Money is not everything, and the Truly Rich billionaire knows this. But he also knows how to manage the money he makes and he does it well. Here are things that billionaires do to maintain their wealth while continuing to live a rich, enriching life.
1. He does two things: preserve and expand his wealth.
Now that the billionaire has come to acquire a fortune, he knows that it would be wise not to spend it all. “Rich people don’t get rich by spending it all,” says finance researcher and founder of Unity Marketing Pam Danziger. “They know better than anyone that by being careful shoppers, they can achieve a lifestyle several rungs up the income ladder.”
2. The billionaire starts early.
He knows that the earlier he starts anything, the better. He wakes up early. He goes to work early. He even learned to save money at an early age. It doesn’t matter what amount he’s working with, he’ll be careful to put aside a generous portion and teach his children to do the same.
3. The billionaire has more than one source of income.
The single day job is not enough for the billionaire. To achieve financial independence, he must take on smaller roles apart from his job or business. Here are a few ideas.
4. The billionaire prepares a promising future for his children.
The billionaire believes that education is the cornerstone of a life well-lived. With this, he will do everything in his power to send his children to the best schools—not necessarily the Ivy League schools—and is willing to delay material purchases and move to another city to accomplish this for his children.
5. The tech-savvy billionaire makes use of automated savings.
Technological advances in banks are welcomed by the clever saver. You’ll never miss what you never knew, the billionaire believes, and an easy way to accomplish this is to allow the bank to instantly deduct from your account monthly to force you to spend less. Remember to increase the percentage deducted from your balance every time you get a raise.
6. The billionaire works hard but believes in delayed gratification.
Working hard means to do one’s very best in a field that one is passionate about. While rewarding yourself is the usual thought one gets on payday, the billionaire believes in delayed gratification and celebrates or treats himself after reaching a goal or within a certain timeframe.
7. The billionaire has his very own definition of a well-lived life.
This point of a life well-lived is very subjective and the billionaire next door knows this. He knows that to make the most of his life, he must continuously learn, share what he’s acquired with friends and family, and to engage in hobbies and activities that overall make him a better person. He does not care what others think, and as Byron Tully writes in The Old Money Book, “prioritizes personal reality over public perception.”
8. The billionaire invests wisely and keeps an eye out for the news.
The billionaire chooses to put his money into various investments, not just one. This will increase the chances for success if in case one investment does not do well. Not only that, the wise investor is vigilant of current trends and events and knows to differentiate a credible source from a scam.
9. The billionaire will rarely carry any personal debt.
This means he pays his credit card bill in full every month and never makes purchases he cannot pay in cash. It’s not only about paying in full, it’s about paying quickly. When credit payment is settled late, this can hurt the credit score and reflect on the overall debt usage ratio.
10. The billionaire knows that wealth comes by following two P’s—patience and persistence.
The pursuit of wealth and its growth are far from the fast-track lane. They know how to wait and when to go the extra mile. United States President Theodore Roosevelt once said, “Do what you can, with what you have, and where you are.” Your patience and persistence will eventually reap their rewards.
11. The billionaire is wise enough not to fall for that marketing ploy.
Despite what is portrayed by the media, the billionaire knows not to give in and purchase the newest whatsit based on trends or marketing. With a net worth of $60.7 billion, Warren Buffet has lived in the same house since 1958, while Facebook founder Mark Zuckerberg drives a manual-transmission Volkswagen hatchback and wears the same t-shirt and jeans combination almost every day, reports Business Insider.