How do the rich and successful make their money

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.

So how can you build your own wealth?

Simply put, to become wealthy you need to make more money than you spend and adopt a Money Mindset.

1. Spend Less

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.

2. Earn More

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. 

2. Education and Money Mindset

Successful and wealthy people that make and retain their wealth tend to possess a couple of similar characteristics:

  1. They have perseverance and grit, they will fail many times however each time they stumble, they will dust themselves off, take the learnings and start again.
  2. They are clear on their purpose and their values. Whilst they may not know exactly how they will achieve their goals, they know exactly what they want from life.
  3. A successful person is a lifelong student. They continuously invest in training, coaching and mentorship as they know that there is always something to learn, develop or master.
  4. They are not afraid of what the neighbours think! They understand that what others think of them is NONE of their business. Everyone will have an opinion or judge you based on their own perspectives and it’s very hard to change someone else’s opinions so why bother?
  5. They are not afraid to take risks and make decisions pretty quickly.
  6. A successful person understands that they cannot do it on their own and will surround themselves with a power team. i.e. specialists who are better than they are in their expertise.
Lisa O'Reilly LOR Property Solutions providing alternative investment opportunities

LISa O'Reilly - Chartered Accountant, Property Investor & Trainer

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