May 19, 2022

There’s this consensus that people who obtain wealth just make a lot of money or they inherited a lot of money. But the reality is most people who have a lot of money are good savers.

A lot of wealth is built by people who just make a decent salary or even an average salary. They just live within their means. We’ll share some of the commonalities of people who are wealthy.

They buy used cars

Wealthy people often don’t buy a new car. Studies show that new car values go down in the first month by 10% and within the first year, 20%.

It’s not prudent to buy a vehicle that will lose that much value. The average person has a car that’s about 5 years old. If you’re constantly making payments on a car, you’re not using your money wisely.

By keeping the same car for a long time, you can save a lot. But that goes against the grain of what many people do.

They don’t buy a house they can’t afford

People often rationalize house purchases. But people who are good with money know a good piece of real estate is one you can afford. Most people want to have their house paid off before they retire or way before.

They don’t use credit cards or they pay them off each month

Credit cards get people in trouble. They can be a slippery slope. If you use them, you have to be extremely diligent and pay it off every month. Or, even better, don’t use credit cards at all.

Check out the full episode or use the timestamps below to hear a specific segment.

0:21 – What brings about wealth

2:05 – Buy used cars

6:15 – Don’t buy a house you can't afford

8:53 – Don’t use credit cards

11:36 – Don’t buy name brand

For more, visit us online at http://flemingfinancialservices.com