There is a difference between being rich and having wealth. Wealth is the abundance of something in such surplus that no conditions can destroy it. Making a lot of money is one thing, getting rich another. Creating wealth, well, that’s what very few people ever learn. You have heard the expression “get rich quick,” but you will never hear “get wealthy quick.” Ever hear the saying, “money never sleeps?” The wealthy take this literally and believe that money must work around the clock to grow. The wealthy respect and pay attention to their money knowing that nothing multiplies without attention. They also know money wants to be loved and acknowledged.Sound crazy? Show me someone that doesn’t pay attention to their money or is disrespectful of it and I will show you someone lacking money. The wealthy also avoid mistakes that big income earners and the rich make. Here are some common money mistakes you must avoid to create wealth:
- “One of the quickest hacks to put more money in your pocket and take control of your finances is to set your credit card bills to be automatically paid in full each month,” says San Diego Financial Planner Taylor Schulte.
- The convenience of investing in your work-sponsored 401(k) plan can’t be understated, but using only one account for retirement may not be enough. Not only could you come up short by the time you reach retirement, but there are notable disadvantages that come with investing only in tax-advantaged accounts.
- Brandt notes that working with middle-class clients has given him a unique perspective on common money drains. “We’re enamored with the idea of impressing others with our vehicles, but that often means overspending by thousands of dollars each year,” says Brandt.
“About half of Americans lived in middle-income households in 2014, according to Pew Research.”