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Not So Secret Habits That Rich People Live By 

 

Have you ever wondered how the other half lives? Of course, you have—that’s why reality shows like Keeping Up with the Kardashians are so popular. 

When it comes to the lifestyles of the wealthy, we are all curious. It’s not only about what Kim K is eating for lunch; let’s be real.

We want to know the habits rich people live by and how we can apply them to our lives.

desk, computer, notepad, pen

In this post, we are sharing 7 not-so-secret habits rich people live by and how we can add these habits to our lives.

Habit #1: Cash Flow Awareness:

Rich people keep close tabs on every dollar they make and spend, tracking every penny carefully. This is called cash flow management and is essential to understanding your financial situation.

How can you expect your financial condition to change if you have no idea where your money is going and how it’s flowing?

I encourage you to use the Finesse Formula Budget Template if you haven’t started utilizing any kind of budgeting tool yet.

This Budget Template gives you a crystal clear picture of your financial situation as well as a path to reach your unique financial goals.

This tool is meant to empower you, whether your goal is to pay off high-interest debt, save for a big purchase, or find ways to put more money into investments. It’s about designing a personalized financial plan that fits your specific lifestyle and goals.

Habit #2: They Welcome Risk

The dazzling image of the rich that you see in movies is not at all like the real one. Instead, you see them casually overspending on fleets of yachts, and making expensive bets on the golf course.

Millionaires understand the real value of every dollar and are devoted savers. They are careful spenders and stay clear of wasting money on things that don’t improve their lives.

True wealthy individuals may remain unknown despite having accumulated substantial money because they do not flaunt their wealth or have extravagant habits. 

Habit #3: Continuous Learning

The habit of reading is one thing that many successful individuals have in common. One’s decision-making skills and information base both grow when they read books. Explore my top financial books, which helped me see money differently.

Regularly increasing your financial literacy is essential since it provides an ongoing avenue for learning about effective wealth-building strategies.

The secret to financial success is lifelong learning.

Habit #4: Investing for Income

Wealthy individuals know how important it is to have their money work for them. They put their money into investments that yield steady income, like stocks, real estate, and companies with consistent sales. 

The secret to an abundant financial future is to diversify your sources of income.

“How much do I need, and what should I invest in?”

It’s not required to invest an enormous amount of money. It’s a myth, if you’ve ever heard that.

You can start investing with $50.

If you want to invest in the stock market, ETFs are a great option. By combining a variety of stocks, bonds, and other assets into one fund, they provide diversification.

By putting a variety of stocks, bonds, and other assets into one fund, they offer diversification. They provide opportunities in a variety of industries and are cheap and easy to trade.

Buying individual stocks from reputable companies might provide profitable investments. Look out for companies with an edge over the competition, solid financials, and steady growth. Researching is crucial when looking to purchase any company. 

An index fund, like the S&P 500, tracks a particular market index. These passive investments are a cheap way to get wide market exposure because they mimic the performance of the index they track.

Habit #5: Valuing Time

Time is our most precious resource, and if you start to value it that way, everything changes.

Make the most of your time by prioritizing work, creating clear goals, and removing time-consuming things. Effective time management enables you to focus on tasks that enhance personal and financial growth.

Priority number 1: Be stingy with your time.

Priority number 2: Be stingy with your money.

Because there is a connection between money and time, it is that simple

Habit #6: Prioritizing Health:

Establish health as a main priority.

Success relies on sustaining both your physical and mental well-being. It’s not just about working out; it’s also about developing creativity, a mental muscle that can produce unexpected outcomes when used.

Rich people routinely include exercise as a core part of their everyday plans.

Why?

Because it has a major impact on how you feel in along with improving your physical health. Frequent exercise raises your energy levels, improves your brain clarity, and makes you feel more productive.

The mind is a muscle that you can work out just like any other muscle in your body. By using your creative side, you may come up with new solutions to problems and unique ideas. It’s a win-win.

The more you use this creative muscle, the more it may improve your life and even have a favorable influence on your money decisions. 

Habit #7: The Priceless Mindset

Wealthy people have a shared belief in having a priceless mindset. They know their worth.

Develop an attitude of self-worth, and you’ll be more capable of overcoming obstacles and taking advantage of opportunities.

You can set yourself on the path to financial prosperity by incorporating these habits into your life.

Habits, like tracking your cash flow, investing in passive income streams, and taking logical risks, can help you grow your wealth and reach your financial goals.

Remember that you can become financially free if you have the right tools and mindset.

