Learn the difference between a rich
It’s important. Your
So, if you want to be wealthy, follow the habits of rich people.
And when you do, you’ll begin to create a new destiny – a financially-free destiny!
So what are some of the most important habits of the wealthy?
(1) Saving Habits
If you want to be rich, there’s only one rule you need to remember.
And the rule is simple – buy assets.
This one habit is huge when it comes to those with a rich
However, an accountant’s and other people’s use of the term ‘asset’ is different from the rule we just mentioned.
And so there’s no confusion, the asset I’m talking about is something that has the potential to put money in your pocket.
This difference is what you need to keep in mind. And it will help you stay away from common money traps.
For example, people often consider their house as an asset. But, is it?
Because your house takes money out of your pocket every month. Which is why it’s a liability. But, if you have a rental house and you are making positive returns from the rent, then yes, that house is an asset.
And this is another big difference and insight when it comes to a rich
Another common trap is a car.
And no, your car is not an asset as it takes money away from your pocket. On the other hand, if you need your car to run a profitable business, then yes, now it becomes an asset.
These two examples above are what most people call a “need,” and in most cases, it is true. You need a house to live in, and in most areas, you also need a car to move around.
However, do not forget these items are liabilities. Which means you want them as low-cost as possible.
And you maybe asking why?
Simple, because in order to buy assets, you need to have money.
Unless you’re born rich, you need to save money so you can start buying assets. And it’s a significant difference between a rich
The rich will often save money to buy more assets. And those who don’t have that much money will blow what they do have buying liabilities.
Saving money is the first step.
Once you have enough money from saving, you need to start investing. And if you want to be rich, you need to invest.
There’s very little wiggle room with this point.
Because when you have a job, your
There are two options.
First, he or she can double the working hours. However, there are only 24 hours in a day. So you can’t just keep doubling your working hours to keep doubling your
The second option is to start charging more.
But, there’s a limit to this because of competition. You can’t just start charging ridiculous prices as people will go to other doctors. But, when you invest your money, it works differently.
If you have an investment that is giving you $1,000 per month, the way to double that and make it $2,000 is simple. You buy another similar asset.
The 24-hour limitation will no longer play a significant factor in the equation. And you can keep buying more and more assets to keep increasing your
The only limitation here is how much money you have to buy the assets.
This is something the rich know and use to their advantage. The true power of
(3) Application Of Basic Math
If you’re worried you need to learn complicated mathematics to become wealthy, there’s no need to worry.
You only need to know the basics.
Specifically more about certain odds and probabilities. This is also the reason why wealthy people are not serious about gambling.
And according to a study by Tom Corley, a wealth guru, only 23% of wealthy people do serious gambling. On the other hand, 52% of the poor gamble with lottery and similar forms hoping they win it big.
Mathematically, you’ll never win with the lottery or casino in the long run because the probability and payout will never be in your favor.
Most poor people assume rich people do their gambling in the stock market. However, there’s a big difference.
With the stock market and other forms of paper
And that’s something that’ll never happen in a lottery or when you’re playing against the casino.
This is why the wealthy put their money where the odds are in their favor, and poor people will do the opposite.
(4) Stop Watching TV
Another finding by Tom Corley states that 67% of wealthy people sit in front of a TV for an hour or less daily.
And only 6% of them watch a form of reality TV.
This is a huge difference because, with poor people, 78% of them watch reality TV. The real reason behind this is the time being spent.
And I’m not trying to say just because you watch some reality TV will make you poor. But look at the bigger picture.
Time is your most valuable asset.
We all have 24 hours a day. If one person spends most of his or her time in front of the TV while the other person spends his or her time on education and the execution of plans, which one do you think will come ahead in the long run?
(5) Never Stop Learning
According to Dave Ramsey, the controversial self-help author and wealth guru, 88% of wealthy people read at least 30 minutes a day.
On the other hand, only 2% of poor people do such a thing.
This difference is very drastic, and it’s something you should take seriously if you want to be wealthy. And it’s an essential habit to keep.
Closing Thoughts on The Rich
Mindset vs Poor Mindset
Tony Robbins has a good analogy when describing the direction of our lives.
Imagine two boats going in the same direction side by side. However, one boat shifts direction away from the other boat by only a few degrees.
At first, the difference won’t be noticeable. However, given enough time and distance, the two boats will be hundreds or thousands of miles apart.
And if you don’t like the direction of where your life is going, then change your habits.
It’s not going to be easy at first as habits are not easy to break.
But look on the bright side, picking up wealthy habits is like nudging your boat in a different direction by only a few degrees.
And just like the analogy, the difference will barely be noticeable at first.
But give it enough time, and you’ll find yourself thousands of miles away from the path of your previous life.