money. In offshore accounts, of course, but still saving. The ones in the topmost 1% save almost half of their salary while the 9% behind them save 12% of their earnings. It is a general rule that you should save 10%-15% in order to maintain a retirement lifestyle.
#2. Live frugally
Here is a fun fact: A lot of millionaires roll around in second-hand cars and actually spend money wisely. These millionaires must not be newly-signed athletes. Just kidding!
Warren Buffet himself lives in the same house he bought more than five decades ago! If that’s not awesome then I do not know what is. Even George Clooney lived in the same house he bought during his days on ‘ER’ for over twenty years.
#3. Get that portfolio diversified!
Even though many CEOs own stocks in their very own self-built companies, a lot of the wealthy keep that portfolio diversified. Possessing a diversified portfolio will protect you from the unpredictability of the markets so in the case where one of your stocks falls, the others are there to keep you afloat.
#3. Be a serial entrepreneur
Your current job should not be your only source of income as that is not safe. Let’s briefly analyze a few wealthy individuals, liked or hated.
Kim Kardashian West
From her reality show to the uh… very interesting video, to her fashion line that she co-owns with her sisters, commercials, endorsements the list goes on, she has multiple areas of investment. So if one fails, she has a lot more to fall back on.
Whether you are a fan of her infamous pics of her fashion line, she does know how to make money.
Jay Park
This American rapper based in South Korea is not just a musician, but also the CEO of AOMG which stands for Above Ordinary Music Group. He is also signed to SidusHQ. He has two separate incomes, which does not including his gig as a judge on Show Me The Money and all the various endorsements. Let’s not forget that he got some stocks!
Oprah Winfrey
Of course Oprah Winfrey, the mother of TV shows. She sets the bar high for everyone after her to reach. From owning her OWN Network to her magazines, to the occasional features in films and animation, Oprah is never short of money. Can you just imagine what her portfolio looks like?!
#4. Hold on to ‘EM!
No matter how dreary the markets might seem, do not buy out because of fear. Take a deep breath, relax, take a warm bath then watch that stock like a hawk.
Okay. It’s true. The markets can be temperamental and this can make certain individuals so uneasy that they buy out at the wrong time, out of fear. The super wealthy ones, however, are cool and collected when the markets begin to dip or even, crash.
#5. Save on impulse
As soon as you get your money, divide your income accordingly, and put the money in savings on time. Do not procrastinate! This is the one thing that the rich do so you should too.
#6. Timing
Time is the most important factor when it comes to growing a significant retirement portfolio. The rich know that they need to start saving as soon as possible to build wealth.
Timing is so important; start a portfolio very early and your retirement funds. Do not wait till you are 65 years old to begin saving for retirement. You will regret it.
#7. Do not live in debt
Since the rich live frugally, they also pay off their debt. That means buying cars in cash, paying off a mortgage early and not carrying credit card debt. In general, they don’t make a habit of relying on credit for personal expenses.
Borrowing money is something we all cannot run away from. At some point in time, you will have to do it, even if it is at the cafe and your without your wallet or your purse. Just make sure, you do not live in debt.
The bottom line
The aforementioned tips are a lot easier to go through with when your bank account is ‘well-fed’. Storing over 40% of your income is not very sensible if you are living pay check to pay check. So start small and be wise with your income(s).
