Tips From The Rich – How to Manage Money

If you are like most people you probably feel as though you don’t make enough money and don’t know what to do with the money you have. The ultra rich know how to manage money and are able to manage they lifestyle we all dream of. Here are several tips that you can turn your finances around and make you far more wealthy than you imagined.

Better Time Management at Work

There are ways to use your time more wisely at work. Many of us love the water ‘cooler meetings’ but are they the most productive use of your time? Probably not. Rather than gossiping about the latest episode of ‘Lost’, spend your time trying to become an expert on a specific part of your job, or find ways to cut expenses. The more you put into your job the more you will get out of it. Make yourself stand out as the best candidate for any promotion or salary increase. If you are motivated enough you may find yourself in your bosses chair.

Negotiate Your Salary

When most people start at a new job they are often afraid to negotiate their salary and take whatever is offered. Statistics show that people who negotiated their salary increased their pay by nearly 8%versus those who did not. What’s the worst that could happen? You might just get the big fat pay increase that you want and find new ways of how to manage money.

Be More Charitable

It’s amazing how well the ‘pay it forward’ mentality works for the wealthy. The average household with an income of over $500,000 gave away over 6% of their income to charities or special causes. Not only does giving back to those in need give you great satisfaction but you are also able to write off donations at tax time. If you are really on top of things you may even be able to put yourself into a lower tax bracket.

Own Your Own Business

As the old adage goes ‘you can never get rich by working for someone else.’ It takes a lot of work, determination, frustration and sleepless nights to own your own business. On the other hand, the sense of accomplishment, satisfaction and financial rewards of having your own business are immense. Before you quit your job and open a franchise that sells chocolate covered bananas, do a lot of research and create something that will be able to sustain you and your family. The more preplanning you do and learn how to manage money properly, the more successful you will be. Entrepreneurs don’t become wealthy by mistake.

Strategize Borrowed Money

The wealthy often borrow as much money or more than the average person but they way they borrow money is very different. The wealthiest people in the world are half as likely to have credit card debt and they are also less likely to have auto loans. Most of the wealthy carry mortgages much like the average person and they are three times more likely to have loans on real estate investments. The rich know how to manage money better than most people because they wisely borrow.

Buy Into Real Estate

Do you think Oprah or Donald Trump rent their homes? If you want to get ahead with your finances and stay ahead you must buy real estate. Don’t go beyond your means. Try to purchase something that you are able to afford and can even fix up and sell in a few years for a major profit. If you rent, your money is going down the drain. More often than not your mortgage payment will be as much as you are currently paying in rent.

It may take baby steps but if you want to get ahead with your finances follow these tips of how to manage money. The wealthy didn’t get that way by mistake. They often take calculated risks and are rewarded financially in the end. You have it in you to make the same kind of decisions and start making the money you’ve always wanted.

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Filed under: Personal Finance

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