Perhaps it seems that rich people know something about money that the rest of us don't know! However, this does not mean that the secrets of wealth are a mystery. They are merely golden rules for wealth acquisition, development, preservation, and prudent investment. The key to start building wealth is to see how other rich people begin their journey to success. Keep an eye on the behavior of any millionaire in any field because that is what led him/her to gain his/her fortunate.
If you aspire to become a rich someday, these are seven
things that every modern millionaire knows, and you can use them to build your
own wealth:
1) You Cannot Be Rich Only by Relying on Your Salary.
No one denies that you can raise in your career to a certain
level but at some point you will have to retirement and the growth of your
income will stop. Wealth people know that the best way to increase your wealth
is to make your money work instead of you and for you at the same time. The
author of this incredible book “Rich Dad Poor Dad”, created his fiscal
philosophy on this strategy.
The best way to get rich is to establish a path which will
provide you with certain income continually. These monies may come from stock
market, rent a property, business income, or any businesses that you do not
have to do on a daily basis. Before you take this path. You should learn how to
manage your money effectively.
2) Wealth Needs a Mindset That is Very Different from that
of an Employee.
The truth is, the main job for the employee is to develop
the business owner wealth. So, if you're thinking about being rich, start
thinking of creating your own business now. Keep your day-to-day job, and start
applying the first steps of your own business and create a solid foundation for
it. One of the wealth secrets is to find a job to learn and develop
experiences. Do not make your goals from your current work is only earning
money.
“Many of middle class individuals believe that it is a huge risk to create a private business” said financial analyst Robert Wilson. While the rich people understand that the greatest risk is to allow your manager to decide how much your salary is because he does not care about your life goals. The author of the “Rich Father Poor Father” book confirms that it is better for a person to start his or her own business and go bankrupt before he or she is more than 30 years old. Because people can quickly recover from their adventure in that age.
One thing you might not know about the wealthy people and businesses is that they do not always have enough money. It may seem strange to you, but it is the truth. Even if they own millions, they will never have enough money. Do you know why? Because the next idea will inevitably need more money than the previous one. So, they are skilled at financing their projects from the pockets of others! This is another secret of Millionaire.
Use of the other funds (investors/banks...) to develop financing multiple projects and investment is the smartest people strategy to create stable cash flows and achieve financial freedom that enable them to retire early.
Of course, in this step there is a huge risk, but remember what Warren Buffett said: “the danger comes from not knowing what you are doing.”
4) Write Down Your Ideas and Goals.
What distinguishes the successful people is that they write their ideas and goals. You can also confidently head toward your financial success if you have specific goals and clear vision. You need to buy a notebook to arrange your different ideas.
Thomas Corley, author of “Rich Habits” says that: 67% of the rich write their goals and 81% of them make a list to arrange their business. If you want to start your journey in the right path, you should write your goal on paper and plan to reach it.
5) Understand the Difference Between the Value and the Price.
The price is the amount paid by the buyer for getting commodity, while the value is the benefit received after the commodity is acquired. What most people do not realize is that “price” is what a person pays for this amount (for example, 6 hours of work/full salary…), and is it worth paying for the value that he or she expects to receive??
Price and value are varying from a person to another one, even though the commodity or the service is the same. “Price” is the effort (physical or moral) that each person makes to provide it and it differs from a person to another. People have different perceptions of the value that they will receive from the same commodity/service. That depends on the variety of criteria and priorities that different people have. One secret of the rich’s wealth is that they look at value, not at price. So, their financial decisions are wise and intelligent. Your deep knowledge in the differences between “price” and “value” will help you raise in your financial issues.
6) Don't Waste Your Money.
Life standards are upside down in these days. Be careful to
fall into this trap, which has made most people do not progress financially. No
matter how high your income is, you will lose a lot of money if you keep
attention of other people opinion in every aspect of your life. The majority of
rich people do not spend their time and their wealth in unprofitable things.
They know that they are successful, so they are not interested in what others
think about them.
In fact, many rich people would not have been rich if they
spent their money, which they earned by facing many hardships, on buying things
that other people buy. Keeping the normal lifestyle without any exaggeration on
expenditure is one of the America’s biggest wealth secrets according to “The
Millionaire Next Door” book. Spending your valuable money to look rich before
being truly rich, is the shortest way to destroy your main goal of gaining
wealth. So, if you want to make progress on the financial side of your life,
you should avoid most of the bad behaviors and habits that crack your income.
7) Time Factor is Important.
No one can expect the future of the market and what will
happen tomorrow. Rich people know this point, and they don't try to imagine
themselves as successful traders/speculators.
“one of the most important factors is the whole time and not
just the time in this moment,” says a finance planning director who managing
more than $10 million. The majority believe that choosing the right moment for
investment is the key to wealth. “The rich know that time and relatively stable
income are the most important factors in the capital growth.” This may seem
illogical to you! However, the path of wealth begins in the unpopular style of
buying and keeping.
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“Before you can become a millionaire, you must learn to think like one. You must learn how to motivate yourself to counter fear with courage.” — Thomas J. Stanley
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