Top Ways to Be Smarter About Handling Money
Top Ways to Be Smarter About Handling Money
Whether they’re successful at it or not, almost everyone would like to be better at managing their money. The fact is money management plays a huge role in an individual’s personal wealth and financial well-being. While not everyone can be wealthy, everyone can be smarter with his or her money and manage it in a way that keeps it protected and keeps it increasing. So, no matter how much money you make you can take the necessary steps to manage your assets so as to not get into financial trouble. With that in mind, let’s look at what many high net worth individuals do in order to manage their money differently than most people.
Never Act on an Impulse
Most wealthy people avoid the trap of impulse buying. If you took the time to add up how much money you spent each week on little things that you never even think about, you might be surprised at how much you’re wasting. A few dollars here and a few more dollars there and before you know it you’ve wasted hundreds if not thousands over a year’s time. Wealthy people are able to avoid these types of purchases, even though they have the money to make them. This is just one more way they add to their wealth and protect what they have.
Patience Is a Virtue
Yes we all like instant gratification, but the fact is wealthy people have patience and that’s often why they enjoy both continuing and long-term wealth. Most people out to make a quick buck aren’t successful. Instead, make decisions based on long-term success. If you want financial security in the future you can’t base your decisions solely on what happens within the next few weeks.
Do You Want it or Need it?
We all have basic needs that must be fulfilled. However, how often do we justify a purchase as something we need instead of what it really is: a want. For example, do you buy new appliances or tech products simply because you want the latest and greatest thing, even though your current model still works perfectly fine? The wealthy base their decisions on need and not want.
Live Within Your Means
This might seem unusual because the wealthy have so much more, but they still know how to live within their means. On the other hand, people who do a poor job of managing their money often make bad purchases on credit and then end up with too much debt and eventually a bad financial situation. Debt is killer, especially when you don’t have the means to pay it off.
Debt is More Than Meets the Eye
That leads us to our next item. Wealthy people understand the true cost of debt. Debt is so much more than the cost of the item being purchased. When you get into debt you owe interest and that continues to add up until the debt is paid off, which means debt is much more expensive than the original price tag. The wealthy understand this principle and don’t get into more debt than they can handle.
Tips for Everyone
These are just a few of the ways that the wealthy manage their money differently than most. However, anyone who applies these tips is sure to see positive results, wealthy or not.
We hope you found this article about “Top Ways to Be Smarter About Handling Money” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
The IRS is Not a Bully, No.4
The IRS is Not a Bully You can poke a bully in the nose. Palo Alto, CA. July 4, 2014 – This is the Fourth installment of “The IRS is Not a Bully” series, identifying taxpayer concerns and the difficult position in which Congress puts the IRS. Namely, applying ever increasing pressure to operate in…
New Jersey Dems Looking to Tax the Rich Even More
New Jersey Dems Looking to Tax the Rich Even More The rich are already taxed enough, right? Although many would disagree with this statement, unfortunately there are others who think that no matter how much they take from them, the rich can’t ever be taxed too much. To that end, democratic lawmakers in New Jersey…
What to Do About Corporate Taxes?
What to Do About Corporate Taxes? The debate over corporate taxes has raged for years, but even though the battle has been going on for decades, it has definitely experienced some changes. The business world, and the world in general, has changed since the days when Ronald Reagan was in office. That means politicians have…
Can Life Insurance Policies Solve the Estate Tax-Retirement Conundrum?
Can Life Insurance Policies Solve the Estate Tax-Retirement Conundrum? Many top-level company executives and business owners share a common problem when it comes to planning for estate taxes and retirement. The problem is that many of these individuals wonder how they are going to both pay the necessary estate taxes while at the same time…