‘Money Rules’ Billionaires Swear by That Regular People Ignore
Written by
Cindy Lamothe
Edited by
Rebekah Evans
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
We’ve all seen those flashy posts about what billionaires supposedly do with their money — and felt a mix of awe and “yeah, right.”
According to Fortune, the U.S. has over 900 billionaires. The truth is, the financial advice that works for someone with millions in the bank often doesn’t translate to everyday life. Most of us aren’t juggling private investment deals or multi-million-dollar properties — we’re managing bills, making budgets and saving for the future.
Here’s a breakdown of why billionaire money rules often miss the mark for the rest of us.
Why Billionaire Advice Often Misses the Mark for Real Life
“I always smile when I see posts about billionaire money advice because it’s completely out of touch with reality,” said Kevin Marshall, certified public accountant (CPA) and lead contributor at Smithii Tools.
He explained that financial rules that wealthy people preach seldom align with the real-life needs of average households. As a finance professional, most of his time at work involves helping people manage budgets, prepare taxes and improve cash flow.
“These worries have nothing to do with the financial struggles of ordinary people. Most people do not have resources to implement some of the strategies they propose,” he said.
‘Don’t Spend’ Advice Ignores Everyday Necessities
Marshall noted that those who have accumulated wealth often caution against spending money on things that lose value.
“The statement becomes easier to comprehend when you have multiple properties and a massive investment portfolio,” he explained.
Ordinary people need cars, phones and furniture to work and live. For the wealthy, private investment deals are the only worthwhile investments, Marshall added, which carries the fear of losing millions of dollars.
“The majority of people do not have this kind of financial freedom. People who want to succeed financially do not need this level of wealth,” he said.
Financial Stability Changes the Rules of the Game
“Billionaires have financial stability because they already have enough money,” Marshall said.
He explained that the way they spend money for day-to-day living is isolated from how money comes in. Especially in terms of financial operations.
“Which are completely different for affluent families than they are for those who need to earn an income and balance expenses with savings.”
Extreme Frugality Isn’t the Only Path to Financial Smarts
According to Marshall, some people admire those who practice extreme budgeting by driving old cars, wearing the same clothes every day and not having coffee or lunch out.
“Regular people should stay away from it,” he said.
He noted that the smart approach to money management enables you to enjoy life to the fullest while learning how to manage your financial resources.
“No special or secret knowledge is needed to improve your finances,” Marshall explained.
He recommended expense tracking, automatic saving and debt control that will yield substantial benefits over time.
“Small steps have the ability to completely change one’s life,” he added.
Chasing Someone Else’s Lifestyle Won’t Grow Your Wealth
“Trying to emulate successful people’s lifestyles will only make you unhappy,” Marshall said.
Instead, he said your financial growth and development will be determined by how you manage your finances and not by someone else’s financial status.
“When you are aware of your current financial status rather than trying to fit into a lifestyle beyond your means,” he added.
More From GOBankingRates
