Rich People: Expectations vs Reality

How many of you dream to be rich? What does being rich mean to you? Do you imagine yourself with Gucci bags, with jewellery and with a grand-looking house? If you do, then you are mistaken. In fact, rich people are more frugal than you think! Before you continue reading, do follow me and subscribe to my newsletter. Without further ado, let’s hop right in!

Expectation #1: They Spend Money Like It’s Nothing

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Many of us imagine the rich to spend their money like it’s nothing. We imagine them to spend on all the jewellery, properties and physical items they can get their hands on.

Reality #1: Most of the Rich Are Extremely Frugal!

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Here’s the truth. The rich use their money carefully and do not spend it on unnecessary items. Now you might ask, “That’s crazy! They have loads of money, but they don’t do anything with it?” Don’t worry, you’re not alone. Society and its forms of entertainment have brainwashed us into thinking the wealthy live extravagantly. In fact, when we are told to imagine a rich man/woman, we imagine him/her in expensive clothing, with luxurious cars and a dozen villas. However, this is not the practice of the wealthy. The wealthy know that the money spent on these luxuries could be used to start other businesses, invest and save. This multiplies their wealth even more! Of course, the wealthy pamper themselves once in while, however, they understand that those who spend money recklessly are those who will lose their fortunes.

Expectation #2: They Are Wealthy Because of Luck

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The majority of us are led to believe that the wealthy either inherited their wealth or got lucky along the way. Many of us believe that the rich got their wealth from the lottery, gambling or being lucky in the stock market, while others believe that the only way to be rich is to inherit it from one’s parents or relatives.

Reality #2: They Are Wealthy Because They Work Hard

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Yes, it is true that one can be wealthy because of his/her inheritance or being lucky in the stock market. However, without working hard and using their money carefully, these people will end up losing their wealth and sliding back into poverty. The rich, however, are the ones that are hardworking and persevere. In fact, many who were poor have become rich after years of hard work! One good example is blogging. Many people dismiss blogging as a mere hobby which is unable to generate real and reliable profits. However, there are those who have made their fortune through blogging! But how did they achieve this? These six or seven figure bloggers didn’t just get lucky. In fact, these are the bloggers who endured years of failure and constant learning before achieving their goals! To these people, failure is nothing but an interlude between two successes. You see, you can earn your fortune from just about anything – as long as it does not go against the law and is moral – if you are willing to sacrifice and persist.

Expectation #3: Rich People Are Lazy

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It is common to imagine the rich as lazy people who spend every single day enjoying their luxuries and doing nothing else. Most of us believe the rich do not work and live worry-free lives. But is this wholly true?

Reality #3: The Rich Constantly Learn and Look For New Opportunities

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Those who are truly wealthy know that lazing around will only result in losing one’s fortune. In fact, the rich understand that change is the only constant and that they have to embrace it. Those who grow arrogant and lazy are those who will fall behind in the race. Knowing this, they learn constantly to keep themselves up to date and look for new opportunities to expand their fortune. Evidently, many of the rich keep a reading habit! (If you would like to learn more about the benefits of reading, do visit https://bestofwrite.com/2020/12/01/why-you-should-read/) As a result, the wealthy are able to protect their fortune even when the unexpected might strike, for they are able to adapt regardless of the circumstances. These are the people who see the bigger picture.

Conclusion

Attaining, protecting and growing your wealth is a game of strategy. A strategist understands that he/she cannot afford to be lazy or reckless, for he/she would risk losing all that he/she has built. Secondly, being wealthy is a possibility for us all, regardless of our current financial situation. We are all blessed with a mind and it is up to us to use it appropriately and wisely. Thirdly, Rome was not built in a day, was it? Nothing comes for free and everything takes time, so don’t worry if you don’t see results yet.

If you enjoyed this article, do consider giving it a like! Thanks for reading and stay tuned for my next post.

Why You Should Save

At some point in our lives, many of us have heard about the importance of saving. However, it’s surprising to see that many people fail to practice this. In fact, many people slide into poverty and debt due to the aforementioned reason. Worst still, many people make up excuses like “I don’t earn enough to save!” to explain their inability to do so. This mentality will only cause you to be financially trapped. So let us see why saving is so important. Before you continue reading, make sure you follow my page and subscribe to my newsletter.

Reason #1: Emergencies

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As humans, we can never predict what will happen in the future. We might lose our jobs, lose a loved one or lose money in the stock market. We might even be hit by a pandemic such as the current COVID-19. Saving ensures that you will always have a back-up in times like these, especially when you do not have enough money to repay your bills. The good news is that you have the ability to plan now and strategise.

Reason #2: It Will Grant You a Better Retirement

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As we grow older, our ability to work declines. Our health might begin to fail and you will naturally lose the ability to sustain your previous lifestyle. Saving early helps to reduce the financial burden you might face when you grow older and allows you to do the things you enjoy.

Reason #3: Financial Independence and Freedom

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As we grow older, we learn that we have to rely on ourselves to survive in this world. Nobody is going to fork out the money you need when you are in debt. You have to plan, strategise and manage your money yourself. To achieve financial security and independence, saving is a must as it allows you to prepare against unexpected events and emergencies. Fun fact, even chipmunks know that they have to store nuts to get through the winter. Let us not rely on others, especially our parents and friends, to take the fall for us when we end up in debt or end up bankrupt, since nobody owes us a living. Saving also allows you to make life decisions without overly worrying about your finances as you are prepared. You control your finances, not the other way around. This is what financial freedom means.

Reason #5: Take Advantage of Interest Rates and Compounding

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Albert Einstein once declared that compounding is the 8th wonder of the world. Saving over the years allows you to multiply your finances, albeit slowly at first. Let us take for an example that you deposited at total of $300,000 worth of savings in a bank with a 2% annual interest rate. In 30 years, you would have $543,408.48! That is almost double your principle! This is the beauty of saving early. Take for another example. You deposited a total of $1 million in a bank with a 2% annual interest rate. In 30 years, you would have $1,811,361.58 in your bank account! See what I mean now?

Conclusion

Also, did you notice that I started with the letter A for every paragraph? If you did, comment down below. Anyways, this is my 5th post on this blog and I look forward to blogging throughout this month of December and further on. If you are looking for a guide as to how you should develop the habit of saving, check out my article at https://bestofwrite.com/2020/11/30/how-to-build-a-habit-effectively/. Happy reading and remember to like and subscribe before you go.