People with a poor man’s mentality love to show off their wealth. Many of us are envious by those around us who have the latest gadgets, flashy cars, designer handbags; keeping up with the Joneses is all in a day’s work. We’ve fallen prey to the myth that ‘the more you own, the richer you are’. In actuality, the more you flash your wealth, the less wealthy you are.
What separates the wealthy from the ‘poor’ lies in how they handle their money. You might not be a millionaire but you can manage your money like one, and certainly end up with more. Start managing your finances now with these simple tips:
- Start with a goal Identify your needs and what it takes to achieve them. Imagine the kind of lifestyle that you’d like to live, how much it’ll cost you, and start making plans to get there. One of the things you can think of is how you’d like to live your life when you retire. Come up with an estimate, and work out your strategy to achieve it. If you don’t start with a goal, you’re likely to spend unnecessarily, or worse, end up in poverty.
- Make short-term sacrifices If you have debts that are weighing you down, start working on getting the burden off of your shoulders. What you do with your money now will greatly impact your life in the future, so manage them wisely. In order to get a better and more comfortable life, sometimes you’ve got to sacrifice a few things. Trade off the things that don’t really contribute much to your life, such as expensive coffee and regular trips to the mall. Your future self will thank you.
- Build your wealth with a premier banking solution Get smarter in managing your finances and earn more by taking advantage of premier banking solutions. There are several wealth solution products to choose from, such as deposits, insurance, investments, home loan, and portfolio financing. Check out OCBC Bank’s best premier banking solution for high earners. The bank also offers several wealth solution products for you to choose from, depending on your needs and budget.
- Understand the overall cost of debt Asking how much the monthly payment will cost you is the poor person’s way when considering a purchase, particularly for expensive purchases like cars. The right way to manage your finances properly is to understand the overall cost of debt. Multiply the loan’s number of months by the monthly payment. This way you’ll get a clearer picture of what it’s going to cost you. You’ll be shocked by the total amount (excluding taxes and depreciation) which will cost more than your intended purchase. In this case, you might want to stick to your old car.
- Make smart investments Make investment a habit by automating it, like making payroll deductions to your retirement account. However, this is not enough. You can also use your money to earn more by investing in real estate, stocks or bonds. Before you start investing in something, understand what it is that you’re investing in. Come up with investment goals and figure out how much it’ll cost you to achieve them.
Start saving at least 15% of your earnings now, and do it until the day you retire. Avoid piling on consumer debts no matter how tempting it might be, and always remember to do your research and get a financial adviser to help you with managing your wealth. There’s a huge pay off for those who take the time to manage their money. It’ll help you to stay on top of your bills, release you from debt, save more money, and have comfortable retirement years.