Money Management Tricks of the Rich

Money management tricks of the rich are actually money management tricks everyone already has at their disposal. All it takes is one, knowing what they are and two, applying them to your situation.

The first trick is something I call recognition. A person has to not only recognize they have a paycheck or some other form of income but they have to know exactly how much comes in on a regular basis.

For example, let's say you have a monthly paycheck and also receive quarterly dividends. However these dividends are deposited directly to your account. Unless you recognize their existence they only serve to raise your tax obligation.

This article isn't meant to tell you how to spend your money so I won't suggest what to do with those dividends. However I will remind you that these dividends must be recognized and used to further your financial goals.

The second trick is taking action. The rich don't just let their money sit in the bank or stocks or bonds. They make it work for them. In other words, their money is working for them while they are working for it.

No, that isn't double speak. Think about it. The rich have money because they worked for it regardless of the type of "work" they performed. The result was rewarded in money. They then put their money to work.

They repeated this cycle in something that has come to be called wash, rinse, repeat. They work for their money, get paid and take the money and put it out to work for them. You could call this a multiplying action.

The third trick is not to be afraid to spend money or invest money in or on something that will return not only your principal but a profit. Collectibles come to mind. I know a person who scours garage sales, flea markets and similar venues looking for items worth more than their asking price.

He is not afraid to spend his money on something he believes will make him more money. Mind you, he does his homework on the items in which he has an interest and doesn't buy something he knows little or nothing about.

That's the secret underlying this trick. You have to do some homework and learn the arena in which you decide to venture. After all, this only makes sense, right?

The fourth trick people with money use is to tell other people about their interests. They ask questions and make follow up inquiries. This trick puts other people's time and experience to work for them. It also allows them to stretch out their perimeter.

The fifth and final trick of the rich is to enjoy themselves. They aren't slaves to their money. They know part of money's purpose is to provide enjoyment for themselves and their families.

And they aren't shy about spreading the good around. They know they will be rewarded many times over by simply spreading around the joy money brings.

You may or may not use one or more of the tricks. But, if you think they are right for you or fit your financial style, feel free to use them all.