What do you think of when you hear the word “rich”?

Yachts? Evening gowns? Travel?

That’s true to an extent, but not all rich people live that way. For this argument, we’ll define “rich” as having an excess of money, and “lavish” as obscenely using moolah like those in Hollywood.

Those who are rich, especially the self-made rich, are a different breed than most people. They do things differently. They live differently. They think differently. These differences get them where they are.

Without these actions (or inheritance from your great uncle Earl), you’ll simply stay a reader, passive without action.

Let’s read and incorporate:

Financial Habits of the Rich (And How to Develop Them)

1. Build up cash by saving it.
Yes, the rich save their cash. Rather than eating out all the time, they tuck those dollars into stock mutual funds that pay dividends. According to Jean Chatzky in The Difference, 55% of the self-made rich got there by saving.

Take action: Where are you spending that you don’t NEED to? Be honest. Write it down. Get serious about finding cheaper alternatives. If you shop at Starbucks every morning, stop. Invest in a Keurig and drop the money you would have spent into a savings account. When you’ve built it up a bit, invest it in a stock mutual fund and watch it grow.

2. Don’t pay for what you don’t need.
In other words, stop trying to outdo the Joneses and stay within your budget for things like your house and car. If you pay $1,000 a month for an SUV that’s drinking dollars each week, pare down. Do you really…

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