Wealth Is Quiet—3 Smart Money Habits You Can Learn From The Quietly Wealthy
You can become rich by amassing a large amount of money—but you can only become wealthy by guarding and building your fortune.
Wealth is quiet—here are 3 smart money habits you can learn from the quietly wealthy.
Habit #1 They Practice Frugality
You can be frugal and still spend money—you don’t have to deprive yourself. You can also be frugal and still make large purchases (as long as you can afford them). And being frugal certainly does not mean being cheap. Cheap uses “price” as a bottom line to spend less, whereas frugality uses “value” as a bottom line to prioritize spending.
Perhaps, then, we should call frugality an art—the “art” of spending money wisely through conscious effort, and in a money-efficient (and time-efficient) manner.
When you shop around for a better price, you are being frugal because you are looking for an opportunity to pay less for the same item. When a meal is too much for one sitting and you save some to make another meal, you are being frugal because you have taken an action that was both money- and time–efficient.
It seems like we all practice frugality at one point or another in our lives—so, what do the quietly wealthy do that may be different from what you do?
The quietly wealthy practice frugality as the most basic financial habit, then save and invest a much larger portion of their income, allowing them to preserve and grow their wealth and remain financially independent.
Habit #2 They Practice An Abundance Money Mindset
Do you feel that that you always want something more than you already own, or that there is never enough money? If this is the case, you have what is called a scarcity money mindset, and practicing an abundance money mindset may sound counterintuitive to you.
The truth is, your mindset can play a significant role in how you spend, save and invest your money.
Having a scarcity-mindset means seeing money as a finite resource. The quietly wealthy do not let their current bank or brokerage account balances put limits on their thinking about their potential and ultimate wealth, even when they are starting out—they practice an abundance money mindset, recognize the possibilities, and invest when they see an opportunity to guard and grow their excess wealth.
Habit #3 They Preserve Their Money And Make Their Money Work For Them
As the quietly wealthy increase their income, rather than increasing their expenditures, they maintain discipline with their spending on true current needs. They then increase their financial prosperity through diversifying into wealth-generating assets—and doing so with the least amount of effort possible, making their money work for them.
The Bottom Line
You can be rich without being frugal, practice an abundance mindset, and preserve and make your money work for you, but beware of living a lifestyle that is difficult to maintain.
Real wealth is not loud and comprised of status symbols, it is quiet. The quietly wealthy invest their money and have passive streams of income, because they view money as a tool to create more wealth, to have more choices in life, and to provide the freedom of having time back for life itself.
Preserve And Build Your Wealth With Bloom
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This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.