Let’s face it, you can be born into a rich family (silver spoon anyone!?) or you can create your own wealth. No matter which category you fall into, the rich value money the most! Money flows from those who value it least to those who value it most. So for someone that has inherited a lot of wealth, this can be lost very quickly if that person doesn’t value money.
According to a recent survey by Bank of America on the ultra-rich in America, 28% have legacy wealth and 27% are self-made with the remaining 46% somewhere in between.
This is good news for those that believe that they can never make enough money to be rich, that they just don’t have the upbringing nor the luck to be wealthy.
Simply put, to become wealthy you need to make more money than you spend and adopt a Money Mindset.
A lot of people live paycheck to paycheck, they prioritise spending over saving or investing. Holidays, online shopping, subscriptions, cars, iPhones, smartwatches and kids’ gadgets.
These are all nice things to have and some can argue that these are basic needs in today’s society. However, if spending on these means that you need to use your credit card, or you need to “borrow” from the emergency account or you cannot save/invest this month, then you are living above your means.
The rich may seem like they spend a lot, however in order to maintain their wealth they are living within their means. If they weren’t then their money would soon be gone.
According to Robert Kiyosaki, author of Rich Dad Poor Dad, there are 4 ways in which you earn money. The wealthy tend to be asset-focused Business Owners and Investors. The less wealthy tend to be income-focused Employees and Self Employed.
Most wealthy people are always looking to make their money work hard for them, i.e. create multiple streams of passive income, where the money still rolls in even when they sleep.
They generally earn their cash flow from their business (or businesses) and use the earnings from these businesses to invest in ASSETS.
Successful and wealthy people that make and retain their wealth tend to possess a couple of similar characteristics:
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