Most people desire to be rich in life, or at least have enough money to foot their daily expenses. However, only a few people are able to attain a good life, and most are those that die in poverty.
And then there’s yet another group of people that attend school in order to find a safe and reliable job that would give them financial benefits and promotions. They get the money, pay bills and expenses, and then spend the remainder on a few other unimportant things.
Throughout their working lives, this cycle manifests itself, effectively denying them the chance to get ahead and achieve financial independence.
Robert Kiyosaki, in his book Rich Dad, Poor Dad, argues that having your money work for you is the surest way to financial prosperity, rather than working for money throughout your life. The author’s father died poor, and with lots of bills to pay. He writes that he noticed that the poor father was poor not because of the significant money he earned, but because of his actions and thoughts.
That said, you may ask: How do the wealthy stay wealthy? Well, there are things that the rich teach their children that the poor do not.
How to Become Rich
If you want to become rich, it’s never too late, and it is pretty easy than you may realize. But first, you need to learn the secrets of the rich – what the rich don’t want you to know.
Here are the secrets to building wealth that the rich won’t reveal to you.
1. Money Should Work for You, Not the Vice Versa
The rich are unlikely to tell you that you should have money work for you, and not the other way round. What we are trying to say is that you should try to invest, so that you will have somewhere to draw income even in old age.
But first of all, you need to control fear and desire. You may have realized that the poor work extra hard because they can’t imagine not having money, and when they are paid, the desire to buy what they can kicks in.
Fear is essentially what makes us get up early in the morning, and desire is what drives us to buy expensive things as pay rises. To control these two emotions, you need to learn how to direct your positive energy and the money you get in the right direction. You are not limited to chasing after employment, salary and security as this is working for money.
When you invest in say, real estate, you are sure to generate a good income until you die.
Despite the fact that it takes a lot of time and effort to become rich, it pays to invest a small percentage of what you earn now in opportunities that come your way.
In real terms, Robert Kiyosaki built his wealth around the concept that your money should work hard for you. How do the wealthy stay wealthy? Folk, you’ve got the answer already.
2. That Time is More Important Than Timing
The rich know that no one knows about tomorrow, and markets are bound to change often.
Time is more important to the success of investments than timing. Most of us believe that timing market moves is the secret to building wealth. The rich, however, understand that compound returns and time are valuable assets in wealth making.
It may sound counterintuitive, but if you are to grow wealthy sooner, you must adopt a buyer-and-hold strategy and avoid speculation. Do you get the idea?
3. Put Your Dealings in Writing
How can I spot a rich person? You ask. The simple answer to this question is that the difference between having an idea and writing it down on paper is what separates successful people from the average folks.
For most people, success is equal to wealth, which implies that it is the highest time you started writing down your wealth goals, whether small or large.
Creating a to-do list and writing down wealth goals are just a few of the best-kept secrets of the rich and successful people. That is how they build wealth slowly.
Another secret that the rich are unwilling to tell you is that an action plan must accompany written realistic goals. Now you are in the know.
4. Leverage Other People’s Money to Increase Your Wealth
This is yet another secret that the rich won’t reveal to an average folk. Do you recall the old adage: “It takes money to create money”? It may come across as an old-fashioned cliché, but in the secrets of the rich book, it is golden rule.
The key point is leveraging other people’s money to make yours. For example, a crafty person can approach banks and investors for money, and then use that money to contract workers to work for him. Such wisdom does not require you to be a superhuman, doesn’t it?
This strategy, coupled with cashing in on tax breaks and other tax laws that benefit businesses is a tested and approved formula to increase your wealth within no time at all.
So, whether you are flipping real estate for profits or you are just gathering finances to start a business, using other people’s money to lit your venture will certainly pay off.
Does this sound too risky? Well, experts say that you can make huge profits is you are ready and willing to take risks. Leveraging other people’s money is riskier than using your own funds to facilitate your business activities, but risks comes from what you are not doing.
5. Look at Value Over Cost
Now, have you ever realized that the three best friends to wealthy chaps are the accountant, attorney, and the advisor? Well, this implies that the rich tend to invest in law and tax code services in order to make complex yet prudent decisions.
One common thing with almost all of them is that they are never afraid to spend large amounts of money upfront in an effort to get such answers.
On the other hand, the average folks fear investing upfront in things that would finally benefit their ventures. It is even not uncommon for middle-income people to cut corners while trying to save money, yet they end up lacking results.
It all goes down to looking at value over cost.
6. Make Your Own Money, Not for Others
The entrepreneurial lot will tell you that it feels good being a boss to yourself. Employees work very hard, but it is the employer who becomes rich from those efforts. If you want true wealth, say goodbye to that 8-5 job and start yours.
Many a billionaire will tell you that they made their killing from businesses they started, or ones in which their families had a hand in.
The rich are unlikely to tell you to leave your comfort zone and look at things differently. For example, they will never tell you that starting a business is necessarily not risky and difficult.
The risky things in life include allowing your time and earnings controlled by a boss who doesn’t care about what you want out of your life. Never allow limiting mindsets to pull you back to poverty.
7. Limit Your Spending Habits
Did you know that poor eat a lot more as compared to the rich? If you were unaware of this fact, know now.
In real terms, most rich guys survive on a few clothes and small splurges whenever necessary. If you are concerned with making money, you won’t mind skipping a single plate and focus that energy into other important things.
You should always strive to look at saving through a different lens, right? Well, spending habits are what set apart rich folks from us.
Research shows that only 1% of workers save 30% less on eating, to direct more money towards retirement savings.
How can I spot a rich person? By their spending habits.
Make the Right Moves to be Rich
No matter how small or big your financial goals are, all you want is to become wealthy, right? Well, the secrets of the rich in this article are a sure way to get started. As you may have realized, to become secretly rich requires that you invest more time in thinking. Basically, our thinking is what separates us from our financial goals.
Ask many financial gurus and they will tell you that money secrets of the rich go down to living below your means, hard work and saving a lot.
However, the small percentage of the world’s wealthiest people will never agree with this because they would certainly feel like their secrets have been revealed to the world. You should never feel ashamed to live a modest lifestyle, because after all, your energies and efforts will be directed in the right direction.
So, if your life goal is to get rich, it will help if you started practicing these 7 tips as early as now.
What is the secret to creating wealth? It is no secret at all.