Wealthy Individuals And Their Money Mantra
- Dec 4, 2024
- 3 min read
Updated: Dec 12, 2024
Written by Danijella Dragas, CEO
Miss. Dragas was employed by Bear Stearns Investment Banking firm for over 18 years. She worked in their offices of London, San Paulo, Beijing, New York, and Irvine. Her specialty was asset management, capital markets/investment banking during her final four years at Bear Stearns, Miss. Dragas was one of the original team members that introduced Bear Stearns mortgages to the banking industry in the residential wholesale market.
Ever wondered how wealthy individuals think about money and the principles they follow to build and sustain their fortunes? Behind every financial success story lies a powerful money mantra that guides their decisions and mindset. This article delves into the habits, beliefs, and strategies of the wealthy, offering insights to inspire your own financial journey.
4 simple money rules for a logical financial approach
1. Eliminate high-interest debt
The first rule is all about avoiding high-interest debt. “The first thing you do is pay off your credit cards because if you’re paying 15, 17, 19%, that’s a guaranteed return if you eliminate that burden.” Wealthy individuals know that paying interest on high debt means losing money. They use debt strategically and avoid interest that doesn’t benefit them. People with over $15K in debt can use debt relief programs like National Debt Relief to significantly reduce what they owe.
2. Build a safety net with savings
The second rule “Save six months’ worth of income for a rainy day.” Wealthy Individuals rarely have to stress to find cash because they keep their savings solid and accessible, usually in high-interest accounts like these. This gives them security and flexibility so they don’t need to worry about unexpected expenses.
3. Be smart about spending
The third rule also emphasizes the importance of being a smart consumer: “Believe it or not, if you’re making 25, 50, 75 thousand dollars a year, the best return you’re going to get on your money is being a smart shopper.” Wealthy individuals keep a close eye on expenses like insurance. They know that overpaying on things like car insurance is money they could put toward something more valuable. If it’s been a while since you compared your rates, sites like Coverage.com make it easy to check prices and see if you could save.
4. Invest wisely instead of spending
The fourth and final rule. “the best thing you can do is put your money where it works for you.” Wealthy individuals don’t spend excess cash; instead they invest it to build long-term wealth. It doesn’t have to be huge amounts at first. Some investment platforms like these even offer bonuses to open an account, making it easy to start small.
In the end, wealthy Americans don’t avoid spending entirely they just spend differently. They cut out costs that don’t serve them, prioritize security, and invest strategically. By following these principles, anyone can start building financial stability that feels less stressful and more empowering.
Read more from Danijella Dragas
Danijella Dragas, CEO Born and raised in England. She earned a BS in Economics/International Trade and Banking from the prestigious University of London. Miss. Dragas was employed by Bear Stearns Investment Banking firm for over 18 years. She worked in their offices of London, San Paulo, Beijing, New York, and Irvine. Her specialty was asset management, capital markets/investment banking during her final four years at Bear Stearns, Miss. Dragas was one of the original team members that introduced Bear Stearns mortgages to the banking industry in the residential wholesale market. She has continued her career in residential, commercial lending for 36 years. Her focus has been on construction finance, asset repositioning, fintech, and the blockchain market. In addition, numerous prestigious commercial projects on an international level. Miss. Dragas has also worked on multi-sector business finance, corporate sponsorships, hospitality, clean energy, trade programs, and pre IPO.
