Best long-term investment sometimes is not on your business, but your lifestyle.
Norio is a Japanese financial expert, author of the book “How to make 300 million yen at the age of 33.”
According to him, the difference in shopping habits between the rich and the poor is one of the most important elements that results in “the rich get richer.”
For the rich, even though they are financially rich, it doesn’t mean they will spend money wastefully. They have the habit of best long-term investment in everything, even when they buy the common stuff for life.
In contrast, the poor with difficult economic conditions are often very comfortable buying things. This in turn leads to a waste of money, resulting in all the factors of “being poor forever being poor.”
In his book, he made some interesting observations as follows:
There are 3 things that the rich never buy, but the poor like
1. New cheap clothes
Too many clothes make you have to pay a lot of money. Not only that, but it also takes you time to think about what you should wear today.
That is why the rich limit buying new clothes, especially never cheap fashion clothes. This item is cheap but not durable, even has broken after just a few wears and washing. So it becomes a short-term but not the best long-term investment.
Not to mention poor quality, during use does not bring comfort to the wearer. Another aspect, constantly changing clothes makes you throw more trash into the environment.
One-priced items are also similar in this case. The rich never buy one price, but the poor love it because they are cheap. Accompanying that is not high quality, not great use-value, sometimes “good” then buy and then “leave.”
However, the poor often buy when walking on the street thinking “not much money.”
2. Buy more books when the books have not been fully read at home
Reading is a great habit. Everyone knows this, so many people do not hesitate to enrich bookshelves at home whenever possible.
You see, if you are a hard-working person to buy books, then surely you can hardly read all the books you have at home. That leads to wasted money.
Make sure you read through the books at home before buying a new one. Also, you can sell books to others after reading them, use that money to buy new books. By doing so, you still load more knowledge, increase your understanding and save the money to the maximum.
Not just books, any item, too, buying new when old things at home can still be used is not wise. And the rich certainly don’t.
3. Buy many similar utility items
The poor often buy many items with similar uses. Since then, the frequency of using the item is not much, obviously wasteful.
For example, many people like to buy various types of pots and pans. As a result, some dishes are only used a few times a year.
Among them, only about 2-3 dishes are used regularly only. There are many more things like that, it is understandable that the poor cannot save money.
Rich people who buy things must meet 2 criteria
1. High durability
Rich people buy things that put “quality” first. An expensive but durable item that can be used for a long time. Calculating the price is still cheap, buyers still save money.
2. Possibility to sell to hand that turn it to kind of best long-term investment
The rich often buy items that can be resold without losing too much from their original purchase price.
From houses, cars, watches, furniture …, they always consider carefully before buying.
The moment they want to buy new things, they will sell the old ones at a good price, thereby saving money as much as possible. It’s similar to the kind of best long-term investment.
