Four Habits of Financially Smart People that Will Help You Get Rich in 2023

There is often a relationship between being wealthy and living on the waterfront, as waterfront property is often more valuable and therefore more expensive. 

However, it is important to note that this is not always the case and there are many factors that can influence the cost of waterfront property. 

There are many people who live on the waterfront who are not wealthy, and there are many wealthy people who do not live on the waterfront.

One thing that not many people may know about living on the waterfront is that it can come with certain challenges and responsibilities. For example, living on the waterfront may require the maintenance of a private dock or sea wall, and there may be additional insurance and safety considerations to take into account. 

Additionally, living on the waterfront can be more vulnerable to natural disasters such as floods and hurricanes, and residents may need to take precautions to protect their property. 

On the other hand, living on the waterfront can also offer unique benefits and opportunities, such as access to water-based recreational activities and beautiful views.

Now, as you plan to get rich and live waterfront, let’s talk about the importance of continuously learning about finances. The world of finance is constantly changing, and it’s important to stay up to date on the latest trends and best practices in order to make informed financial decisions.

This can involve reading financial news, taking online courses, or even hiring a financial advisor to help you navigate the often-complex world of money management.

Rich people Continuously learn about finances

Financial success isn’t just about making a lot of money – it’s about knowing how to manage and make the most of your money. That’s why financial literacy, or understanding how to handle your money, is so important. 

Many people who make a lot of money but don’t have a solid understanding of financial principles end up quickly spending or losing their money.

In fact, statistics show that 70% of lottery winners end up broke and 33% declare bankruptcy within 7 years of winning. 

This is also true of many professional athletes and entertainers who have made millions during their careers but ended up bankrupt, like Mike Tyson, Johnny Depp, and Nicolas Cage.

These examples illustrate the importance of having financial skills like saving, investing, and managing your money, regardless of your income level. 

To build wealth and achieve financial success, it’s essential to understand financial foundations like how taxes work, how to invest in stocks and real estate, how to pay off debt, and how to create a budget.

By learning these skills and making a plan, you can make your money work for you and differentiate between assets and liabilities.

Rich people put their money to work

People who are wealthy know the value of putting their money to work. If you were to give a group of people $10,000 each, 95% of them would likely think about what to buy with it, while only 5% would consider investing it to help them achieve financial freedom faster. 

Most people have a consumer mindset, but only a few have an investor mindset.

Financially savvy individuals understand the power of using their money to make more money. 

Rather than spending their hard-earned income on material possessions, they invest it in assets that generate income. This allows them to use their money as a tool to achieve financial freedom and independence.

Investing in stocks, index funds, or real estate can provide passive income in the form of dividends, rental income, or capital gains. Over time, the passive income generated by these assets can potentially replace the active income earned from a job or business.

Another thing to keep in mind is the power of compound interest. By starting to invest at an early age, you can take advantage of the power of compound interest, which can help your money grow exponentially over time.

This is a great summary of the importance of putting your money to work. It’s easy to fall into the trap of using our money to buy things that give us immediate gratification, but financially successful people understand the value of using their money to create long-term wealth.

Rich people save, save and save

If you want to build wealth and achieve financial success, it’s important to develop the habit of saving money consistently. 

As Peter Lynch said in his book Learn To Earn, “Save whatever amount you can afford, on a regular basis – whether it’s $10 a month, $100 a month, or $500 a month.”

Some people argue that saving isn’t worth it because inflation erodes the purchasing power of your money. While this is true to an extent, it’s important to remember that saving is the foundation of financial health. 

Without the ability to save, you won’t have an emergency fund to protect you against financial setbacks, you won’t have capital to invest in income-producing assets, and you won’t have the freedom and flexibility to make big life changes.

So, start saving as much as you can. It may not be easy at first, but the benefits of having a strong savings foundation are well worth it.

Rich people Resist Lifestyle Improvements

It’s unfortunate, but most people tend to spend everything they make. Whatever money comes in, goes right back out. 

While there are certainly necessary expenses like rent, insurance, and groceries, there are also a lot of unnecessary expenses that can add up over time. These might include dining out at fancy restaurants, buying expensive clothing or electronics, or upgrading your car or home.

This phenomenon, known as “lifestyle creep,” occurs when your income goes up and your expenses go up along with it, as you try to upgrade the quality of your life. While it’s okay to treat yourself from time to time, it’s important to be aware of lifestyle creep and make sure it doesn’t get out of control.

People who suffer from lifestyle creep often have a consumer mindset rather than an investor mindset. Rather than thinking about how their money can be used to achieve financial freedom, they focus on all the fancy things their money can buy. 

However, when you make more money, it’s important to remember to invest in income-producing assets that can help you reach financial independence, rather than just buying more material possessions.