What Are The Financial Habits Of Successful, Wealthy Couples?
Becoming a wealthy coupleThe following article is a guest post and may contain affiliate links:
We all sometimes dream of earning a seven-figure salary of winning the lottery. But for the vast majority of successful, wealth doesn’t just arrive on their doorstep one day. It’s the result of years of frequently see habits and careful financial planning.
For instance, the couples that effectively manage their money always keep tabs on what exactly they are spending their money on. According to experts, many couples get into trouble by failing to keep up with things like subscription costs. Just cutting down on a few unused subscriptions can often lead to significant savings.
What other habits to financial planners see frequently among people who successfully build wealth? Let’s take a look.
They Reverse Their Thinking
It’s a sad fact that wages in the US haven't risen for the median earner in over 18 years in the US. That’s despite a massive expansion in high technology and productivity. As a result, paychecks are often small, especially after taxes and other expenses.
But top financial planners say that couples have gotten their approach to building wealth wrong. Most of the time, couples will spend their money, pay their bills and then put whatever’s left towards their financial goals. That’s the wrong strategy, according to planners. They say that couples need to reverse their thinking. Financial planning for newly married couples should put financial goals as the top priority. Everything else should come after that if the aim is to build wealth.
It should be noted that this isn’t about starving yourself or getting evicted to reach your financial goals. It’s about putting away that little bit of money you can afford first, and then dealing with everything else afterward.
Build Your Own Psychological Defence System
We all know how tempting new, shiny consumer products can be. Who hasn’t lusted over a new pair of shoes or video camera at some point? But this type of short-termism and consumerism can derail even the best-intentioned savers.
There are defenses we can use against such temptations. One strategy is called “heuristics,” first suggested by behavioral economists. These guys suggest that people develop simple rules to help them deal with problem areas. A simple rule might be to spend no more than $3 on a cup of coffee or always to buy last-gen computer equipment. These rules help to simplify your mental processes and help couples avoid splurging on things they don’t need.
Live It Up Like A Secret Millionaire
People imagine that the lives of millionaires are dominated by flash cars and Michelin star meals out. But not everybody lives like Donald Trump. According to “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy” many are frugal. Thomas Stanley, the author of the book, came to this conclusion after interviewing dozens of very wealthy people.
What wealthy people tend to do instead is build their wealth privately, and save for the future. Sure, there might be a few Kim Kardashians and Kanye Wests out there. But the vast majority of wealthy people are living as millionaires in secret, saving for their retirement.