In today’s society, the gap between the wealthy and the poor seems to be widening. While there are certainly systemic issues at play, there are also personal habits and behaviors that can contribute to financial success or failure. Wealthy individuals often possess certain habits that set them apart from those who struggle financially. Some of these habits shouldn’t be emulated if you are struggling financially. Here are 14 habits of wealthy people that the poor need to stop following.
1. Having Extravagant Lifestyles
Wealthy individuals often have lavish lifestyles, which are beyond what the average person can comfortably afford. From eating out at expensive restaurants to attending pricey events, many wealthy people’s social calendars will cost you a pretty penny.
2. Taking Lavish Vacations
The wealthy are often seen traveling to exotic locations and spending exorbitant amounts of money. It’s not wise to go into debt just to take a vacation. If traveling is not within your means, perhaps think of ways to create meaningful memories that don’t have a hefty price tag, such as going to a park or visiting a free museum.
3. Overspending on Groceries
Many wealthy people shop at stores that are geared toward organic products and specialty items for certain diets. For the most part, there are more economical alternatives to these items and stores that are more reasonable. If you are struggling to afford groceries, don’t follow the wealthy’s habit of overspending on groceries.
4. Relying on Credit
While credit can be a useful tool when used responsibly, relying too heavily on credit can lead to debt accumulation. Wealthy individuals use credit often but can pay off balances promptly. Conversely, the poor usually accumulate debt and pay high-interest rates for credit card usage. If you rely on credit cards, make sure you have a strategy to pay it off.
5. Buying Luxury Cars
Purchasing a car is a huge financial commitment. It may be tempting to purchase the latest Tesla or Mercedes, but you should avoid luxury brands if it’s not within your budget. The wealthy can afford these purchases and don’t accumulate debt when they fill their garages with luxury vehicles.
6. Making Too Many Risky Investments
Wealthy individuals are not afraid to take calculated risks in pursuit of their goals. Poor individuals may avoid risk-taking due to fear of failure, missing out on potential growth opportunities. While there is a certain risk tolerance required for investing, poor individuals shouldn’t be risking their whole portfolio on very risky investments.
7. Lacking of Self-Discipline
Wealthy people often exhibit a lack of discipline in their financial habits, such as indulging in impulsive purchases. In contrast, poor individuals need to be mindful of every purchase that they make to avoid financial pitfalls.
8. Overspending on Education
While education is very important in building wealth and success, degrees from expensive private institutions and advanced degrees may not be financially feasible for some individuals. Instead, it’s important to choose quality educational programs that are within your means. Instead of going further into debt, it’s important to explore financial aid and scholarships.
9. Failing to Budget
Sometimes wealthy individuals stretch their budgets and splurge. If you are struggling financially, it’s important to keep a clear budget and stick to it.
10. Comparing to Others
Wealthy people often work hard to keep up with people in their circle. For example, this might look like purchasing expensive handbags or designer clothes to impress their wealthy friends. Poor individuals may feel inadequate when comparing their finances to those of others, leading to unhealthy spending habits. Don’t fall into the spending habits of the wealthy if you value your financial health.
11. Avoiding Hard Work
Some wealthy individuals have a sense of entitlement and avoid hard work. The poor don’t have this luxury. Hard work is the key to making ends meet and achieving success in the future.
12. Splurging on Health and Wellness
From supplements to personal trainers, the wealthy often spend thousands per month on health and wellness. Some of these treatments are merely superficial and have little health benefits. While exercising and maintaining a healthy diet will save you money on health expenses in the long run, it’s important to not overspend on health and wellness, especially since the industry often overcharges for products and services that have very few benefits.
13. Indulging in Luxury Real Estate
Buying real estate that is more than you need, is a habit of the wealthy that poor people need to stop following. Mansions with expensive finishes and thousands of square feet probably aren’t realistic for people struggling financially. A modest house within your budget is a more prudent investment.
14. Blaming Others
It’s easy for the wealthy to blame individuals in their circle for financial missteps, such as bad investments. This bad behavior is a luxury that only the wealthy have. If you are struggling financially, it’s important to be financially literate and know where your money is going. Costly mistakes could have detrimental effects for the poor.
Breaking Bad Habits
Don’t throw away your money. Adopting the habits of wealthy individuals can significantly harm the poor’s ability to achieve long-term financial success. By breaking free from detrimental habits and adopting a mindset focused on financial responsibility and growth, anyone can take steps toward building wealth and achieving financial security.
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Teri Monroe
Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
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