By observing their habits and learning from them, I made my first million by the age of 27. Here are four unpopular rules that rich people follow that most other people don't.
Wealthy people put most of their spending power into buying assets (things that cost money over the long term) rather than liabilities (things that cost money over the long term).
For example, instead of buying a flashy Lamborghini that loses a third of its value as soon as it leaves the premises, a really wealthy person would spend the same change to buy and rent out a two-family duplex.
They don't care what you think about them or whether you're impressed. They happily cashed their rent checks; you pay the mortgage.
So many people have a scarcity mindset. So you always feel like you'll never have enough money, that you're just one step away from disaster, and that you have to save every last penny.
The problem with this idea is that it can make people very competitive with other people in similar economic situations. This means that those at the bottom of the pyramid spend all their time and energy fighting each other for resources instead of trying to overthrow those at the top.
Rich people have an abundance mindset. They are not worried because they know they can take care of their bills. This gives you the freedom to decide what you want to do with your time instead of focusing only on what you have to do to survive.
Rich people understand that things take time, so they are willing to wait. They are the king and queen of delayed gratification.
Wealthy people, for example, have no problem putting away money in retirement accounts. That's right, the $6,000 they invested in an IRA account this year won't be available until they're 59 1/2 years old.
But they know that just because they can't use the money right now doesn't mean it's gone. In fact, the opposite is true: the longer you wait, the more money you'll get later on.
Rich people like to be known as the smartest people in their friend group, the ones with the best taste and on the cutting edge of all trends. I often hear them say things like:
- “I have a great tax person. You should work with them.”
- “We found the best cocktail bar. Try the martini.”
- “I joined the best country club, and I'm sponsoring you to join, too.”
They realize that when they open up their knowledge, others are more likely to share as well. They are know. This is another valuable form of currency, and it's the same reason rich people like to put their best friends in positions of power.
Their thought process is: “I'm not qualified for this job, but my friend is. If she gets the job, she will owe me well. As soon as I take the job, I will be automatically nominated throughout that network. ”
Yes, it's because they like to see their friends succeed, but it's also because they think strategically and toward the future.
Vivian Tu Former Wall Street trader turned expert, educator, podcast host, and founder of the financial stock phenomenon your rich friend. her new book, “Rich AF: A winning money mindset that will change your life.” is the definitive guide to personal finance for a new generation.follow her tick tock, YouTube, linkedin and Instagram.
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