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5 ways you should spend your money if you don't want to go broke

How rich people stay rich even after spending

Rich people tend to stay rich while people trying to be rich never seem to escape the shackles of brokeness that have them trapped in their perceived gutters.

That may be because of the habits of the rich.

According to articles on the internet, rich people do various things a different way that is more practical and utilitarian.

They have an attitude that promotes money coming from money rather than a culture that drains the bank account like a sink with a hole for a drain.

ALSO READ: 4 money saving tips you should ignore

Here are some habits you should try if you want to stay rich.

1. Buy second hand

Don't go for the showroom things. Cars, bikes etc., always buy second hand because items like these have a high depreciation value. Even mobile phones.

2. Invest wisely

When buying land, try to save until you have an amount where you can pay the full amount or at least a 15% deposit. Always make sure the land/property you're investing in is less than two and a half times your annual income.

That way you don't end up crippling yourself.

ALSO READ: 4 effective money hacks to ensure you never go broke

3. Buy forever

Instead of buying many cheap things which will only last a short while anyway, buy one thing that can last for life. You're better off buying a Sh2,000 pair of shoes of great quality rather than 20 pairs of Sh100 shoes that can barely make it through one of Nairobi's famous rainstorms.

4. Wait for good deals

Most people if offered a chance to take Sh500 now or Sh1000 in three weeks will pick the Sh500 now. Rich people, however, prefer delayed gratification to instant gratification. Wait until you can get the best value out of something. Don't get caught up in get-rich-quick or something-for-nothing deals. You'll end up conned or getting peanuts for your investment.

5. Buy functional not extravagant

Rich people don't necessarily want you to know they're rich. Luxury lifestyles may not be every wealthy person's cup of tea but unless you can actually afford it, don't even go there. Or entertain it. Assume the such lifestyles are only for instagram's sake. Buy something because you need it. Not because it can make you look rich when you can barely even afford your fare.

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