So why wait?

Learn how to cultivate a mindset that drives success

This post was all about 7 habits rich people live by and how we can add these habits to our lives.​

The content on this blog is not intended to be a substitute for professional financial advice. Always seek the advice of a qualified financial professional regarding your financial situation or investment decisions.

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Not So Secret Habits That Rich People Live By 

This site contains affiliate links, view the disclosure for more information.

Habits the wealthy live by

 

Have you ever wondered how the other half lives? Of course, you have—that’s why reality shows like Keeping Up with the Kardashians are so popular. 

When it comes to the lifestyles of the wealthy, we are all curious. It’s not only about what Kim K is eating for lunch; let’s be real.

We want to know the habits rich people live by and how we can apply them to our lives.

desk, computer, notepad, pen

In this post, we are sharing 7 not-so-secret habits rich people live by and how we can add these habits to our lives.

Habit #1: Cash Flow Awareness:

Rich people keep close tabs on every dollar they make and spend, tracking every penny carefully. This is called cash flow management and is essential to understanding your financial situation.

How can you expect your financial condition to change if you have no idea where your money is going and how it’s flowing?

I encourage you to use the Finesse Formula Budget Template if you haven’t started utilizing any kind of budgeting tool yet.

This Budget Template gives you a crystal clear picture of your financial situation as well as a path to reach your unique financial goals.

This tool is meant to empower you, whether your goal is to pay off high-interest debt, save for a big purchase, or find ways to put more money into investments. It’s about designing a personalized financial plan that fits your specific lifestyle and goals.

Habit #2: They Welcome Risk

The dazzling image of the rich that you see in movies is not at all like the real one. Instead, you see them casually overspending on fleets of yachts, and making expensive bets on the golf course.

Millionaires understand the real value of every dollar and are devoted savers. They are careful spenders and stay clear of wasting money on things that don’t improve their lives.

True wealthy individuals may remain unknown despite having accumulated substantial money because they do not flaunt their wealth or have extravagant habits. 

Habit #3: Continuous Learning

The habit of reading is one thing that many successful individuals have in common. One’s decision-making skills and information base both grow when they read books. Explore my top financial books, which helped me see money differently.

Regularly increasing your financial literacy is essential since it provides an ongoing avenue for learning about effective wealth-building strategies.

The secret to financial success is lifelong learning.

Habit #4: Investing for Income

Wealthy individuals know how important it is to have their money work for them. They put their money into investments that yield steady income, like stocks, real estate, and companies with consistent sales. 

The secret to an abundant financial future is to diversify your sources of income.

“How much do I need, and what should I invest in?”

It’s not required to invest an enormous amount of money. It’s a myth, if you’ve ever heard that.

You can start investing with $50.

If you want to invest in the stock market, ETFs are a great option. By combining a variety of stocks, bonds, and other assets into one fund, they provide diversification.

By putting a variety of stocks, bonds, and other assets into one fund, they offer diversification. They provide opportunities in a variety of industries and are cheap and easy to trade.

Buying individual stocks from reputable companies might provide profitable investments. Look out for companies with an edge over the competition, solid financials, and steady growth. Researching is crucial when looking to purchase any company. 

An index fund, like the S&P 500, tracks a particular market index. These passive investments are a cheap way to get wide market exposure because they mimic the performance of the index they track.

Habit #5: Valuing Time

Time is our most precious resource, and if you start to value it that way, everything changes.

Make the most of your time by prioritizing work, creating clear goals, and removing time-consuming things. Effective time management enables you to focus on tasks that enhance personal and financial growth.

Priority number 1: Be stingy with your time.

Priority number 2: Be stingy with your money.

Because there is a connection between money and time, it is that simple

Habit #6: Prioritizing Health:

Establish health as a main priority.

Success relies on sustaining both your physical and mental well-being. It’s not just about working out; it’s also about developing creativity, a mental muscle that can produce unexpected outcomes when used.

Rich people routinely include exercise as a core part of their everyday plans.

Why?

Because it has a major impact on how you feel in along with improving your physical health. Frequent exercise raises your energy levels, improves your brain clarity, and makes you feel more productive.

The mind is a muscle that you can work out just like any other muscle in your body. By using your creative side, you may come up with new solutions to problems and unique ideas. It’s a win-win.

The more you use this creative muscle, the more it may improve your life and even have a favorable influence on your money decisions. 

Habit #7: The Priceless Mindset

Wealthy people have a shared belief in having a priceless mindset. They know their worth.

