You put in the effort. You tried saving money but then, you often find yourself with little money at end of each month. You wonder where did it all go wrong.
Today, I’m gonna tell you the 7 Main things the rich do that the poor don’t.
1. The rich focus on net worth, not working income
Poor people often talk in terms of hourly pay, whereas wealthy people know that an hourly income is not nearly as important as someone’s net worth.
One can earn quite a lot of money per hour, but if they don’t learn to keep any of it, they will still be broke in the end.
The rich person knows that a large net worth will net many opportunities and will create more wealth in the future.
2. Create multiple income flows
The more money you have, the easier it is to make more money.
And the easiest and fastest way to make more money is to have multiple income streams – a no-brainer.
That way you always have money coming in and can use the excess income to invest in new income flows. This, in a nutshell, is the primary way the wealthy stay wealthy.
There are two basic forms of income: active income, in which you work for the money you make, and passive income, in which payment isn’t directly tied to the number of hours you work.
Passive income includes rental property, dividend stocks, index funds, writing a book or creating an app, all of which will bring in a steady flow of income from sales or royalties.
Rich people make their money work for them. They know that investing is the key to growing their finances.
While saving money for a rainy day is important, your investments are going to do the heavy lifting to help you become wealthy.
While it’s good to put your money in savings, you need to put most of your money into work i.e. investments.
If you are new to investing, I’d recommend start putting your money into low risk investment. Start small, get a feel to it. It goes without saying you need to do your homework before taking the plunge.
4. The Wealthy Keep a To-Do List – They Stay Organized
Being organized by keeping a to-do list is one of the habits of the wealthy that may seem too simple to be true.
In reality, by staying organized, it helps you to remain focused on important things that will help you to reach your target. In a nutshell, keep your to-do list lean and simple.
Years back, Warren Buffett suggested his pilot to list down top 25 things he wants to achieve in life. Then, he told the pilot to only circle top 5 and focus on it.
Also, keep in mind there’s a research shows that 81% of the wealthy keep a to-do list, while only 19% of the poor will.
5. The Wealthy NEVER Stop Educating Themselves
How often do you hear that the best investment is to invest in yourself?
That’s because the wealthy READ! They will read materials related to their career or education to better themselves.
There are a number of successful people share how reading everyday keeps them on their toes. They continue to learn every day even after achieving success.
In this modern age, knowledge grows and distributed very quickly – globally. To continuously educate yourself is the only way to remain relevant in your industry.
6. The rich associate with positive, successful people
Rich people know that attitude is everything. If they continuously hang out with people that complain about the weather, bad-mouth the government, and speak negatively about the state of the economy, then they will likely start doing the same thing!
If, however, these same people start hanging around individuals that continuously talk about success, opportunity, and the positive things in life, chances are that they will see the world from an entirely different perspective!
Take for example the immigrants that come into the States. They are more likely to end up becoming millionaires compared to those born and bred in USA.
US citizens often complain over the little of things, while immigrants see the nation as the land of opportunities. In a nutshell, it comes down to the “glass half-filled or half-empty” argument.
7. LEARN FROM OTHERS’ MISTAKES
Why make a mistake if you don’t have to?
Unlike the poor, rich people tend to see things in the long run. Hence, they plan and budget relentlessly. By having a plan, the rich has a clearer picture of their financial status. This leads them able to spend, save and invest wisely. The opposite can be said for poor people.
On top of that, the rich often educate themselves as much to reduce the risks involve in decision making,
When the rich makes mistakes they learn from them. By networking with other successful rich people they can also learn from mistakes that their peers make too.
In fact, these people are also perfect business partners since they have seen and done it all – so to speak.
My Two Cent
I do know this article sounds like bashing the poor. I’m not.
I’m just sharing with you how exactly it is not to be poor, and as you can see – it’s not ‘rocket science’ as claimed by many ‘business gurus’ out there.
If you read my articles enough, you’ll soon realize that becoming wealthy comes mainly down to two things; you gotta work hard (there’s no shortcut) and to sacrifice your wants for long term success.