One of the lesser-known money-management tips is to act broke to stay rich. This is something billionaires aren’t telling you, but it works flawlessly.
Just think about it, rich people stay rich by living like they’re broke. Although this doesn’t apply to every rich person, it does make sense in more than one way.
That’s why we will tell you several ways to act broke to stay rich. But before that, why should you act broke to stay rich?
Why Should You Act Broke to Stay Rich?
To explain why everyone should try this money-management tip, we must outline the benefits. No benefit of this tip more perfectly encapsulates the meaning than Keanu Reeves.
Namely, there’s a reason why everyone’s favorite actor doesn’t show off his wealth. As a matter of fact, Keanu Reeves doesn’t even own mansions, expensive cars, or jets.
He lives a simple life. Some even say he lives a broke life. After all, we’ve seen numerous examples of Reeves’ lifestyle. Not only does he ride the bus, but he lives an extremely frugal lifestyle.
So what could be the benefits of acting broke to stay rich? Here are a few:
- It Keeps You Focused
Not everyone is comfortable grinding their way to wealth. That’s what separates wealthy people from others. Unless you’ve been born into wealth, you either need to find that next big thing or grind your way to wealth.
But what happens once you get there? Do you start flashing your cash and living like a king, or do you tone it down and don’t lose focus on what’s important? There is no wrong answer here, but we can make a case for the latter.
Namely, acting like you’re broke puts your entire focus on making more money. After all, you have to work more to make more. So by acting like you’re broke, you’re putting yourself in the grind mindset.
- It Keeps You Thinking
When you’re broke, you think about ways to make money. But if you’re rich, your money problems go away. By this logic, rich people choose purposely to act broke to keep them thinking about how to be rich.
Again, this way of thinking puts rich people in the grind mindset. But instead of focusing on the objective, you also think about ways to get there. Being “focused” and “thinking” are two separate things, but they get you to the final destination nonetheless.
- It Keeps Your Money Safe
The easiest way to go broke is to spend your money. But if you’re rich and act like you’re broke, you put your money away and keep them safe. That way, the risk of spending all of your money and going broke doesn’t exist.
Think about it, if you don’t spend any of your money, could you lose your wealth?
How to Act Broke to Stay Rich?
Now to the fun part. Let’s explore the ways to act broke to stay rich.
Don’t Spend Needlessly
Needless spending puts you on a one-way train to “broke town.” Plenty of people start spending needlessly once they acquire wealth. But these people don’t understand that every well can go dry.
Our first way or tip to act broke to stay rich is to stop spending your money on things you don’t need.
Put Your Money Away
Acting broke to stay rich is a money-management tip. And what better way to accomplish your goal than to put your money away? That doesn’t mean putting your money in a savings account. You could invest it in real estate, buy shares, precious metals, commodities, etc. The point is to put your money away so you don’t have much to spend.
Allocate enough money to live a modest life and a life free of financial headaches.
Don’t Bring Attention
If there is one thing that every “act broke to stay rich” person does is keep a low profile. Some rich people don’t want the attention the green dollars bring. They want to live a good life and don’t want 10 ft walls around their three-story mansion. Doing this has the opposite effect of acting broke to stay rich. After all, the whole point is to paint a facade around the fact that you have money but choose not to show it to anyone.
That concludes this guide on ways to act broke to stay rich. If there is one thing that we can take from this lifestyle is that people choose to do it. They don’t want others to know about their wealth and decide the best way to hide it is by acting broke.
So let us ask this one question, do you think everyone should act like they’re broke if it helps them to stay rich?