10 Things I’ve Learned from Rich People
1) Delay Gratification
I talk about it all the time.
In order to accumulate wealth, you need to learn how to delay gratification.
You can’t afford to be having fun all of the time.
Getting rich requires you to work and focus.
That means no more going out every single weekend with friends.
Weekends are prime time to be working on your wealth.
Does this mean you’ll never go out with friends again?
Of course not.
It means that you’ll put your social life on hold until you achieve what’s really important.
Your financial freedom.
You won’t get rich if you continue doing what you’ve always done.
Getting rich requires behavior change.
Either delay gratification or prevent wealth.
It’s that simple.
2) Save money
Rich people aim to save more than they spend.
Now let’s think about that for a moment…
If you earn $10,000 a month, it means that the minimum amount you would save (if you behaved like a rich person) would be $5,001
And the maximum you would spend is $4,999.
Of course, unless you’re rich now or learn to live a minimalist lifestyle (living below your means) saving more money than you spend will be difficult after you pay all your expenses.
However, once you get rich, this is the way to stay rich.
By disciplining yourself to save more than you earn, you literally make it impossible to ever go broke.
I wrote an article the other day explaining how and why some people will never be rich even if they were to luckily win the lottery.
It’s all about financial discipline and having a success mindset.
And in order to save money and never go broke, you’ll need to combine both.
Unless you’re rich, in order to save money, you’ll need to cut back on expenses.
No surprise there.
However, you’ll be surprised how many rich people maintain a frugal lifestyle once they accumulate wealth.
You see, becoming rich is a mindset.
And once you develop that mindset, it’s hard to break, no matter what your bank account statement is.
Rich people don’t believe in spending unnecessary money.
Sure, most of them will reward themselves with a nice house and/or car.
But you’d be surprised to find that many of them don’t.
Many are focused on building more wealth and could care less for other things.
And they believe that a frugal lifestyle is the quickest way there, no matter how much money they’re earning and saving at the moment.
Carlos Slim who is a billionaire investor and ranked as the world’s richest man during the years 2007, 2010-2013, lives in what many would consider a small house for a man of his wealth/worth.
I remember an interview with him where the reported asked him “Why do you choose to live in a home of this size?” – A question most people around the world were seeking the answer to.
Carlos answered “This is all I need”.
There’s a TON of knowledge to gain from that simple five word response.
Now, to hear that response from a multi-billionaire is shocking.
But the reality is that he’s right.
And my guess is that his frugal and success mindset has taken over and no matter how much wealth he accumulates, he’ll never buy more than what he really needs.
He’s lived in the house for more than 40 years.
Rich people like to keep things simple.
When it comes down to getting and staying rich, the words frugal and simple are synonymous.
Rich people never stop their education.
And by education, I don’t mean they go to college and earn 10 different degrees.
What I mean is that they are constantly networking with other rich people, reading books, and trying new things in order to figure out ways to make more money.
Many people have the fantasy of getting rich so they never have to work again.
…That famous leisure attitude and mindset.
However, rich people have the mindset of “How far can I take this? How much more can I earn?”
Some may see it as greed, but rich people see it as a fun challenge.
They know they don’t really need any more money, they’re already financially free.
Instead, money is now a game to them.
And every time they earn more of it, it’s another win on their record.
Rich people take their time seriously.
Unless they’re on vacation, you’ll rarely catch them doing things that don’t earn money.
If you pay attention, all rich people, whether it’s investors, musicians, athletes, and so on; are always busy and involved in something.
If they’re not involved in something that will potentially add to their wealth, they feel unproductive and uneasy.
Many people wonder “Why do rich people spend so much of their time working instead of relaxing on a beach somewhere?”
The reality is that for rich people, sitting on a beach isn’t as relaxing as one would think.
What relaxes them is working.
Sounds crazy, right?
You’ll understand once you’re rich.
I remember a video of an entrepreneur explaining how when he’s at the dinner table with his family, one half of his brain is on his family, and the other is on the project scheduled for tomorrow.
A rich person’s mind is never on vacation.
It’s always thinking about wealth.
This is why they take their schedule/time so seriously.
If it doesn’t make them money, they don’t want to be part of it.
6) Speed of Implementation
When rich people have an idea they feel will make them money, they integrate it immediately.
They don’t sit down and begin to let all their doubts and fears convince them why it won’t work.
They take action as soon as possible.
If it works, it works.
If it doesn’t, they move on to something else.
Rich people are fearless.
