We all know that 1 percenters earn their money through a variety of sources, but the simple fact is that most of the richest people in the world, started building their wealth by learning how to save money.
In order to invest money to help build your wealth, you first need to have some money saved up to invest. The best way to get that investment nest egg by saving some of your salary every two weeks.
However, there seems to be some differences in the way the wealthy and the soon to become wealthy and the normal average person saves. If you want to become a 1 percenter, then copying the ways the rich save can help you to reach that goal.
Make Savings A Priority
Your average person or family, collects their paycheck, pays their bills, shops for groceries, and then puts any left over money in their savings account. While they may plan a budget and try and include savings in the budget, their savings is normally incidental rather than a priority.
On the other hand people who will some day become 1 percenters make savings a priority. They usually spend more time on their budget and especially spend time finding ways to put more of their money into savings. In some cases, their savings is the first thing that comes out of their paycheck.
Making Their Savings Work For Them
Another thing soon to be 1 percenters do is they find ways to make their savings work for them. One way of doing that is by putting some of your savings in CD accounts. CDs make higher interest rates than simple savings accounts do and are fully FDIC insured so there’s no risk of losing your hard earned money.
Letting the accounts mature and then reinvesting the money and interest into another CD account builds income faster which means you will have more money sooner to invest in more risky and diversified endeavors.
Savings Alone Won’t Make You Rich
While most 1 percenters start building their wealth through a savings account and keep adding to their savings even when they make it big, they don’t depend on those savings alone to make their wealthy.
One percenters learn how to invest some of their savings and learn how to take acceptable risks (such as stocks or real estate) to help build their wealth. While they know that those saving accounts is the first step in attaining wealth they understand that savings alone won’t allow them to reach their goal of becoming a wealthy 1 percenter.