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This is what rich people know about money that you don’t

3 1 0
21.02.2019

One thing people get wrong about wealthy people, according to Manisha Thakor, is assuming they don’t fret about their bank accounts. “I see people with $10 million, and they can tell you exactly how much they’re saving each month,” says Thakor, VP of financial education at wealth management firm Brighton Jones. “I think it’s a huge misconception that people who are wealthy are not paying attention to how much they’re saving and spending.”

For people who didn’t inherit wealth, saving money can be key to making money. “My observation is the savviest people are the ones who made their money themselves,” Thakor says. These are some things rich (and richer) folks know about saving and making money–lessons you can try to apply to your own financial life.

People with money tend to be careful about opening credit cards, usually opting for one primary card and one backup option, and largely using credit over debit for increased fraud protection. (If they run their own business, however, chances are they keep personal and business expenses separate by using different cards.) “Most wealthy individuals carry fewer credit cards than the average American,” Thakor says. They rarely get suckered into opening store credit cards. “They know that store credit cards have higher than normal interest rates to begin with and exceptionally high penalty rates,” Thakor adds.

It’s also important to choose the right credit cards, even if it means........

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