| By :
Jackie De Burca
Whilst in the depths of money worries, how many of us take the time to understand how the wealthy got wealthy and continue to get even wealthier? It is a hard question to answer honestly but no doubt there are some who are envious of the wealthy, some who don't understand what they are doing wrong and then some who realise that to mimic the habits and strategies of the wealthy is a good way to go. Think about it, if you want to be really successful at something, let's say you want to be a great footballer or tennis player; no doubt you will have at least one personal all time favourite from your sport. Some healthy role modelling works throughout all aspects of life be it business, sport, health or personal finance. Here are four key financial strategies of the wealthy that you can start to mimic, and I can tell you that they do work. The first may come as a surprise which is that the wealthy regularly give money to others. On one level giving some money to others helps you to appreciate what you already have yourself and this generate a more positive money attitude. In America households who have an overall total of $500,000 or more in assets give away about 6% of their earnings, which is about three times the average of all American families. Looking at this in a slightly different way, money is a form of energy and giving and receiving is part of parcel of a healthy attitude towards it. Some consider this to be the practice of paying it forward, but whatever way you prefer to see this it does work. The wealthy contribute to funds and investments. 62% of rich Americans either own or contribute to mutual funds, IRAs and other plans and investments. Credit is something that is avoided far more by the wealthy. The rich in America are 20% less likely than others to have instalment loans and half as likely to have credit card debt. Our society is so used to accepting credit as a way of life, but imagine changing your attitude about this and see how it affects your overall financial attitude and behaviour. The final key financial strategy is to reconsider how much you spend of your car or cars. The majority of wealthy people don't spend much money on their motors as a percentage of their wealth. 2.4% of the wealthiest Americans' net worth is spent on their cars. So in summary give money to those in need, invest, start restricting your credit lifestyle and reconsider your spend on cars. Apart from this take the time to realise that many wealthy people got to where they are today by making sacrifices along the way. They did not spend money carelessly and adopted more frugal lifestyles when necessary.
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