How to spend your money like a rich person

Most people think that having a lot of money makes you wealthy. But what if I told you that it is how you spend your money that makes you poor, middle class, or rich? It goes against everything that we are taught about money. However, if you think about people who win the lottery or fall some other way into a large lump sum of money. They are back at the level financially they were before they won the money in just a few years. Why? Because they don'™t know how to keep the money and make more money with it. They spend it without knowing how to replace it without a job.

Spending like the poor

The poor have their money come from an outside source like a job. Now it doesn't matter at the beginning of your journey where you get your money, but where it goes. Poor people don't like debt. Their money comes in and it goes right out. They pay cash for everything, and stay out of debt. If they get more money as a bonus or present, which is when they go and buy the nicer TV, the newest phone that is out at the time, etc.

Spending like the middle class

Middle class spending is getting into debt, bad debt. They have their money come from an outside source, and they have the mortgage payment, credit card payment, car payment, etc. When they get a bonus or a raise then they move into the bigger house, buy the faster car. Their money comes in and goes out to all the debt payments that they have accumulated.

Spending like the rich

Rich spending is different. They get their money from their investments, and that money goes for their toys, payments, etc. If they want they the new car, but want to maintain their wealth and not spend their money. What they would do is find an investment that can pay for their want. For example, you can save up let'™s say $2,000. Now you can go buy a the car that you want, (poor spending, the money comes in and goes out) or you can buy it with payments, (middle class) or you can go buy something that will make you money, (an investment, rich spending) and then that investment gives you money to pay the payments of your car. You will then have the car and after it's paid off you will still have the money producing investment that will give you money every month.

You can change how you spend your money

When I first started learning about the different ways to spend your money I spent my money like a poor person. I didn'™t have anything in my name or bills, my money came in and it went out. Then I saved up enough and got a secured credit card to build my credit and I went to the jewelry store as well. I bought things with the credit card that would help me with my business, (laptop, wireless router) and paid the payments every month. (Middle class spending). While I was spending like a middle class I saved up enough money to start a loan process where I could borrow money to spend on cash producing investments. I did that so I could start building my passive income , and would not have to work all my life for earned income. So you can very well change how you spend your money and move up the ladder to start spending like a rich person. One of the first steps though is to recognize where you are right now so you can determine where you want to go.