Key Points

it's not what you make, it's what you save that matters
always save
you will always have unplanned expenses to cover
save smart, spend smart

References

Reference_description_with_linked_URLs_______________________	Notes______________________________________________________________


https://www.rd.com/list/how-rich-people-think/	How Rich People Thnk

Key Concepts

It's Not What you Make, It's What you Save - Pay yourself first with Savings !

Poor people spend money before saving it

Rich people save money before spending it

<< a debt lawyer >> sees people with less spend well beyond their means. On the other hand, those with substantial wealth are good at leveraging their money to generate more money. “They are less concerned with amassing luxury items just for the sake of image and obtaining things than they are with money management and making their money work for them,” she explains.

many of them live on a budget, buy things cheap and practice an abundance mindset. By following their easy, everyday habits, you just may be able to get a jump-start on your own millionaire status and even retire early.

Don't be HENRY - High Income Not Rich Yet

“People confuse wealth and income. You can make a million dollars a year and be broke. We call them HENRY (high earners, not rich yet). Alternatively, you can have someone who takes almost no monthly income but has lots and lots of money. They’re two very different things.” —Dave U., business owner

Manage Smart

Use the right tools that are free

For simple taxes, online tax tools are free and good

Use free expense budget tools ( AMSGPSL budget app ) or other free budget tools

Use free investment planning tools ( AMSGPSL invest app ) or other free investment apps

Manage your life choices with the free financial health app ( AMSGPSL choices app )

Save Smart

Know your risk "fingerprint" first.

Diversify you put your savings based on risk first, then growth goals

Spend Smart

Be Frugal >> "I budget and save money by eating out only twice a month. We also don’t overspend on gifts"

spend less on cars, eating out, clothes, education, trips, purchases, paid help where possible

On vacation if you fly economy and stay in an affordable hotel you are still spending the same time in the same place for less

Starbucks coffee for $7 or Cumberland Farms coffee for $2 ??? that's $150 per month

take advantage of sales if it will save you money

if you need 10 rolls of toilet paper, don't buy 100 rolls because they are on sale - buy for what you need for the right periodi of time

Enjoy Experiences over Stuff affordably !

Buy affordable furniture, cars to take affordable trips

Invest in Yourself Smart - affordable education to help grow the right skills for better, long-term income

Debt Smart

Avoid debt where possible normally

No Credit or Bank Card Interest

Credit and Bank cards make it easy to buy something

Checkf for fees ! -There MAY be fees ( or not ) on a card purchase

Check if you can pay off the monthly card balance with ZERO fees or interest

Only use cards where you can pay off the balance completely every month with no fee or interest

Smart Long term investment debt

Long term investment debt may be good WHERE the cost of debt is less than the return on the Investment

Real estate investment is long-term

If it's an income property where you rent it

Your expected income ( Including net rents, depreciation tax benefits and more ) is clearly greater than your cost of fixed rate debt then a mortgage can be smart

Don't borrow for Investments like stocks where the returns are variable but your cost of debt is fixed

Don't borrow for long-term obligations using short-term debt that may cost more when you have to refinance

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