Do rich people know things you don’t from being at the top—or do they have it because, to get to that level, you need some inherent understanding of the way the world works?
It’s a bit of both.
You need a foundation to get there, but once you’re there, you’re privy to an abundance of information that helps you move up even faster.
Luckily for us, by working closely with these people and being kind enough to pass their knowledge down, we can put together the blueprint for being rich.
Keep reading to find out 15 things rich people know about the world.
Don’t worry if you don’t feel like reading; you can enjoy the video below or watch it on YouTube:
1
You’re never going to get rich working for someone else
Last week, we wrote an article on 15 high-paying jobs.
Every job on that list yields an annual salary of more than $120,000.
That’s a decent amount of money, but being rich is about more than money.
It’s about having freedom.
The freedom to go on holiday right now if you wanted to, or the freedom to buy what you wanted if you liked it.
When you work for someone else, you’re constrained by their rules.
One thing rich people know is that if you want to be rich, you have to be in a position to make your own rules.
2
Time is money
We say this all the time because we want you to understand that while you’re driving to the store, shopping for groceries, or mowing the lawn, you could be making money.
You shouldn’t only be making money when you have time.
You should be making money while you’re staring at the wall (if that’s what you want to do).
Rich people know that the more ways they can make money in a minute, the more freedom they have to do whatever they want.
They know that even though they’ve spent money on a fancy dinner, in that time, they’ve made more than they’ve spent.
3
Despite having freedom of choice, you must still choose your work
This is the kicker.
Being “rich” isn’t an endgame. It’s just the beginning of a new level.
Even when they have the freedom to do whatever they want, they’ll still choose to sleep under their desk and shower in the office when there’s a big deadline looming.
At some point, it’s not even about the money; it’s about the achievement and the thrill.
If you can shift your mindset to seek the thrill along with the money, then it will be easier for you to give up a night out drinking with friends to focus on your side hustle.
4
You need to be more delusional than practical
Think about your top five or 10 favorite entrepreneurs.
People who are rich in your eyes.
Go research their come-up stories and you’ll find some mad adventures.
Taking insane risks, being obsessed with a ridiculous idea, and working behind the scenes on something for years while everyone thinks what they’re doing is a joke.
There are few practical stories from rich people when they’re starting.
They’re all paragliding off mountains with no training.
Sometimes they fall, lick their wounds, and hustle their way back up, sometimes they manage to fly.
You need this absurd, blind belief in yourself.
It’s why it’s easier to take these risks when you’re young and don’t have anyone depending on you.
5
Wealth accumulation takes time or luck
They know that wealth accumulation takes time or luck, and luck will find you while you’re working.
The average age of most millionaires is 57 years old.
Of the 3194 billionaires in the world, nearly half were between 50 and 70 years old. A clear majority of the world’s billionaires are men.
It may sound like there are a lot of young millionaires, but that’s only because they communicate using mediums we’re familiar with.
So know that accumulating wealth can take time.
Just because it didn’t happen immediately for you doesn’t mean that you should give up.
You might have to work at it for two, three, or four decades.
At some point, it’s going to pay off.
6
You’re not going to get rich only by chasing the money
If you only have the numbers in your mind, you’re going to take opportunities that will increase the numbers quickly, not opportunities that will provide a higher, steady stream over the long term.
Let’s say you have a contract with a small company to make $15,000 in a month.
At the same time, you’re offered a contract with a larger company with multiple branches to do a small amount of work, with the possibility of more, but that’s offered at $5000 over four months.
You want to go on that holiday and would much prefer to do a lot of work quickly.
That makes total sense and there might be a right or wrong decision, but it does show you that you’re only chasing numbers when you also need to be chasing longevity.
Keep both of these things in mind when you’re making decisions, and the direction you choose will be more well-rounded and better thought out.
7
There is no such thing as retirement
Rich people don’t retire.
They may shift their focus, but the idea of sitting at home on the porch day after day is boring to them.
There is always more to conquer, and there are always challenges to go after.
They may take sabbaticals and decide on the next venture, but full-out retirement?
Not going to happen.
