Here are eight money secrets they know that most of us don't know.
In general, we recommend investing in a mix of different stocks, funds, and other investments to diversify your portfolio.
But as the wealthiest people build their net worth, they often commit to their own projects and diversify once their income starts to rise.
Elon Musk, for example, bet all the $22 million he earned from selling his first company, an online business directory called Zip2, into his next business, an online banking service called X.com.
After X.com merged with PayPal, he made $180 million from the sale of PayPal to eBay. That gave him cash to invest in Tesla, SpaceX and other ventures.
Because I had built up my net worth, I didn't go into debt for non-essential purchases like designer clothes or a luxury home.
Even if I could afford to pay my bills, I didn't want to waste my money paying interest. Instead, I wanted to put everything I was making into making more money. For me, it's about putting my income into my business.
I also paid for my house in cash and never accumulated interest on my credit card.
In some cases, if you are trying to start a business, borrowing money can help you make money by giving you immediate access to income-generating assets.
You might think buying a home is the American dream, but it's rarely the first goal of wealthy people.
In my opinion, home ownership doesn't always achieve the same return on investment as other places you can invest your money. He owns three houses, but I didn't buy them until I was able to buy them with cash.
On the flip side, cash-flow real estate, or commercial real estate where you get a monthly profit from mortgage payments, property taxes, and rent after maintenance, is a great way to grow your money.
You can earn passive income from ownership of these properties, and they are often easier to sell than your primary residence. When you sell your primary residence, you need to find a buyer who can imagine living there. If you want to sell your rental property profitably, all you need to do is find a buyer who wants to make a profit.
Wealthy people are willing to spend money on each purchase to get a lower price per unit and to save time spent repeating wasteful activities.
This applies to business (wealthy people may have contracts to buy large quantities of supplies and equipment) or to personal life. When possible, buy items without expiration dates in bulk.
I've never had anyone invest in me who didn't know me. And most of the properties I currently own have been purchased from sellers who chose me over other qualified buyers because they had an existing relationship and were confident in my ability to close. .
The more someone knows about you, the more they will trust you and believe in your talents and skills. This results in better opportunities, faster decision making, and higher profit margins.
Therefore, invest time and resources in establishing and maintaining good connections.
One of my friends is a serial CEO and has worked with some of the wealthiest people in the world.
I once asked him what they had in common and he said: already I accomplished it, but instead I focused on the next thing. did it May it be achieved. ”
Wealthy people are never satisfied with their accomplishments. They believe they can always achieve more. This will help you think deeply about future business ideas, inventions, investments, and other wealth-increasing things.
Wealthy people know that the only truly scarce resource is time. You cannot purchase more.
So they make the most of their time by letting go of the need to manage every detail of their business or portfolio, effectively outsourcing to better and smarter people who will trade their time for money. Learn how to delegate and delegate.
grant cardon I am the CEO of Cardone Capitalbestselling author of “10x rule” He is also the founder of the 10X Movement and the 10X Growth Conference. He owns and operates his seven privately held companies and his portfolio of over $4 billion in multifamily projects. Follow him on Twitter @GrantCardone.
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