Skip to main content

Distinguishing between Rich vs. Wealthy





















Would you rather be Rich or Wealthy?


Annette Bui | Updated April 26, 2020 | Lifestyle Mortgage Blog


Having the right money mindset takes you a long way to distinguish yourself from the Rich vs. the Wealthy attitude. Maintaining the appropriate mindset towards money has become truly popular and got a number of folks enthusiastic about why they give thought to it the best way possible. It got me considering that it will probably be will benefit you to discover this matter even further, and speak concerning the variations between a “Rich Mentality” and a “Wealthy Mentality”

There are significant distinctions between a rich vs a wealthy mindset when it comes to the following topics:

 
 There are a number of variations between a wealthy mentality and a well to do mentality with regards to the under topics:

 1. INCOME

While many families believe that breaking the $100,000.00 threshold is a good benchmark for wealth when it comes to income. Then they reach that benchmark, their lifestyle expenses increase, and then that 100k doesn’t seem like so much money. So they shoot for the next benchmark and… guess what? Monthly expenditures go up and again it doesn’t feel like enough so basically, it becomes an ongoing cycle trying to break the next tier. The reality lays behind the behavior towards money management rather than the mentality of ever feeling there is enough of it. The cycle will always continue as long as the behavior towards money remains the same. The rat race continues with living the lifestyle of the rich mindset where money only generates from the time it takes to earn.


 2. SAVINGS-Make your money work for you!

The way a person with a rich mindset looks at savings is quite different than that of one with a wealthy mindset. If you are someone who has a rich mindset, you likely have a large sum of money saved in a bank. I personally have done this myself! I used to be obsessed with the idea of having AT LEAST 6-9 months of living expenses in the bank at all times. 

The problem with this is that the money sitting in the bank is not working for you, and is actually losing value due to inflation. The idea of not having your savings readily available in case of emergency is scary. Please understand that I’m not talking about emergency funds, or having some amount of cash handy. BUT, I am talking about investing any large sums you may have sitting in the bank into investments that can work for you!


3. EVERY DOLLAR HAS A JOB

Don’t just focus on the large purchases but also the everyday small buys from coffee at Starbucks or a frivolous lunchtime snack. These things all add up over time and eventually impact as much as an individual buy.


Most people reason that if the budget for the big-ticket items that that is okay to not worry about the little purchases. The reality is these expenses add up and they do so faster than you realize! Guess what those small purchases add up to? You guessed it- Big ones!! The reason this falls into a rich mentality is that I’m fortunate enough to not NEED to worry about spending 20 bucks on lunch out.  But if I was coming from a wealthy mindset, I would anyway because every dollar spent on something small is actually a dollar that could be spent on something larger and more meaningful. 


 4.Create a Game Plan

They say we are 75% a reflection of the people we are surrounded by, so don’t stress about being in a learning curve or feel like you don’t belong if you find yourself amongst others that are at a different level of wealth you aspire towards. It is smarter to build relationships, with those who you can learn from and find a mentor. More often than not, people are delighted to share their stories. Engage in their "why" and found out what they advise they would give their younger selves.

The information provided herein has been prepared by a third party company and has been distributed for education purposes only. The positions, strategies, or opinions of the author do not necessarily represent the positions, strategies, or opinions of the company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms, and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.






Comments

Post a Comment

Popular posts from this blog

How do Condos measure against Single Family?

How does a condo measure up against a Single Family? Annette Bui | Updated April 28, 2020 | Lifestyle Mortgage Blog While you shop for your dream home, the possibilities may seem overwhelming. Whether you want to be near your hometown, close to work or proximity to quality school districts. One of the bigger questions as you venture to different neighborhoods is the lifestyle differences between choosing a town home or a single-family residence. The debate brings some serious considerations into light such as amenities or association dues as opposed to guard gated neighborhoods or extra space for a growing family   Here are a few factors to consider while you list your pros and cons and review your options. Single Family or Condo? The first priority is to determine where you want to live, whether it is in a large urban city like New York or a suburb in Long island that means it would take a bit more of a commute to get to downtown? These questions are all essential because t
Post a Comment
Read more

How do Renovation Loans work?

  How do Renovation Loans work? Annette Bui| Updated June 05, 2020 | Mortgage Programs 101 The purpose of renovation loans or 203k is that it allows both homeowners and home buyers to build the cost of doing a rehabilitation project on a house and roll it into the mortgage. The benefit of this program is that it makes the upgrade process more affordable without having to incur expensive credit card interest and maxing out your debts. You can finance the cost into your mortgage at a lower interest and have a fixed payment. Additionally, the projected renovation updates will improve the value of the collateral and better secures the lenders position. This is designed to help save both time and money for homeowners to gain access to more prospective homes rather than be limited to the homes already in good condition. How can a Renovation Loan be used? The scope of the rehabilitation loan covers expenses of a minimum of $5,000 in costs and up and can be used for virtually any u
Post a Comment
Read more

How do Investment property Mortgages work?

How do Investment property Mortgages work? Annette Bui |Updated May 29, 2020 |  Mortgage Programs 101 Investment properties are a great way to leverage assets to create wealth, whether it is a property purchased with existing tenants that occupy the whole house or a multi-family unit with multiple tenants. The intention is to acquire income producing property so essentially another party is paying the mortgage for you for either a short term or possibly long-term investment. When qualifying for this type of loan, depending on whether there is an existing tenant or not. The income may be used to offset your mortgage and other expenses. Unlike primary and secondary homes, an investment property does not have restrictions such as a minimum distance from your primary residence and does not have to be near a resort. In some cases, such properties do not get mortgaged to generate rental income but rather upgraded or remodeled and later sold for a profit by real estate flipping.   A
Post a Comment
Read more