Awful Financial Habits Of The Super Rich

Julie Lord
 


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Awful Financial Habits Of The Super Rich

The super rich clearly have some good financial skills, but they also have some pretty awful financial habits as well. Here we look at those bad habits and how we can learn from them.

Many people aspire to be rich, wondering how they can amass a fortune so great that they can access the best services, products and places on the planet, and perhaps even off the planet too. The super rich are great at making money, but some can be guilty of making financial mistakes, pretty big ones actually. In some cases, mistakes can even form into bad habits, which none of us should aspire to replicate. Here are some prime examples:

Big, Pointless, Expensive Expenditures

We hear all too often about billionaires spending money on stupid things like gold Ferraris, gold plated jets, massive trust funds for animals, and diamond encrusted trainers. Sheikh Hamad Bin Hamdan Al Nahyan topped silly spends lists when he not only bought a private island, but had workers create the letters of his name in kilometre high masterpieces. The letters are so large they might even be visible from space. These purchases might seem like one-off indulgences, but when any person with a huge amount of money continues to make these same crazy purchases, something has to give and fortunes can decrease quickly. True money-wise rich people know that impulse buys are a bad idea and know the difference between need and want.

Taking Their Eye Off Their Finances

The most successful money makers know where every single bit of cash is going or coming from. If you look in detail at the accounts of a successful, usually self made millionaire you will see they are controlling their finances well but plenty of rich people don't keep a close watch on their cash and pay bills late, get charged on credit cards or anything else that requires fees, and let money drip out of their accounts needlessly.

Buying Properties They Don't Use

This could be multiple properties around the world that are there ‘just in case’ they need a home-from-home in a particular country, but these properties are often ones on which money is being wasted needlessly particularly if the owner is taking out a loan to buy each one, with all the associated fees and interest payments. Any smart super rich person would not allow money to be stagnant or costing money when it could be growing and generating a profit.

Avoiding Being Frugal

Being frugal is seen as some as ‘being mean’ or being unnecessarily precious about money, when you seemingly have a ton of it. However, being frugal is commonly what got many millionaires to where they are today. Yet once wealthy they avoid being frugal and always spend more than necessary – undoing all the good work done when amassing their fortune.

Paying For VIP Treatment

VIP treatment is something that is necessary for some, especially when it comes to security and privacy. However, certain VIP experiences, like private club areas with champagne on tap are costly and usually much more costly than they need to be. Clients can be charged the original price of a drink multiple times over, as well as other miscellaneous ‘VIP’ costs. It can be a real buzz getting treated like a VIP, but constantly paying for the privilege when costs of normal products are hiked just because you're in a VIP area, can be a bad financial mistake.

After reading this, you might not feel so bad about spending a few pounds on an impulse buy, but it is worth remembering that good financial habits will stand you in good stead no matter how much you have in the bank now and in the future.

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