9 Real Life Hacks Rich People Use to Manage Their Money

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Living paycheck to paycheck is an exhausting cycle. Most importantly, it’s a waste of your time. If you’re serious about improving your finances, it’s time to adjust your mindset and embrace the real life money hacks of the rich.

There isn’t a secret sauce to getting rich. Having the right mindset and financial behavior is crucial to creating and retaining wealth.

One Duke University study found that 40% of the time you operate on autopilot. This means all habits (good or bad) play a significant role in influencing the outcome of your life. Therefore, if your mindset is guided by self-doubt, that doubt will manifest itself into your day-to-day thinking and behavior.

Likewise, if you have poor money management habits, you’ll remain in a cycle of past-due bills, minimum payments, unnecessary fees, and constant worry. Instead, that time could be better spent on creating and acquiring opportunities to make more money.

So, let’s break the cycle. You’re here for a reason. To discover real life hacks that help build a better financial future for yourself.

Let’s delve right into the life hacks you need to start thinking to become more productive and behave like the person you aspire to be.

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Ditch Your Self-Doubt, STAT!

Do you dwell on a negative feelings or experiences for hours on end?

You’re not alone in your self-doubt, but you’re also not alone in this self-destructive behavior. It’s killing your motivation to make more money. That’s why the first thing you have to do is dump that negative thinking now.

Just think of everything you’re missing out on because of crippling self-doubt:

  • Going for that promotion at work
  • Seeking out more lucrative career opportunities
  • Developing new, highly marketable skills
  • Meeting mentors who could be valuable to your career
  • Taking healthy risks to grow your wealth, like smart investments for example.

Think Long Term, Not In The Moment

One of the biggest blockades to financial freedom is instant gratification. Most specifically, impulse buys.

Not every entrepreneur is born rich. In fact, icons like Oprah Winfrey, Leonardo Dicaprio, and Richard Branson had very little money to work with as they climbed the ladder. Rather, they kept their eyes on the prize and didn’t indulge in unnecessary excesses when they couldn’t afford them.

Instead, they used real life hacks to combat impulsive behavior and focus on long-term goals.

Every impulse buy you make creates an unnecessary financial hurdle you don’t need. Suppose you buy a $99 jacket on credit but never wear it. Because you make minimum payments on your credit card, you practically break even because of hidden fees. Therefore, that $99 jacket is suddenly a $150 jacket.

Buying clothes you don’t need isn’t the only impulse spending habit you need to break. Don’t forget to ditch these guys as well:

  • Spending money on expensive dinners
  • Buying a new car instead of improving your current one.
  • Buying expensive groceries, avoiding on-sale items.
  • Throwing out clothes and accessories in lieu of repairing them
  • Wasting money on vacations, concerts, and events instead of paying off debt.

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Avoid Debt Like The Plague

Contrary to popular belief, truly successful people do not wallow in debt. In fact, getting rid of debt is the #1 priority of people determined to turn their fortunes around.

Moreover, bad debt harms your credit score, making it even more difficult to own a home, lease a commercial space, save up startup capital, or acquire additional assets.

Plus, debt takes a  serious toll on your mental health. Denying and avoiding your debt is a recipe for panic, stress, anxiety, and depression. Of course, this also plays right into the negative cycle of self-doubt that you want to avoid.

Take Self-Education Seriously

Education is critical for your success.

But why do some rich people have fancy degrees and others don’t?

For example, tech icons, Mark Zuckerberg and Bill Gates, are two notorious college drop-outs. But that didn’t stop them from continuing their education in different ways.

If they had merely dropped out of college and stopped innovating, there would be no Facebook or Microsoft. Instead, Zuckerberg and Gates embraced self-education to stay ahead of the curve.

So what’s the secret to self-education? Reading, lots of reading.

Motivational author and speaker, Thomas Corley, found the following was true about most wealthy individuals:

  • 86% of successful individuals genuinely love to read.
  • TV time is limited. 67% report that they only watch one hour of TV per day.
  • 55% read material focused on personal development.
  • 94% stay up to date on current events

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Create Multiple Income Streams

As your self-doubt fades and debt dwindles, your next step should be to establish more forms of income. Plus, you’ll notice that most financially successful individuals have more than one income stream.

These are a few of the ways rich people generate more income for themselves:

  • Invest money wisely and frequently in the stock market.
  • Offer consulting services on the side.
  • Buy properties to rent or lease out.
  • Create digital products like eBooks and Courses to generate passive income.
  • Give talks and speeches.

With multiple forms of income, you can save faster for retirement, future assets, business capital, and new business resources.

Use Real Life Hacks For Goal-Setting

Without goals, you have nothing to work toward. Goals give you purpose, just like the goals of successful CEOs of fortune 500 companies.

Concrete goals keep your eye on the prize, therefore, you need goal-setting techniques to stay focused.

To illustrate, suppose your goal is to accumulate enough capital to buy a small storefront for your new cookie business. Therefore, you need to create a goal strategy for meeting that number.

To make sure you reach your financial goal, your goal strategy should be comprised of small, manageable sub-goals you can achieve. For example, cutting out an unnecessary expense or increasing your side freelance work per month.

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Calculate Everything

It may not seem like it on TV, but the majority of wealthy people don’t carelessly throw their money around. You can’t let money just slip through the cracks. That’s why most financially successful people keep meticulous records.

Furthermore, rich people know where to find opportunities to save more money. The more income you make, the more tax deductions, write-offs, and programs you can take advantage off.

Not only that but the more organized your finances are, the easier tax season will be. Staying on top of your taxes prevents you from getting hit with penalties and tax obligations you could otherwise avoid.

Starting today, keep a spreadsheet of your finances. You won’t regret it!

Recognize Valuable Financial Advice

You learned earlier how important self-education is for successful individuals, but it’s just as important to also seek the advice of reputable financial experts.

You can’t keep up with every twist and turn on wall street, but a trusted financial advisor can help you hone in on investments that are worth your time and money.

Securing a trusted financial expert will help you master the last of these real life hacks of the rich and powerful.

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Take Healthy Risks: Invest Wisely More Frequently

There’s a stigma to the word “risk”, but no successful entrepreneur has gotten to where they are without it.

Risks bring greater financial rewards, but it’s important to take “healthy risks” as opposed to just being risky.

This is why self-education and reputable financial mentors are so important to successful individuals. You need access to high-quality knowledge and data to make wise investment decisions. Moreover, it’ll help you branch out into more investment opportunities, such as new business ventures and innovative ideas.

Think you’re ready to break your bad money habits once and for all?

It’s time to get away from the paycheck-to-paycheck mentality. Take a cue from the real life hacks of the wealthy to turn your finances around and build the future you want.

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