They understand that earning money is a game.
Sometimes you win and sometimes you lose.
One strategy might cost you the playoffs.
But another strategy might win you the championship.
They know that dwelling on an idea instead of trying it will do nothing more than waste time.
And as I mentioned in #5, they take their time seriously so wasting time is a BIG no-no!
7) Push Further Than Average People
When I started blogging, I studied a lot of bloggers who are rich and successful.
I studied their daily habits, their websites, and their patterns.
And you know what?
I don’t fee there are secrets they keep from others.
It’s all right there if you just look and pay attention.
What did I notice the most?
Rich bloggers don’t stop blogging.
Their websites are jam-packed with content, and they continue to release more of it on the regular.
They also offer digital products (eBooks) for sale and continue to create more of them.
Since they don’t quit, they create success and more riches on the regular.
On the other hand, average bloggers aren’t as consistent or quit.
Whether it be at the 6 month, 1 year, or 2 year mark; averages bloggers give up when they don’t see riches.
Rich people know that quitting is the dumbest thing to do.
They understand that as long as you stick to one goal and keep working on it, eventually, you will succeed.
You’ll figure out how to become successful with your goal.
The answers will come to you.
Rich bloggers (and other rich people) have and will always push further than average people.
They keep going until they figure out how to accumulate wealth with their chosen route of success.
If you quit, you get nothing.
If you persist, you eventually get what you want.
There are no secrets.
Either follow them or stay behind.
Rich people are constantly looking for assets to buy.
As I mentioned earlier, they seek ways to grow their money.
They invest in stocks, bonds, and real estate; among other things.
They don’t just earn money and let it sit there.
I look at their bank accounts as a Ferris wheel.
Money gets deposited and the account stops momentarily.
Then it quickly begins moving again.
The more money they earn and save, the more assets they can buy.
The more assets they buy, the longer their Ferris wheel keeps moving.
9) Avoid Liabilities
Anything that takes money out of your pocket is a liability.
Rich people and liabilities are enemies.
They don’t go hand and hand and want nothing to do with one another.
Going back to #3, being frugal avoids additional liabilities.
A mortgage, car payment, and any other expense are liabilities that one should try to eliminate or at least minimize as much as possible.
However, once you’re rich and you’ve learned how to remain financially free, it’s safe to purchase a home or nice car as a reward for your hard work.
What you don’t want to do is buy a ton of homes or cars (additional liabilities) that you don’t really need, unless of course you’re going to rent out those homes and cars.
You follow me?
If you buy a home and rent it out for double the amount of mortgage due every month, then that’s not really a liability, it’s an asset.
The home is getting paid off on its own by other people.
And even though it technically counts as a liability, the profit you earn from renting it out is free money in your pocket every month.
You simply pay the mortgage and pocket the rest of the cash.
Yes, when you pay off the house, you’ll still have to pay property taxes.
However, the amount of money you’ll receive from rent (Assets) will outweigh the amount of money you pay in taxes (liability).
So let’s say I rent out a home for $2,000 a month but pay $2,500 annually in property taxes.
$2,000 rent x 12 months = $24,000
$24,000 – $2,500 = $21,500 profit
Now you tell me, is that really a liability or an asset?
However, this is a whole different topic for another article.
In this article, I recommend two amazing books in step #5 on this topic.
So when it comes to rich people, unless it’s a liability that will earn them money in the future, they stay away from it.
If you’re paying rent right now, guess what?
- Paying off someone’s mortgage
- It’s already paid off and they’re enjoying your rent money every month to do what they please with it.
But don’t worry, you can be in their same shoes if you do things right.
10) No Days Off
Most people look forward to the weekend the way a kid looks forward to his birthday and Christmas.
Rich people look forward to tomorrow.
Whether today is Monday, Friday, or Sunday; it doesn’t matter.
They’re always ready to work.
Vacation only crosses their mind once they’ve successfully completed a project.
For example, after I released my eBook Mr. $100, I took a week off.
I live in Miami, FL so I spent time at the beach relaxing my mind.
But that was only once the eBook was finished and released.
Money was getting deposited into my bank account as I heard the waves of the ocean splash and felt the sun heat up my skin.
That’s how you spend a vacation, relaxing while getting paid.
There’s work and there’s reward.
Each time you successfully finish a project, you earn a vacation.
That’s a rich person’s mindset.
So as you see, rich people do things differently and it’s why they not only get rich, but remain rich.
What are you going to do today and tomorrow?