Good morning, afternoon, or evening
Where ever
you are in this world, I love you and hope you are doing great.
Dear
friends, before we start our today’s subject, I appreciate your support by
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Today I am
going to talk about a unique subject whom I believe that every one of us
deserves to know about, which is:
The Top 12
Things that Rich People do (that you should do too). please consider this as a friendly
advice.
So you and I
work hard every day. We save money. We follow all the rules. But it still feels
like there is never enough.
Welcome to
the club
I also have my days. You’re not alone.
Since I have
been having one of “those days” I started to think and then I started to write
because that is what I love to do. So I made a few observations.
There are a
few things that rich people have in common.
Have you
heard the phrase “The rich get richer”? It is a phrase that I have heard time
and time again but it wasn’t until I started earning a steady pay check that I
realized what in the world it meant.
What does it
mean to be rich?
According to
the Merriam Webster dictionary the definition of the word “rich” is:
Having
abundant possessions and especially the material of wealth.
If that is
the definition of rich then I am definitely not rich. At least according to
that definition. Most of us aren’t. However, that doesn’t mean we will never be
rich.
My
definition of “being rich” is having financial freedom. Being debt-free,
maintaining a low cost of living, and having the ability to do what I want when
I want without killing myself trying to make all the money.
So here are the
few observations I have made throughout my life and things I personally do to
hopefully be included in that category of “The Rich”. My definition of Rich is:
And just
before I get deeper into the subject.
Kindly keep
this is always in your mind:
‘’Make your
money work for you and don’t work for the money, don’t let it control your life
I believe you’re beginning to understand where I come from!
And nowhere
are The Top 12 Things that Rich People do (that you should do too.
1. Rich
People Do Not Spend Money to Look Rich.
Have you
ever seen that person that always seems to have the latest iPhone, best car,
and designer clothes? Yet, they can barely make their rent. Yes. That is the
person I am talking about. The person that lives paycheck to paycheck,
however, eats at the best restaurants and has the hottest gear.
Are you that
person? If you are that person then you need to stop right now. I understand
you want to look good. You want people to see you can afford these things. I
get it. But that is not helping to build wealth. You are making someone else
rich.
Some of the wealthiest people I know are the most modest and unassuming. They don’t worry
about how to look rich. They do not wear designer brands. They do not drive
fancy cars. But what they do have is financial freedom. I’ll take that every
day over a fancy car.
2. Rich
People Do Not Drive Brand New Cars that they saw on TV, you see all those
billionaires driving fancy new cars but let’s be honest. In the real world,
most of the wealthy people I know buy a new car and keep that car until they
drive it into the ground. Do you know what it is like to live life without a
car payment? It’s amazing. So why bother investing in something that has no
return other than getting those coveted heads turns at the light. Those head
turns are not going to help you when you want to retire early. So take a note
from some of the wealthiest people out there and resist the urge to upgrade
your car every year.
3. Rich
People Invest
The word
invest is a scary word. Especially when you are in your 20s and 30s. However, don’t be scared. Investing can mean a million different things. It can mean
anything from setting up a savings account to working with an investment
advisor. The best thing to do is to educate yourself. Even if you don’t feel
like you can afford it even the smallest investment can make a big difference.
This leads me to my next point.
4. Rich
People Invest Quality over Quantity.
That is not
a typo. Rich people make it a point to invest in the things they buy. It is not
about quantity. It is about quality. Think about it. Let’s say you find a great
deal on a Mixer. It is $50. Except you have to replace that Mixer every year
for the next 10 years. Well, that $50 Mixer just cost you $500. A rich person
would instead invest in a $250 Mixer that will last for 10 years for a savings
of $250. The same thing goes with
furniture and apparel. Think about the cost per use as opposed to the deal you
are getting when making purchases. This works out to the difference between
being frugal vs. cheap.
5. Rich
People Read… A Lot.
Rich people
are always reading and learning. When I first graduated the first book I read was (Think and grow rich).
This book
changed my life. It gave me the guidance I needed not to make the same mistakes
as my peers. Reading and learning
definitely work in your favor. Instead of being intimidated go to your local
library and pick up some money management books. Or check out some of your favorite
bloggers. You will be surprised by what you will learn.
6. Rich
people Live beneath Their Means.
During the housing crisis, there were a lot of people that found themselves unable to
afford their homes let alone their lifestyles.
Many people
lost their jobs. Others went from having a double income to only one and still
couldn’t afford the mortgage.
This taught
me a big lesson. Live beneath your means. Just because you make more money
doesn’t mean you have to spend money.
Bigger paychecks mean bigger bills. However, for those of us that live
well beneath our means, a bigger paycheck means we are that much close to
early retirement.
