Rich people are not always necessarily born rich. When distinguishing between the rich and the poor, most people tend to focus on the outward appearance and decide between wealthy and needy. For example, an expensive clothing brand indicates wealth and prosperity, but a simply clad man may not gather a second look. Here’s a major contradiction to prove you wrong:
The biggest difference between the rich and the poor is that poor people spend money, whereas the rich INVEST. Poor people are often eager to spend money on the latest fashion and trends, without understanding it from a financial investment point of view. This nearsightedness leaves them poor because all their decisions are only to amplify their instant gratification.
While rich people may not give in to latest trends or spend heavily on clothing, there are some things rich people do not save money on, because it is considered as a long term investment. Here’s 4 things that you must consider investing, that can save you a fortune in the long run:
1. COFFEE MAKER
You love coffee and can’t start your day without your favorite freshly brewed coffee to activate those brain cells. It is easier for you to just walk in to the nearest cafe and grab your hot drink. While 64% of U.S. adults drink coffee everyday, the average spend per day on a cup of java is $3. This amount may seem meager, but the annual spend on coffee becomes an astounding $1100!
Invest in a good coffee maker which will cost you no more than $250 and you could save hundreds of dollars each year with a simple investment. Money Saved is Money Earned!
2. INDUCTION STOVE
Do you know that boiling water is quicker in Paris compared to New York? No, Paris does not produce extra heat, and you certainly do not need to move to Paris to cook your food faster! The answer lies in the technology of induction cooktop. By simply looking at the efficiency numbers we can gauge why you must consider investing in an induction stove. Gas stoves are the least effective offering only 40% efficiency whereas electric stoves are only 70% efficient. On the other hand induction stoves offer a 90% energy efficient technology, with only price being the downside.
Saving energy equals saving on electricity bills! Induction stoves not only offer a safe, controlled, easy to clean and energy efficient technology but also help in saving the environment. What’s better than saving the environment while saving money?
3. LED BULBS
Due to the high cost associated with LED light bulbs, they are still deemed unpopular. However, an LED light bulb consumes 10 times less electricity than a regular light bulb, and offers a service period up to 25000 hours as compared to only 10000 hours. This makes it 7 times more economical! Did you just realize how silly you have been all this time to choose those cheap incandescent bulbs all along?
And the last and most important one…
Books may be an unexpected entry on this list, but they are crucial. While reading is increasingly becoming old fashioned, it is critical to your growth and well being. Reading inspires new ideas and if you ever listen to interviews of the most successful people, the one single common habit they all have is – they all read!
Books can sometimes be expensive, but they are an investment. However, you don’t have to purchase every book you wish to read. Find alternative ways, join a public library, borrow from a friend or colleague, sign up for free e-books, but READ! If you need a starting point, Bill Gates posts his favorite books twice a year and you can view his list here. You may not save money with this purchase, but you will certainly find ways to earn more of it.
Delayed gratification and a farsighted outlook are the key qualities that separate the rich from the poor. Be analytical of your daily purchases and keep striving to save that last penny to meet your financial goals. While saving money is the first step, investing is the second step which you may wish to read about here.
“ The world’s heaviest weight one carries, is that of an empty pocket ”
– The Frugal Investor
Be Frugal, Be Smart, Be Rich!