Four Ways How Rich People Protect Money Episode 69, LIFE LESSONS

Rich people stay rich because they protect their money and assets. Here are those four ways how they protect their money. We all can inculcate these ways in our financial planning to take care of ours too.

Hi friends and welcome to Life Lessons.

We, common people, are generally concerned about various tensions in our life. We all are mainly considered how to tackle these complications. The only other aspect that we may tend to consider is the money and the earnings of rich people in the country. we watch the news to know the updates of their earnings, new business, and strategies. In midst of this scenario, at some point, we all must have wondered how these rich people would have been managing such a huge amount of money and assets. But many of us would have never tried to know because; the next morning itself we have to run in the rat race.

In the previous episode, I tried to elucidate the importance of safeguarding the acquired assets. If you have not yet gone through it, check out the episode here. It is advisable to go through the previous episode before going through the upcoming lines.

Once we came to know the reason and importance of safeguarding our assets, the next question is defiantly how? This question is answered in this episode.

It is ok to learn from past experience, but it is advisable and efficient if we learn from people who already do it. The rich people follow four ways broadly to protect their money and assets. Let us check out those ways in detail in the coming lines.

Also, Check Out PEOPLE'S PERCEPTIONS VS REALITY here

What rich people do?

1.      Proper financial planning

The first and the foremost step was taken by rich people is proper financial planning. Before they acquire riches or asset, they plan about them in all directions. They not only analyze the pros, but also the cons behind them. This makes them easy to handle after acquiring with minimum efforts possible.

Also, Check out CAN MONEY SOLVE ALL OUR PROBLEMS? Here

2.      Plan for the care from the time they decide to own that

As depicted in the previous lines, planning is required. Planning for the care or the maintenance before acquiring is another aspect that rich people go through. For instance, before purchasing a car, a person with rich mindset plans for purchasing as well as the maintenance of it beforehand. This makes the maintenance of the vehicle simple in the upcoming days. As described in the previous episode, people buy cars to enjoy but later feel it difficult while paying back the EMIs. This is nothing but a lack of proper planning before purchasing the car. Not only in the case of liabilities, but this also lies valid for assets like houses and buildings too.

3.      Take insurances on everything possible at the right place, time, and price

Rich people seldom deal with transactions involving large sums of money.  This is the reason they always tend to opt for an appropriate insurance plan for the transaction or the asset. It is to be noted that the insurance taken at any time cannot be advantageous. Knowing to take the insurance plan that is best suitable, at the best time, and best place possible would increase the value and importance of the insurance to many folds.

4.      Avoid flaunting assets

When we observe the personality and behavior of rich people, they never show off their money and earnings. There are many reasons for it. Firstly, there is no need to flaunt the riches.

Secondly, no matter how hard had they worked for the riches, time is never in their hand. Time may turn to another side at any time. When this happens, the person would be left with nothing for the attitude he (she) showed with riches. On the other hand, there are people around us who will be waiting for us to fall; some of them even work to do that. When we flaunt our riches, these people can easily come to know where and how to attack to bring us down.

All these facts are well known by rich personalities. This is one of the reasons why they never flaunt their riches and wealth.

 Also, Check out GOLDEN RULES FOR STRONG CHARACTER Here

Some tips for common challenges after financial commitments       

After going through the four main areas where rich people make difference, we can have a clear idea where care has to be taken in our life too. Despite these postulates, the following are some tips that can help with dealing with common challenges after a financial commitment.

1.      Plan for complete Scenario

The first and the foremost thing to be remembered by everyone is that when we are getting ready for financial commitments, it is always the need of the day to touch every corner of the results from these commitments. Pros and cons both are equally important during consideration of such commitments.

2.      Be aware of the legal considerations

Though not depicted in the above postulates, the underlying secret of rich people in maintaining their riches is the knowledge of all legal considerations around them. When a rich person goes gets ready to acquire an industry, he (she) never forgets to check for legal complications around it if any. Seldom we feel that everything is going well, but legal complications if raised may turn into a severe stroke to the entire holding.

Whenever you decide to buy a house, land, or any other asset, check out is all the legal considerations are ok. If not strive to make everything clear as soon as possible. This habit makes us mutant to all the legal complications that may arise in the future. The additional point is that you always need to be aware of the changing laws from time to time.

3.      Make use of all the legal powers available without hesitating

As we own a property, we would be awarded some legal powers. It is always a bonus for us if we try to use it to the fullest.

For instance, whenever we give property on lease, we have the right to make a lease agreement which gives us powers to handle the tenant in case of any default. Many people leave off this procedure while giving a property o lease, this habit may create unwanted complexities in the future.

 Also, Check out HOW SUCCESSFUL PEOPLE OVERCOME THEIR WEAKNESSES? Here

4.      It’s ok to be overprotective sometimes.

Some people are overprotective towards their assets. A person I know purchased a small piece of agricultural land. As soon as he purchased it, he spent some additional amount to fence the land. Since It was a small piece of agricultural land, it was not at all prone to occupation by the neighbors. But he was not ready to take chance. He spent an additional amount to make the fencing.  It is nothing wrong with what he did. He was overprotective. It is ok to be overprotective at times, the only matter to consider is the additional money spent on the land that wouldn’t give any returns.

 

Bottom line

Safeguarding our assets is always the need of the day. But the answer to 'how' is probably answered in this episode. Rich people are professional rich handlers; this is the reason why they manage to stay rich. The common man should learn from them to make their riches stay. These tips have helped me a lot with various commitments. I expect these would help you all too.

Hope you like this Episode.          

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