Friday, April 6, 2012

The Rich Man Habit

Rich man has some habit that is different with ordinary people. With a little money, they can make them rich; meanwhile, a poor people cannot get benefit from so much money. I have heard a millionaire can rich again after bankrupt. He just needs a trust from people to get the capital.
Here is some rich man money habit that you can follow it.
1. Saving first
Most rich people save the money for short term or long term purpose. The rich man does not want to spend the money for today. They set revenue aside for saving. The percentage of saving is that depend on your revenue. Most financial experts suggest saving ten percent of the revenue. You can increase the percentage when you receive more money.
The rich man invests the money at profitable investment such as stock, mutual fund, ETF, and precious metal. As the economic decline, some rich people remove the investment to asset such as land, gold, collectibles, and so on.
2. Budgeting
To control the spending, the rich man create a personal budget that describe the earning or spending for next month or year. The budget tell the owner on how much he or she going to spend next month. 
3. Avoid debt
Some rich people avoid debt especially unproductive debt such as consume debt, lease car, and else. The debt could make people bankrupt. Do not buy anything if you have no cash.
A man should not have propose jaguar lease car, if they do not have money. Use used car or buy Japanese or Korean cheap car.
4. Prioritize to pay bill
A household needs electric, gas, telephone, and others. Allocate part of salary to those spending post. Do not delay it until the company cut the electric, gas, or telephone. 
5. Frugal living
If you have small family, you can live at small house. The small house must be cheaper and it needs cheap cost to maintenance it.
6. Charity
Help other people means help yourself. Giving part of your money to other people will not kill you. Some people may help you someday.
For example, you are an entrepreneur who produce noodle. You donate your money to unlucky people who live around your factory. The people may buy your product and it will increase your revenue.
7. Working hard
Certainly, most rich people is hard worker. Some of them are workaholic. They believe that to reach wealth, a man should work hard. Certainly, they must pray and remember God.

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