Yahoo Finance The Money Guy Show: Financial Hacks and Tips of the Top 1% Rich Earners
In 2023, The Money Guy Show hosts Brian Preston and Bo Hanson looked at the financial hacks and tips of the top 1%. The episode looked through income levels and wealth for different age groups. If you want to reach the top 1% — or just get some guidance on your wealth-building journey — here’s a breakdown of the tips they shared.
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Delayed Gratification Is Crucial
As easy as it is to spend money today, it’s essential that you learn how to delay gratification so that you can save for the future. Delayed gratification is important when you’re young and new in your investing journey, because you want to ensure that you’re building for the future.
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A High Income Is Important
The hosts shared the importance of a high income to have a high savings rate, since you can only rely on frugality tactics to a certain level. The top rich earners focus on increasing their incomes so that they have more money to allocate towards investing.
Keep Living Expenses Low When Possible
Early in your career, you want to live as lean as possible by reducing your living expenses. If you want to build wealth when you’re still young, you have to focus on reducing your largest expense so that you have the funds to invest.
You don’t want to live a lavish lifestyle that you can’t afford too early in your life, because this will prevent you from building wealth.
Choosing the Right Partner Matters
The hosts stress that you should spend time and effort choosing the right partner, because the harsh reality is that a divorce can be a crippling financial situation. You also want to ensure that your partner shares similar money-related goals so that you’re on the same page.
You Want To Enjoy What You Do for a Living
The hosts discussed how 86% of millionaires enjoy what they do for a living. If you can channel your passion into a successful business, you can likely create a lucrative income stream.
They said that money tends to follow those who pursue a vocation that they’re passionate about.
They Have a Great Team Around Them
The top 1% surround themselves with the best possible team, from their friends to the accountant that they use. You want to get the right people around you so that those in your social — and financial — circle don’t bring you down.
They Don’t Rely on One Income Stream
Those who have achieved financial success often have multiple sources of income instead of relying on one source. Getting paid in multiple ways opens up many options for growing your savings account.
It’s crucial that you don’t rely on your main job as your only income source.
They Maintain Liquidity
High earners will likely maintain liquidity so that they can be in a position to make some financial movies when the occasion calls for it. They keep some cash on hand to take advantage of possible opportunities.
They Understand Investments
You’ll want to learn about investments and wealth-building strategies so that you can invest wisely. You should get involved in your money so that you know what’s happening.
This is why you’ll want to take some time to research retirement planning options, tax strategies and investing.
They Help Others Achieve Success
The wealthy will help others out through coaching and mentoring. They’re not concerned about sharing knowledge, and they do what they can to give back.
Prioritizing Health Matters
Rich people tend to invest in their health, because there’s a strong connection between your financial and physical state.
It’s crucial that you spend money on your health when you’re young to enjoy your future wealth. You don’t want to get so caught up in building for the future that you don’t get to enjoy the results.
They Don’t Waste Money Trying To Impress Others
Spending frivolously to impress others is an easy way to blow through your savings. The hosts mentioned that some of the richest people look poorer as their wealth grows, because they don’t worry about what others will think about them.
When you spend money to keep up with others, you take away from your future self.
Their Money Works Harder Than Them
This wealth hack is common for those in their 50s, who have accumulated money for decades: You want to reach the point where your dollars can replace you in generating income.
This next level is where your money works for you as you invest in real estate, stocks and other assets. The goal is to invest in assets that provide you with a steady income, so you no longer have to work as hard.
Closing Thoughts
Various tips can help you as you focus on building wealth, and it’s important that you look into different advice that can help you, based on the stage you’re at. As intimidating as it can be to start building wealth, it’s worth noting that many rich people began at similar levels as you. Listening to podcasts and consuming other educational financial content is a good way to learn about your finances and build confidence.
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This article originally appeared on GOBankingRates.com: The Money Guy Show: Financial Hacks and Tips of the Top 1% Rich Earners
