It is quite a common misconception that only poor people live off budgets. The common wisdom seems to hold that the rich do not have to live within certain means because they have enough money to do whatever they want. Well, that may be the case, but how do you think they got there in the first place?

Several years ago, I worked for a local car dealership. The man who owned it was easily one of the richest men in the county, worth several million dollars. Yet every day I would watch him get a drink from the machine, then go to the snack machine and get a packaged sandwich, and then brag about only spending $1.75 on lunch. This from a man who could no doubt buy the restaurants he wishes to eat in for every day of the week.

He also did not live in the sprawling mansion you might expect, but a rather modest ranch home not far from the dealership. There was nothing outward to indicate that this was home to a sizeable percentage of Gwinnett County’s money.

I think this man’s success, and his lack of showing it off, resulted from a healthy attitude towards money, not only acquiring it, but having and maintaining it. It made me wonder exactly how wealthy people approach their money.

You need a healthy awareness of money for what it is, a tool to be handled and used effectively, not carelessly.

Curb your desire. Many people say that money is the root of all evil. If we quote the Scripture correctly however, it says that the “love” of money is the root of all evil. Do not look to money for happiness nor as the answer to all your problems. With additional wealth come additional problems.

Keep yourself grounded. Money has a way of gravitating towards those individuals who are best prepared to handle it and live with it (which explains why so many of us aren’t even remotely close to being wealthy).

Take care of your addictions. Substance or alcohol abuses have driven more than one rich man to the poor house. But even the more innocuous ambitions, such as power or sex or material goods, can have dire consequences.

Spend less than you make. This should be a no-brainer. Remember that only the government gets to spend more than they take in, and of course we can see how well that has turned out. Make out a budget to correspond with your income and stick to it.

Save something every paycheck. If you can save 5% of your income every pay period, you’ll be surprised at how rapidly it adds up. Even if you can only put aside five or ten bucks, you’ll still be developing a healthy habit.

Some suggest trying to cut your spending by 25%. If you’re like me, your knee jerk reaction is “where?” But the fact is that most of us can do it; it just becomes a matter of deciding what is important to us. You can take your lunch to work, exercise restraint in what you buy, rent your movies instead of mortgaging the farm for tickets, repair things as opposed to replacing them, and generally finding ways to live cheaper.

Look into investing. Not get rich quick schemes, mind you (make no mistake, they are scams), but real, genuine financial investment. Learn how to let your money go to work for you as opposed to you working for your money. It may take some time, but the ultimate payoff may be quite attractive.

Look for ways to develop a long term passive income. Bonds, business profits, residuals, or rental properties may prove to be lucrative moneymaking methods. Look for opportunities that will generate good cash flow for years to come, to allow you to maintain the standard of living that you worked for years to acquire.

Last of all, begin to think like a wealthy person. Be aware of money, but also its proper place and use in our lives. It is how we handle money now that determines our financial footing down the road. Begin now to work towards the goal of financial independence and personal freedoms.

It is never too late to start cultivating a healthy attitude towards money. So don’t wait….start today.

See you at the top!

Author Bio: Darrell is the Director Of Content for Leadsbyfone LLC, a lead generation company servicing the flood clean up and water damage restoration industry.

Category: Finances
Keywords: wealth, wealthy, rich, money, fortune, saving, save, frugal, budget, earn