When most of
us graduate college we are barely making it. Between rent, student loans, and
just live there is barely leftover anything else. So it is natural that once
you get that first big raise you lose your mind. I 100% agree that you should
enjoy your money and your life however ask yourself. Do you really need it?
Instead of
buying a bigger house or getting a fancier car take that extra money and invest
or put it towards your retirement. You will thank me later. I promise. But, if
you really want that bigger house or fancier car make sure you can
realistically afford it.
Be prepared
for the unexpected. There are too many people that are living paycheck to paycheck despite the fact they are making six figures. There is no reason why you
should be in that position. I know
people will have something to say about that statement but as someone that
lives and works in New York City, one of the most expensive cities in the
world, I am confident in making that statement. Be realistic people and make
the decision to live beneath your means.
7. Rich
People Do Not Have Debt.
Good debt.
Bad Debt. In my mind debt is debt. It is an extra bill that I am getting every
month. Paying off your debt is the best way to get closer to becoming rich. And
when I say rich I mean having liquid funds. Think about it. Let’s say you have
a credit card, a car payment, and a student loan. Let’s say you paid all of
those off. How much extra money would you have in your pocket every month? I am
pretty confident it would be a good chunk of cash.
Most wealthy
people do not have debt. They have liquidity. Which gives them the flexibility
to spend when they need and want to.
I will say
personally. The day I finished paying off my student loans I felt rich. I had
no idea what to do with myself. I spent so many years forking over so much
money that I learned to live without it. What did I do though? I took the
amount I was paying in student loans and put it towards my savings and
retirement. So I still don’t see that money in my pocket but rest assured I
will be enjoying that money soon enough.
8. Rich
People Budget.
The word the budget comes across as a bad word to a lot of people. What do you mean I need
to be on a budget? Well, guess what. Sitting down and coming up with a budget
can be very beneficial to you for many reasons. One, it helps you realize how
much you might be overspending on things you don’t need. Second, it gives you
an opportunity to assess your finances in a way that allows you to take action.
You don’t
have to cut back on fun in order to enjoy yourself. Get creative with Free
& Cheap Date Ideas. For example here in NYC, we take advantage of the Free
Outdoor Movies.
Rich people
have a budget and they stick to it. This is how they are able to afford to live
the life they live and still have leftovers for retirement and investing. Just
because you have a lot of money doesn’t mean you can lose your mind buying
everything you see. You can live on a budget fabulously.
Always
remember! Make your money work for you.
9. Rich
People Love Their Job.
It’s human
nature. When you love what you do you devote more time and energy to it. You
give it you're all. So it is no wonder that people that are wealthy are also
successful in their careers. They love
what they do. Therefore they strive to be the best which hopefully means more
money.
Looking for
some ideas. Check out the 4 Hour Work Week by Timothy Ferriss.
So find a
job or career that you love. And when
you do rock it out. However, let’s not get greedy.
This brings me to my next point.
10. Rich
People Are Not Greedy.
I am by no
means saying that poor people are greedy. When I say greedy I think of the
person that only thinks about money and makes every life decision based on how
much money they are going to get out of it. That doesn’t work.
Needing
money because you are trying to pay your rent and wanting money because you
want to show everyone you got money are two completely different things. It is
about showing gratitude for what you have and not just chasing the dollar to
chase the dollar.
11. Rich
People are Risk-Takers.
Sometimes
the biggest risk can yield the biggest rewards. You definitely shouldn’t go too
far out of your comfort zone, however, whether it is something as simple as
trying something new, quitting your job to go to school, or completely doing a
360 on your career this is the perfect way to move towards your goal of being
rich someday.
As someone
that is risk-averse, I went against my instincts, took a huge risk, and have not
looked back. I have never been happier.
12. Rich People
Surround themselves with Other Successful People.
Peer
Pressure. It’s a thing. I am the person I am today because of the people I am
surrounded by. Remember when your parents used to come down on you for hanging
out with the “wrong crowd”. They knew what they were talking about.
Rich people
surround themselves around people that inspire them and push them to be
better. So look around you. Who are you
surrounded by and how do they motivate you every day.
Now before
you come down my throat and say Hey. I’m Poor. And I do all of those things.
That’s not
fair. Let me start by saying then you are on the right track. These are the things that I have noticed and
observed are traits of people that are wealthy. I am not rich and I do all this
stuff. However, if I didn’t I probably wouldn’t be able to pay my mortgage. So
there it is.
The
definition of the word rich is relative. If you asked me if I was “rich” I
would say boom well okay. Yes, that is a
word. Why? Well because I have enough. I don’t have everything but I have all I
need to live the life I want.
So let’s get
rich together. And don’t forget to create a Monthly Wealth Tracker
to get started.
Thanks
for watching and subscribing.
Have good luck with me.
Sam
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