What is being Rich?
If I were to ask you how you define what being “rich” was you would most likely think of someone with quite a few extra zero’s in their bank account.
Dictionary.com defines rich as “having wealth or great possessions; abundantly supplied with resources, means, or funds”
Going off this definition, how much money does it take to make you rich? Do you get the amount from how much cash is in the bank, or how much your average paycheck is?
Would you also include your car payments, mortgages and utility bills?
Let me word it this way, there is a doctor earning an average income of $253,000 per year. Is the doctor rich?
What if instead there is a retired factory worker making money on the side of about $150,000 from long-term stock investments?
Which one is rich? Which one is richer than the other? How did you decide this?
Tough to say right?
Save Money using the Rich Mentality
I believe this is caused by people having an inaccurate idea of what it means to be rich.
Don’t get me wrong, having a well stocked bank account seriously matters, but think about some of the people we have heard about that have won the lottery, but then you later hear they have went broke.
They don’t have what I refer to as “The Rich Mentality”
If you pay attention when you’re reading an article or watching a video about successful, wealthy people, you will notice they have a lot of similarities between them.
Rich people don’t seem to think the same way as average, paycheck-to-paycheck living people. Here are some of the similarities I’ve noticed.
Most average people that do not have a well stocked bank account tend to think “MONEY is the root of all evil“.
Where most rich people would say “POVERTY is the root of all evil”.
Most rich people do tend to always think and put themselves first, which isn’t always a negative thing.
At some point we need to realize that the only person that will always worry about YOU is YOU!
I know it’s going to be a hard pill for some to swallow, but it’s the reality of the world we live in.
If you don’t start putting yourselves first and making sure to take care of you, there are no guarantees that anyone else is going to do this for you.
No one is entitled to anything and the moment you start living like you are, that is the moment you most likely will start going through some very tough financial times.
Everyone needs money, I don’t care who you are. You can say you hate money and have no use for it, but the fact remains that money is needed.
Don’t be ashamed of needing or wanting money Also don’t be afraid of obtaining it. Some may say you’re being selfish, but everyone is selfish, some are just better at being covert about it.
Anyone who didn’t inherit their money, has worked for every cent! They didn’t just decide to become rich one day and wake up loaded. I WISH!
Instead, you have to change the way you think about money.
Live frugal, be rich.
Living frugal is actually quite simple once you decide to do it and commit.
You can start any time, you don’t have to wait for the “perfect” time to start, if you try this I can assure you that perfect moment will never come.
The main way to live frugal is save… save, Save, SAVE!! I cannot stress this enough.
I’ve seen people only have a few dollars in their pockets and decide to spend it because they think “it’s only a few dollars, it’s not going to hurt anything”. WRONG! THIS IS WRONG!
Every dollar, every cent counts! Think of it this way, why do so many places even offer to sale products for a dollar if it doesn’t count?
Yeah… thought so. Always remember “IT ALL ADDS UP“! If you start setting aside even $1 every day, that becomes $30 in ONE month!
Even saving your spare pocket change will add up, I’ve had this save me on many occasions and utility bills.
I currently use Digit mobile app to help me save money automatically, which relives some stress from constantly trying to remember a budget.
You work hard for your money, don’t just give it away. Think of it as giving away part of your life, you are paid at work for the time you spend selling your services, whenever you buy anything you’re basically giving them your time.
So if you are paid minimum wage for example, you go out and buy that extra decoration for around the house that you had your eye on for $20, that is going to take you several hours at work just to be able to afford that. Is that decoration still worth it?
I cannot stress this enough, too many times I have seen people decide to purchase something knowing they have bills coming up soon.
I suppose they’re thinking they can quickly find a way to replace that money before the bill arrives, but why even risk it when you don’t need to?
If it’s something you can easily live without, then don’t buy it unless you have specifically saved up for that purchase!
Even if you know ahead of time about an up-coming bill that you need to pay, there are also the unknown scenarios.
What if your vehicle gets a flat tire, what if you get sick and have to miss work, that’s less money that you were counting on.
So many costly unknowns can pop up whenever, it’s better to know you have that extra money tucked away to take care of it.
Not only will doing this help you financially, this will also keep so much extra stress off your mind! That’s a win/win!
You cannot sit around and wait to get rich, sadly it just doesn’t work like this. You have to earn money, work for it and save money like it’s running out on the shelves!
No one will ever be able to save money without actively taking action every day to save. Even if you have set backs, just start saving again like it didn’t happen.
It happens, you can’t get that new exciting gadget off your mind and it’s driving you crazy. This isn’t the end for your frugal lifestyle, just keep saving as often as you can.
By being ambitious, you will actively keep trying, which not only saves money but will also help you change the way you think.
Saving money will become second nature after awhile and you won’t have to try so hard to keep remembering to save your hard earned money!
Surround yourself with people that are like-minded. These people will not only support your decision to try to better yourself, they can also help make saving money fun!
Try starting a friendly competition, see who can save the most money in a given amount of time. Try seeing you can come up with the most ways to cut back on costs, like using iBotta for money saving rebates.
There are so many ways you can involve your friends and family, not only for your own money saving support group, but also give the gift of having a rich mentality!
While these people are great, watch out for the leeches. These are the ones that will notice you have some extra cash and try to “borrow” it.
This reason alone is why I try to keep all my money in my free online bank, Simple.com. Keeping your money digital will help you also refrain from spending it.
Some will even go as far as insulting you, calling you selfish and greedy, just to guilt trip you into giving out your hard earned money.
This is why it is so important to surround yourself with people that not only understand you’re trying to better yourself, but will actually make it fun by being interested in their own personal finances, which in turn gives you someone to discuss ideas and tips with.