Rich people focus on saving while poor people concentrate on spending
No matter how small or big your earning is, saving is a crucial part of becoming rich. If you try to save even ten dollars a day, that means 3,650 dollars a year and 36, 500 in ten years. Well that is even less the interest you get from the bank. Even if you earn 100,000 dollars a month but you also spend the whole amount, you will never get rich until your death.
⇒ Saving versus Spending
Poor people usually spend more than what they earn. They do not believe in the value of savings. They earn 100 dollars and spend 110 dollars. In time, the excess expenditure piles up and before they know it, they are drowning in debt.
Rich people stays on a monthly and even daily budget. They spend only within their declared budget. They save a portion of their earning in the bank to earn further interest.
⇒ Debit Card versus Credit Card
Poor people rely on credit cards. They cannot live without them. They dine out, shop and indulge to vacations using their plastic cards. Because they do not see the expenses and their cash remains intact, they feel that they are in complete control of their finances. Only to find out later on that everything is getting out of control.
Rich people do not purchase with credit cards. If they do not have cash, they use debit cards. They believe in the saying, “if you cannot afford it cash, you really cannot afford it”.
⇒ Cautious versus Impulsive
Poor people are impulsive buyers. They buy anything on sale and anything discounted. Even if they do not need the items, they keep on buying thinking that they can save from the discounts.
Rich people think about the product many times before purchasing. They consider the affordability, quality and the usefulness of the item. When the item fails one of the criteria, they think about it repeatedly before finally deciding.
Earning money is hard. Because of the difficulty earning it, think twice or even thrice before you let go of your hard-earned income. No one knows the future, it is therefore important to save to ensure that you have something in case of drought.