Develop an attitude of self-worth, and you’ll be more capable of overcoming obstacles and taking advantage of opportunities.

You can set yourself on the path to financial prosperity by incorporating these habits into your life.

Habits, like tracking your cash flow, investing in passive income streams, and taking logical risks, can help you grow your wealth and reach your financial goals.

Remember that you can become financially free if you have the right tools and mindset.

So why wait?

Learn how to cultivate a mindset that drives success

This post was all about 7 habits rich people live by and how we can add these habits to our lives.​

The content on this blog is not intended to be a substitute for professional financial advice. Always seek the advice of a qualified financial professional regarding your financial situation or investment decisions.

Filing Taxes for the First Time? Here’s Everything You Need To Know

Are you in a bind because you’ve never filed a tax return before? And to top it off, you just learned that you’ll need to file one this year? April 15th:

This site contains affiliate links, view the disclosure for more information.

filing your taxes
Are you in a bind because you’ve never filed a tax return before? And to top it off, you just learned that you’ll need to file one this year?
 
April 15th: Tax Day always falls on that date, unless April 15 falls on a weekend or holiday. 
 
If you are filing your taxes for the first time, we have everything you need to know. And yes, we will be sharing how to file your taxes for free (or at a super low cost).

In this post, we are sharing everything you need to know if you are filing taxes for the first time.

A BEGINNERS GUIDE TO FILING TAXES

Essential tips for all you first-time filers out there ⬇️

Figure Out If You Have to File a Tax Return

To determine if you need to file a tax return, there are a few key factors to consider. 
 
In general, if your gross income in 2023 was at least $13,850, you’ll likely need to file a tax return in 2024.
 
Keep in mind that different rules apply to married individuals, older Americans, and heads of household. 
 
It’s important to note that even if you can be claimed as a dependent on someone else’s tax return, the $13,850 threshold still applies to you. 
 
If you are considered a dependent, you must file a return if you have accumulated at least $1,250 in “unearned” income, such as interest from investments.

Get Your Documents Together Early

 
Once you’ve determined that you need to file a tax return, it’s time to gather the necessary documents to complete it.
 
Here’s a list of essential documents to gather:
 
W-2: If you have a job, your employer is required to send you this form by the end of January. It provides details on your earnings for the previous year and the amount of tax withheld.
 
1099s: These forms report income that doesn’t come directly from a traditional employer. They include earnings from freelance work, “gig” pay, interest and dividend income, as well as income from third-party platforms like Venmo and PayPal.
 
Receipts: As a first-time taxpayer, it’s important to start keeping records of transactions that may need to be reported on your tax form. This includes income, expenses, and potential deductions. For example, keep track of any charitable donations you make or significant medical bills you incur.
 
By gathering these essential documents, you’ll be well-prepared to complete your tax return accurately and efficiently.

Gather Important Personal information

You’ll need the following personal information on hand to file taxes:
 
  • Social Security Number (SSN) or Taxpayer Identification Number
  • (TIN) for yourself and any dependents
  • Full name and date of birth for all individuals on your return.
  • Proof of identity with a valid photo ID
  • Bank account information, including your routing and account numbers, if you want to receive your tax refund via direct deposit.

Figure Out If Someone Can Claim You as a Dependent

 
It’s important to determine whether someone can claim you as a dependent, especially if you’re living with your parents or receiving any financial support from them.
 
According to TurboTax, parents can claim you as a dependent if you’re under 19 years of age, or under 24 and a full-time student, and they provide more than half of your financial support.
 
While parents can receive tax benefits by claiming you as a dependent, it’s also crucial for you to report this dependent status on your own tax return. 
 
Be sure to check with your parents and discuss whether they plan to claim you as a dependent and how it may affect your taxes. Always stay informed to ensure that you’re taking all the necessary steps towards financial success.

Figure Out If Someone Can Claim You as a Dependent

 
It’s important to determine whether someone can claim you as a dependent, especially if you’re living with your parents or receiving any financial support from them.
 
According to TurboTax, parents can claim you as a dependent if you’re under 19 years of age, or under 24 and a full-time student, and they provide more than half of your financial support.
 
While parents can receive tax benefits by claiming you as a dependent, it’s also crucial for you to report this dependent status on your own tax return. 
 
Be sure to check with your parents and discuss whether they plan to claim you as a dependent and how it may affect your taxes. Always stay informed to ensure that you’re taking all the necessary steps towards financial success.

