By Cameron Huddleston
WWR Article Summary (tl;dr) According Michael Kay, author of “The Feel Rich Project”, the wealthy only seem to spend money on things that they care about. The rest of us can learn from this by setting our own goals and then monitoring our spending to see if it aligns with those goals.
It might seem like the rich know something about money that the rest of us don’t. After all, the richest 1 percent of people now hold almost half of the world’s wealth, according to the Credit Suisse Global Wealth Report.
Maybe the rich do have secrets to accumulating wealth, but that doesn’t mean what they know has to remain a mystery.
Use these strategies so you can build your own wealth, too.
SPENDING MUST ALIGN WITH GOALS
One of the keys to being rich is having goals, said Michael Kay, president of Financial Life Focus and author of “The Feel Rich Project.”
“They know what they care about,” he said. “Maybe it’s passing wealth to another generation, maybe it’s attaining a particular lifestyle. They are mindful of not wasting resources on things that have no value.”
According to Kay, the wealthy only seem to spend money on things that they care about. The rest of us can learn from this by setting our own goals and then monitoring our spending to see if it aligns with those goals.
“Are you really spending in accordance with what you value?” asked Kay. “Do the beliefs and realities jive?”
DON’T WASTE MONEY TO IMPRESS OTHERS
Most rich people don’t spend their time and money trying to impress others. “They are not in a race,” Kay said. “They know they have made it, so their attention is not on what others think.”
In fact, many wealthy individuals wouldn’t have become rich if they had spent their hard-earned money buying things to keep up with others, he said. Living below their means and rejecting big-spending lifestyles are key secrets of the country’s richest people, according to the best-selling book, “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy.”