Successful money management can result from simple actions. A major difference between the rich and the poor is their habits and attitudes toward money. Increased financial literacy and changed behaviors can result in increased prosperity. A transformed financial future can result from these actions:
- Believe you can control many aspects of your life rather than viewing yourself as a victim of circumstances.
- Create goals to clearly maintain your focus and an action plan to build wealth.
- Focus on opportunities looking for new ways to create value and grow wealth rather than being preoccupied with problems and barriers.
- Avoid jealousy; learn from those who have already achieved wealth.
- Emphasize cash-flow assets; acquire investments that generate income to build lasting wealth.
- Commit to an increasing net worth and a positive cash flow.
- Continue to learn since knowledge is power; seek to expand an understanding of finances, investments, and business.
In addition, people who are successful in managing their finances avoid spending money on these things:
- bank fees
- credit card interest
- lottery tickets and other gambling
- late fees
- extended warranties
- designer label clothing
- impulse purchases
- video games, televisions
- prepaid cash cards with various fees
For additional information on the money habits of rich and poor people, go to:
Teaching Suggestions
- Have students interview a family member or another person to determine recommended actions for successful money management.
- Have students create a visual proposal (poster, slide presentation, or video) with actions a person might take for reduced spending and for an improved financial situation.
Discussion Questions
- Which attitude or behavior discussed in the article do you believe could make a difference in the financial life of most people?
- Describe actions a person might take to change attitudes and behaviors that could result in an improved financial situation.
Melissa Hart
Focus on Personal Finance, 2024 Release 