Determine Your Tax Filing Status:

Here are the five primary filing statuses: 
 
  • Single: If you’re unmarried.  
  • Married (filing jointly): For married couples who want to combine their income on one return.
  • Married (filing separately): For married couples filing separately.
  • Head of household: For unmarried individuals who support dependents.
  • Qualifying widow/widower with dependent child: If you’re a surviving spouse with a dependent child. 
 
Include the appropriate filing status on your forms, when filing your taxes for the first time.

Find Out If You Qualify for Deductions or Credits

 
When it comes to taxes, deductions and credits can both help decrease your overall tax liability. Tax deductions work by reducing the amount of your income that is taxable while tax credits decrease the amount of tax you owe.
 
For first-time taxpayers, there are a few common deductions and credits that may apply:
 
  • The student loan interest deduction is one example of a deduction and can possibly result in a maximum deduction of $2,500 for the interest paid on student loans.
 
  • The American Opportunity Tax Credit is a credit that can be claimed by those individuals for whom no one can claim as a dependent, allowing for up to $2,500 credit for college expenses.
 
  • The Earned Income Tax Credit may be an option for individuals who earned a low income in 2023. It is essential to consult the IRS tables for information on how to qualify for this credit based on your income level.
 
  • Lifetime Learning Credit: A credit that helps cover the costs of post-secondary education, including tuition and related expenses, for eligible students. 
 
  • Educational expenses deduction: This deduction covers certain educational expenses. 
 
  • Home Energy Tax Credits: A credit for homeowners who make qualifying energy-efficient home upgrades.
 
  • Energy Efficient Home Improvement Credit: A credit for homeowners investing in energy-efficient home improvements. 
Deductions and credits can be a valuable tool when it comes to claiming your taxes.
 
Getting your taxable amount to the lowest possible is important if you want to pay less in taxes. It’s crucial to research which ones may apply to your situation and take advantage of them while preparing your tax return.

Decide if You Need Help

If you’re a first-time taxpayer, you have the option of either doing your own taxes or hiring a professional. 
 
Many Gen-Z individuals choose to do their own taxes, which is generally fine if your tax situation is straightforward.
 
By taking the DIY approach, you can potentially save money and complete your tax return quickly using tax software or the official IRS Free File program.
 
 Calculate your estimated Tax Return using Turbo Tax.

Completing Your Tax Filing

 
Once you’re prepared to file your taxes, it’s important to ensure the accuracy of your tax return. Take the time to review your personal information, income, deductions, and credits for any errors or omissions.
 
Online Filing: If you choose to file online, the platform you use will typically guide you through the process. Before proceeding from one page to the next, carefully verify the information provided for an easier filing experience.
 
 
Tax Professional Assistance: When working with a tax professional, they are responsible for reviewing their work. However, it’s crucial to provide them with accurate information from the start. If needed, ask for a walkthrough of your return to gain additional peace of mind.
 
Nonprofit Organization Assistance: If you’re seeking help from a nonprofit organization, you might be required to attend in-person sessions and bring all necessary documents. The organization will then assist you in submitting your tax return.
 
Paper Filing: If you opt for paper filing, complete all mandatory forms accurately, attach supporting documents, and send the package to the appropriate IRS address. Take the time to double-check everything before mailing your return, and remember to include a signed and dated copy.
 
It’s crucial to file your return by the tax deadline to avoid any late penalties. For the 2024 tax year, the deadline is April 15, 2024.

Pay the IRS if you owe taxes

After filing your taxes, you’ll either receive a tax refund or a notice of the amount you owe to the IRS. If you end up owing money, you’ll need to know how to pay what you owe.
 
You have a few options:
 
  • Use IRS Direct PayThis online service lets you pay your tax bill directly from your bank account. It’s a secure and convenient way to pay the IRS without any fees. 
  • Pay with a credit or debit card: You can pay your taxes using a credit or debit card through authorized payment processors, but this method includes fees. 
  • Pay in installments: If you can’t pay your tax bill in full, you may be eligible for an installment payment plan with the IRS. This allows you to pay your tax debt over time in manageable installments. 
Whichever method you choose, pay what you owe on time to avoid any penalties.

Common Tax Mistakes to Avoid For First-Time Filers

  • Misreporting any earned income
  • Not claiming qualified deductions or credits
  • Forgetting to sign and date your Tax return
  • Missing the date to file
  • Not keeping organized and accurate records.
  • Inaccurate Filing Status

This post was all about, everything you need to know before filing your taxes for the first time.

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