5 things rich people don’t want to buy but poor people love to own
Many self-made millionaires reveal that the secret to achieving financial freedom is to diversify income and save. They are always looking for ways to increase their assets instead of spending them. If they have to spend, they will only spend money on things that are really necessary.
According to Business Insider, millionaires or money wise people almost never spend money to buy the following 5 things:
The house is beyond affordability
Money-wise people don’t want to buy a home that’s beyond their financial means because they know it should be something they don’t have to borrow or use most of their savings to buy.
A self-made female millionaire shared: “My wife and I actively saved to pay for a house at the age of 40. We chose a small, affordable house so we wouldn’t have to pay too much money and retired more comfortably. If we buy a bigger house, we will have less money to save and invest for early retirement.”
New car
Illustration: Internet.
A financial expert said: “People who own many millions, even billions of dollars will still drive an old car.”
A statistic shows that a new car loses 10% of its value in the first month of use and 20% in the first year. Money-wise people don’t like this. Instead, they buy used cars or still drive old cars from years ago to save money. For them, a car is merely a means of transportation.
Purchase with a credit card
Whether buying a few dollars or a few thousand dollars, the money-wise person will not be willing to pay interest. Credit cards charge monthly interest, many cards even apply interest rates up to 25% or higher. Self-made millionaires cite credit card abuse as one of the money mistakes many people make.
Of course, there’s no denying the convenience of a credit card in today’s life, but it can turn into a double-edged sword, causing you to overspend without realizing it. Over time, you will be dependent on borrowing via card, spending and then struggling to bear high interest and repay debt.
Luxury brands
Even with plenty of money to spare, the money-wise is less interested in luxury brands. That’s why the world’s millionaires and billionaires dress simply, using popular items.
They tend to focus on quality instead of quantity. One self-made millionaire said: “Breaking up possessions is no longer a way of expressing wealth. In the US, the richest 1% of the population has spent less on material things since 2007. They are spending more on privacy, health and education.”
Organizing an expensive wedding
Anyone who has ever hosted a wedding knows how expensive the event can be. Even without doing that, the money-wise person has no intention of splurging on this day.
A 25-year-old guy who has saved more than 100,000 USD and is aiming to become a millionaire, financially free, said one of the things that helped him accumulate the above money was to organize an expensive wedding. short. He and his wife only spent about 10,000 USD for their big day.
Source: BIEN
Following Economic Life
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
