The secret of whether you need to be "tight" or "generous" to become rich!

September 13, 2017

A common question I get asked is, to become richer, do you need to be tight with your money or be generous? This is so interesting. The majority of very rich people I know, are extremely tight! For example, the person that had the biggest sports nutrition company in the world, is one of the tightest people I have ever met. He is pleasant and charming but I cannot recall a time when he EVER paid for anything. Another example is my neighbour in one of my properties in Marbella and he is TIGHT! And worth £50m! For every 10 meals we have, he will pay for 1 and I will pay for 9. I have always been very generous and I don’t think it has affected my wealth as such. I don’t see it like that. I think if you are petty and worried about a few pounds here or there, then you are not a “big picture” type of guy and you won’t make big money. The flip side to that is that if you are a lavish spender, you will never keep any money! So, taking myself aside, I would say don’t be tight but do make sure that you are not spending any major money that you could be saving. As an example, if you are making £3000 a month, spending £100-£200 on entertaining your friends/clients is reasonable but spending £1000+ is silly. If this is you, then start being more “tight”. And adjust according to your income. If you are making a lot of money, spending some here and there is not going to kill you - especially if you can justify the spend in a way that can bring you more money (such as entertaining potential clients). It has worked well for me to be generous without being silly or taken for a ride. However, not being able to save is a real problem for many people. If this is you, then be more tight with your money. Make sure you put 10% of your monthly income aside. If you are the type that cannot save, you MUST keep hold of your money and be tight with it. 

 

 

 

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