What Are the Secrets Only the Wealthy Know?
That’s the question posed in an online forum recently.
Answers ran the gamut of the spectrum, but here are 28 we found especially helpful, in completely random order…
Become financially educated. Read personal finance management books, starting with Rich Dad Poor Dad. Learn how to budget and how to invest.
Live frugally. If you’re thinking you can’t save more of your money, take a look at homeless people who live on almost nothing. Yes, you can save money. Stop eating out so often. Cancel the cable. Don’t buy a new car. Don’t buy a new used car until you absolutely need one.
Always pay yourself first. Devote the first 10-30% of your pay to savings and investments.
Spend money on assets (real estate, stocks, bonds, etc.) not liabilities (everything that loses value the moment you purchase it). Thinking of buying a new car even though your old one is fine? Take that money and invest it in your business, in stocks, in real estate or something that is an asset. Then buy a good used car in a few years, when you really need one.
Don’t care what people think of you. Your neighbors think you’re poor because you don’t buy new cars? Little do they know that $20,000 you would have spent on a car is now earning you a 10% compound interest rate.
Invest in yourself. Self-education equals new knowledge. Add execution to that new knowledge and you get results. Repeat continuously.
Find ways to help as many people as possible. The more you can help others get what they want, the more money you can make.
Scale. Don’t render services when you can mass produce products. Better to make a $10 profit on a million sales than a $1,000 profit on 100 sales.
Stuck on services? Go upscale. If you’re going to render services, find the niches that pay the most.
Have multiple streams of income. This way if something happens to one, you are still in good shape overall.
Sell stuff. Lots of stuff. Hire others to help you, so that your earnings are no longer tied to your hours.
Always keep the return on investment in mind, whether your investment is time or money.
When you want to buy something, figure out how to make the money. Don’t take money out of your savings to buy a car or a vacation. Instead, figure out how to make the extra money needed to cover the new expense.
Be friends with people who have more money than you. Their mindsets and thought processes will rub off on you. That said, do not try to compete with them – keep the car and house you have now, at least for awhile.
Leverage your abilities to their fullest extent instead of working harder to get ahead. Forget working hard and focus on working smart. For example, a personal coach can create a course and sell it for $297 a million times over, but can only coach a few people one-on-one at any given time.
Take calculated risks. Failure is a part of the journey. If you’re too afraid to fail, you will never take the smart, calculated risks needed to become wealthy.
Use your head more than your heart. Make your financial decisions based on provable fact rather than gut instinct.
If you have a business, work ON it, not in it. Your labor isn’t needed to make the business a success – your ideas and leadership are.
Things like sports and entertainment are simply distractions for the masses. While you’re watching sports and shows 2-6 hours a day, the rich are making million dollar contacts, doing deals and starting businesses. If you get more of whatever you focus on – maybe it’s time to stop focusing on distractions and start focusing on your finances.
Bad decisions are better than no decisions. Any decision that moves you forward is better than total inaction. The key is make decisions quickly and work until you get results.
Confidence and belief in your ability will take you further, faster. The higher your confidence and the more you believe in what you’re doing, the easier it is to bring others on board, to convince buyers and to make money.
Having a lot of money doesn’t change life as much as you think. It’s not a magic shield from illness, tragedy or loss. You’re no smarter for having it (although perhaps wiser if you made the money yourself.) You still have problems, although they might be an entirely new set of problems. On the plus side, you never have to worry about putting food on the table or paying bills, which frees you up to think about bigger things.
People will look at you differently when you are rich. The upside is they respect you more. The downside is most people will want something from you.
It’s best to not flaunt your money, but instead put it to work to make more money. Many millionaires drive beat up cars and live in perfectly average homes. Few people know they are rich and they like it that way.
Don’t buy stuff you don’t need. Rent it, borrow it or do without. And don’t carry a balance on credit cards. Ever.
Never borrow money to make discretionary purchases. Only borrow money to make money.
Start with the end in mind. If you’re starting a company, from day 1 ask yourself what to do to make your company as valuable as possible so you can one day sell it for millions.
Lastly, having money is power. Power to help any charity you choose. Power to help anybody or anyone. Power to make positive changes in your community, positively impact the lives of others and make the world a better place.