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Am I the only person that’s fascinated by the daily habits of the rich and successful?! (Of course not!) What wealthy people do with their money is something I’m constantly researching and reading about. I’m interested to learn the spending habits of millionaires, what they spend their money on and what they don’t.
If you have read Rich Dad, Poor Dad, you know the difference between the rich and the poor is our spending habits. The rich buy assets while the poor (and middle class) buy liabilities they believe to be assets.
A wealthy woman and a poor woman have two very different relationships with money. Before you can become rich, you need to change your mindset about money.
Your mindset towards money needs to change, you need to view money as abundant. A lot of us (without realizing it) have a scarcity mindset. We believe there is only so much we can achieve or earn, not realizing there really are no limits in income and opportunity.
This list of habits of the wealthy won’t do anything for you if you continue having the same relationship with money. Change your attitude towards money first and then try and change your habits.
These money habits include..
They Save More Than They Make
Wealthy women aren’t trying to keep up with the Joneses. They have a savings account and they know any dollar they save today has more value over time. A wealthy woman knows that money looks better in the bank than on their feet. Yes, they can indulge in things they love, but they are more conscious of where their money goes and how they spend it. Their mentality towards money is different, they save money so they can make more money. They don’t save for the sake of saving or to buy a new dress.
Live Below Their Means
It doesn’t matter if you make $30,000 or $300,000,000 a year, you need to live within your means. When you make more money, automatically you start spending more. You upgrade from that Honda to a Mercedes, and when you out-earn your Mercedes you want a Ferrari. There is always something above your paygrade, no matter how rich you become. However, you need to calculate how much you make and then spend accordingly.
Wealthy women don’t want it all. When you have more money than you can spend, you know objects and belongings aren’t a source of happiness. In fact, it’s highly likely that you know a couple of millionaires but don’t realize it. Wealthy women don’t necessarily own 18 bedroom homes and 4 cars. You probably think they’re broke or make a ‘decent living’.
And it’s also likely that someone you think is incredibly rich, is actually not as rich as they seem. That rich person in a range rover and mansion might have a negative net value (net value = everything a person owns, minus all debt).
Appearances don’t mean much to a wealthy woman. They live within their means and value time over anything else, knowing it’s the one thing they can’t buy more of. Which brings me to my next point…
They Spend Money To Maximize Time
The one luxury no one can buy. There are many ways you can maximize your time.
I have saved hours off my beauty routine by simply adopting shoulder length hair. I have to spend more money on hair cuts to maintain the look (when it was down to my waist, I could go months without worrying about it) but now I have an extra 30 minutes in the mornings that I don’t have to fret with it. After washing it just looks ‘done’ versus having to brush and iron before to look presentable.
Other ways wealthy woman save time might be with laser hair removal, eliminating hours a year of time spent shaving.
In my business, if there is something I don’t like to do or is too tedious, I outsource it. I value my 3-hours more than the $30-some dollars I spent on data entry assistant. If you’re a business owner, you know there are tasks in you jobs you probably aren’t too crazy about, how much would it cost you to pay someone to do it?
And more importantly, what other income increasing activity (that you enjoy!) can you do with the extra time?!
Another huge time-sucker is grocery shopping. After trying Amazon Fresh, I do 90% of my groceries online. Groceries always took me at least 3 hours on a Sunday. There were certain things I needed from different stores and I was unhappy with how I wasn’t enjoying my Sundays at brunch, with friends, or simply reading a book at home.
Doing the grand bulk of my groceries online has saved me literally days (3 hours a week = 156 hours a year = 6.5 days spent grocery shopping per year).
They Indulge in Frugal Travel
Do you have a mental image of millionaires spending their vacations on a private island with a yacht? Although that might be the case for one or two, the grand majority of wealthy woman travel frugally. Michelle Schroeder-Gardner, who makes over $50,000 a month alone selling her online course, travels the U.S. in an R.V.
A lot of wealthy women spend their money on slow travel – meaning they choose quality over quantity. Slow travel can mean something different from person to person, but in general, it can be best identified as staying in an Airbnb (not a hotel) and living like a local for a week (or months!) as you experience the city as the people would.
Touristy travel is going to New York, staying in a hotel and seeing Times Square and the Statue of Liberty. Slow travel is renting an Airbnb in Soho (South Manhattan) and getting some work done in a coffee shop, getting a week pass at a gym, going to a local bar, and doing what you would go back home. Experiencing the type of lifestyle that the city provides.
You get a much better idea of a culture when you slow travel and a different perspective on the world in general.
They Prioritize Their Health
All wealthy women aren’t thin, vegans who spend all day in the gym. Of course, wealth comes in all shapes in sizes, but wealthy women know the importance of working out, not for aesthetic purposes alone, but to prevent diseases in the future.
They spend a little extra on a more reputable brand and might opt for the organic brands. Health (like time) can’t be bought, but at least we have more control over it.
Wealthy women value their health above all else. In addition to exercising, they watch what they eat, sleep seven or more hours every night, and avoid drinking too much alcohol and watching too much TV.
Working out boosts your memory, concentration, and mental agility which allows you to enjoy your life more and (most likely) earn more money.
Overall, wealthy women don’t spend (or approach) money how many think they do.
The media portrays the lives of a select few elite women who do spend their income on flashy cars, the latest clothes, and luxury hotels but the majority of wealthy women aren’t on t.v. They’re probably your neighbor or go to your church, and you don’t realize how rich they truly are. A large number of people with enormous wealth don’t like to draw attention to themselves (for obvious reasons) and keep a low profile.
A good friend of mine, who makes a seven-figure income, drives an Accord and lives in a modest three bedroom home in the suburbs. Wealthy women value their money, but they value their time and privacy more.