Last year, the Credit Suisse Research Institute said there were 1,117,000 people in Canada who were worth more than a million US dollars, with over half a million more to come by 2021. That means that there’s a good chance you might have a rich neighbour or two. Time Magazine shares their secrets.
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1. They Spend Less Than They Earn
The truly wealthy know that it is better to be rich but not look it than to look rich but actually be poor.
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You might also like: 10 super successful people share their biggest money secrets.

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2. They Are Patient
Unless you win the lottery, wealth seldom comes overnight. Becoming rich takes years of working hard, saving and investing wisely.
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Related: see the 20 richest rock stars in the world.

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3. They Choose Economy
One way of saving money is to choose the less expensive option. Many rich people have frugal habits, like wearing regular old chain store clothes rather than designer labels. Billionaire Warren Buffett famously still lives in the five-bedroom house in Omaha, Nebraska that he bought in 1958.

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4. They Pay Their Credit-Card Bills
Rich people know that racking up credit-card debt is a sure way to lose you money. They pay their bills in full every month and if they can’t afford to pay for something in cash, they don’t buy it.

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5. They Focus on Financial Freedom
The wealthy have learned, sometimes the hard way, that money alone can’t buy happiness. However, financial freedom can really raise your happiness levels.
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Need a change? Check out the 20 best places to work abroad.

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6. They Know What Financial Freedom Means
Financial freedom isn’t dependent on how much money you make. It’s about being debt free, having enough to do what you really want to do and having control over your finances.
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Related: the 30 best companies to work for in Canada.

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7. They Understand the Virtue of Having a Second Job
Having a second job or at least a second source of income helps you become rich in less time. Moreover, it helps prevent you from overspending out of boredom.

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8. They Manage Their Money
Managing your money wisely will help you make your wealth grow. Rich people aren’t reluctant to get expert advice when it comes to finding the best ways to manage their finances.
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See more: 10 productivity hacks to be a more successful you.

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9. They Pay Themselves First
To pay yourself first doesn’t mean that you go out and buy everything you want before you pay the bills. It means that when you get your paycheque, you first set aside a portion of it for savings before you pay anything else. This will help you develop good financial habits and you’ll have something to help you through a rainy day.
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You might also like: 20 must-know habits of self-made millionaires.

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10. They Enjoy What They Do
Of course, you could slog your life away at a job you hate but why would you? Most rich people make their money doing something they enjoy.

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11. They Know the Importance of Planning
Without a plan, you set yourself up for failure. Simply wanting to be financially free is not enough; you need to have a definite plan that will help you gain control of your finances.
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See more: these are the best jobs for a great work/life balance.

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12. They Don’t Rely on Luck
For a handful of people, luck has played a role in their road to wealth. For most, however, wealth came with sheer hard work and careful planning.
If you're planning to stay wealthy into your retirement. you'll want to read these tips.
If you're planning to stay wealthy into your retirement. you'll want to read these tips.

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13. They Think Big
To be financially successful, you need to think big. Your goals need to be significantly bigger than what you can deliver on right now. This will motivate you.
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More pics: how to retire with millions.

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14. They Know That Hard Work Can Make Up for Mistakes
Many rich people have made financial mistakes, sometimes with disastrous consequences. However, through hard work they managed to rebuild their wealth and make up for those financial mistakes.

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15. They Have a Contingency Plan
Life has a habit of throwing curveballs and these can wreck your finances if you don’t have a back-up plan. Rich people realize the value of good insurance to protect them against events that can threaten their financial future.
Related: 10 of the biggest myths about rich people.
Related: 10 of the biggest myths about rich people.

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16. They Start Early
The sooner you start saving and planning for the future, the more your wealth will have grown by the time you reach retirement age. In addition, it’s easier to learn new, good financial habits when you’re young.

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17. They Know That if You Can’t See it, You Can’t Spend it
Having cash in hand is convenient but it also becomes infinitely more tempting to spend your money on things you don’t really need. A good way to remove the temptation is to have savings and retirement-fund contributions deducted automatically from your paycheque and to adjust these deductions as you make more money.
See more: 15 retirement tax tips that'll save your nest egg.
See more: 15 retirement tax tips that'll save your nest egg.

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18. They Don’t Really Need to Work
Most rich people don’t really need to work, although many of them do because they love their job. They’ve paid their debts years ago and what they make now is simply topping up the coffers.

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19. They’re Not Impressed by Flashiness
Although they can afford ostentatious shows of wealth, the world’s richest people often live surprisingly low-key lifestyles. They live according to what they need and none of them have ever needed a house with golden toilets.
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20. They Know When to Cut Their Losses
Rich neighbours know that sometimes it’s better to just cut their losses than to sweat the small stuff.
See also: 20 reasons why you're destined to become a millionaire.
See also: 20 reasons why you're destined to become a millionaire.
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