This article was reviewed by Chris Singer, CFP®.
Over the years, I’ve had numerous opportunities to observe certain common behaviours of many of our wealthier clients. The good news is these habits are ones that anyone can easily adopt. I’m not promising that doing these things will make you wealthy, but they certainly won’t hurt!
It basically boils down to one simple thing…a mindset that prioritizes saving over spending.
For example, most of our wealthier clients don’t drive a luxury car, nor do they buy a new car every couple of years. But it’s not just cars that eat up available cash quickly.
Do you always need the latest and greatest version of smart phone, watch or other technology? Add it all up and you’ll realize those new “toys” cost quite a bit and, as we all know, they don’t hold their value for very long either. Our wealthiest clients tend to not spend money on gadgets and technology unless absolutely necessary. They have learned the value of delayed gratification.
Finally, the majority of our wealthiest clients still live in the same house they bought 20+ years ago. Frequently moving up the property ladder incurs hidden fees and other charges people often neglect to factor in, such as legal fees, property purchase taxes, realtor commissions, movers, etc.. Simply staying put in the same house for a long time can save you a lot of money.
Hopefully this has provided some food for thought. I would also encourage you to consider your own everyday behaviours regarding money. Do you prioritize saving…or spending?
Additional Readings: Retirement Planning in Canada: A Complete Guide