There is a difference between being “rich” and being “rich.”
Everything is in the mindset. It’s the difference between the Rockefellers and Kid Rock.
If you are rich, you have the money to buy whatever you want, right now. Do you want a jet ski? You are rich, go buy one, knock yourself out.
However, if you are rich, it means that you are building something sustainable that should last for generations. Rich people know how to keep their money and make more money, and how to make their money work for them.
Here are five ways to learn to be rich:
1. Wealthy people invest
Investing is the way to generate generational wealth. If you feel like you don’t have enough money to start investing, you are not alone. But guess that? You really don’t need that much, and you can even get free shares (worth up to $ 200!) If you know where to look.
Whether you have $ 5, $ 100, or $ 800 to spare, you can start investing with Robinhood.
Yes, you’ve probably heard of Robinhood. Both beginners and investing professionals love it because it does not charge fees and you can buy and sell stocks for free, with no limits. In addition, it is very easy to use.
What is the best? When you download the app and fund your account (it doesn’t take more than a few minutes), Robinhood deposits a portion of the free shares into your account. It’s random though, so the stock could be worth between $ 2.50 and $ 200, a nice boost to help you build your investments.
2. Pass on wealth to the next generation
Here’s another way to pass wealth on to the next generation.
Have you thought about how your family would manage without your income after you left? How will they pay the bills? Send the children to school? Now is a good time to start planning for the future by looking at a term life insurance policy.
You’re probably thinking: I don’t have time or money for that. But your application can take minutes and could leave your family up to $ 1 million with a company called Bestow.
Rates start at just $ 16 a month. The peace of mind of knowing that your family is well cared for is priceless.
If you are under 54 and want to get a quick life insurance quote without a medical exam or even getting off the couch, get a free quote from Bestow.
3. Protect your wealth – the smart way
You are probably wasting money right now. And it’s probably something you’d never expect – your homeowners insurance policy.
This is not something you actively think about, you just know you have to have it.
The problem is, you are paying too much. Fortunately, an insurance company called Policygenius makes it easy to find out how much you are overpaying. Find cheaper policies and special discounts in minutes.
In fact, it saves users an average of $ 690 a year, or $ 57.50 a month. It will even help you break away from your old insurance company. (You can cancel your policy at any time and your company must issue a refund.)
And just because you’re saving money doesn’t mean you’re skimping on coverage. Policygenius will make sure you have what you need.
Just answer a few questions about your home to see how much money you are wasting.
4. Add up to 300 points to your credit score
When it comes to your credit score, it’s important to stay organized and in control. After all, it will play an essential role in any great purchase you want to make, be it a house or a car.
So if you are looking to get your credit score back, or even if you are on the right track and want to increase it, try using a free website called Credit Sesame.
In two minutes, you’ll have access to your credit score, any accounts that are in debt, and a handful of personalized tips to improve your score. You will even be able to catch any errors that stop you (one in five reports has one).
Do you want to see for yourself? It’s free and it only takes about 90 seconds to sign up.
5. Grow your money 16 times faster, without risking it
You’ve probably heard that the best way to grow your money is to save it in a savings account and leave it there for, well, forever. That is bad advice.
But maybe you are just looking for a place to store it safely, but still make money. Under your mattress or in a safe you will get nothing. And a typical savings account won’t do you much better. (Ahem, 0.06% is nothing these days).
But a debit card called Aspiration allows you to earn up to 5% cash back and up to 16 times the average interest on the money in your account.
It’s not bad at all!
Enter your email address here for a free Aspiration Spend and Save account. After confirming your email, securely link your bank account so they can start helping you earn extra money. Their money is FDIC insured and they use military grade encryption which is nerdy language because “this is totally safe.”
Being rich is great. But don’t just be rich.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He is neither rich nor rich, but he is working on it.