8
Life gets boring when you have everything
This is one of the things only rich people know about.
So you have to find something new to be obsessed with, whether it’s yourself, your children, or your company.
It’s going to be unsatisfying when your obsession is material things and you can get whatever material thing you want.
You keep life interesting by being obsessed with different things, no matter how bizarre they may seem to other people.
9
You have to make a conscious decision about the kind of rich person you are
You’re either going to be the type who displays your wealth or the one who shows that they have so much they don’t care about flashing it in people’s faces.
Think Kardashian-rich with gaudy houses, customized luxury cars, and drippingly expensive brands versus Zuckerberg-rich, walking around in sweats and driving a Honda Fit.
For the former, your wealth is often tied to your display of wealth.
You make money by showing that you have money. You believe people will invest in you because you’re rich.
With the latter, your wealth is built on your underlying influence, which you don’t want people to notice, so you tone it down to blend in.
You have to choose what kind of rich you’re going to be and then maintain that persona or brand to be considered a reliable investment.
10
Your personal home is not an asset
This is more foundational knowledge than something you learn once you’ve “made it.”.
Aspiring to own a home is great, but you have to know that if you buy a home and then move into it, it’s not an asset.
You’re losing money from it, not making money.
It’s a better idea to buy a home, rent it out, and then rent a much cheaper apartment.
Especially if you’re young and single.
You don’t need to live in a big place, even if you can afford it.
Even if you buy a place and then stay with your parents for a few years, you’re turning your purchase into an asset.
11
You must set up other income streams as soon as possible
The initial setup of other income streams takes some dedicated focus and time.
It’s better to set them up when you’re young because you have more time.
Ideally, you wouldn’t be working yet so you’re not jaded and exhausted when you’re working on it.
If you could do it while you’re still studying, great.
Your brain is wired for action and your body isn’t tired from working for someone else for hours.
12
You’re not going to get rich spending money on yourself
When you’re working towards being rich, spending below your means is essential.
You’re not going to get rich if your expenses go up along with your income.
Influencer culture has made us believe that we can buy whatever we want and still be rich.
We see these ordinary people making thousands with a single post, buying whatever they want, and having influence over thousands of people.
The truth is, to get there, many influencers had to go into major debt that they struggled to pay off even once they were earning a decent amount.
Many of them also already come from good socioeconomic backgrounds.
Get rid of the idea that you have to craft an illusion of wealth to be wealthy.
13
You must diversify your investment accounts
Here’s some more foundational knowledge because, of course, the mega-rich already know this.
But you’d be surprised at how many people have made the mistake of making risky investments and losing everything.
It’s okay to take risks, but make sure that everything you have doesn’t live in one account.
This may seem like common sense, but we’ve seen too often how people lose everything when a company goes bankrupt or they make some bad decisions with their money.
Even if you’re investing a few hundred per month, it should be allocated to at least a couple of different areas.
14
Donating to charities is also a financial benefit
It feels a bit callous to put it this way, but in addition to donating to charities being a good deed, it also helps you financially.
In many countries, when you donate to a registered charity, you can submit the tax receipt you receive and receive a tax credit, often up to 50% of your donation.
You also save on capital gains.
The rich don’t just donate out of the goodness of their hearts; it’s good for their wallets too.
15
Hire coaches and advisors to help you
Even if you’re rich right now, working with a financial coach for a few sessions will be incredibly helpful.
It’s a great investment.
The rich know that there are experts who enjoy learning about these things and keeping up with the latest trends and it’s easier to learn from them than it is to do all the research yourself.
Even if you’re still building your wealth, hiring a good coach or advisor within your price range is going to make a major difference in your life.
If this is a little out-of-reach for where you are now, that’s exactly why we’ve created the Alux App – it’s a high-performance coach right in your pocket.
We paid the experts on your behalf; more than a million dollars have gone into the Alux app experience, and for $100 per year, you’ll get top-level mentorship to level up your life.
Don’t waste any more time and get started today with your 7-day free trial!
This concludes our insightful trip through the things rich people know about the world. Everything in this article is a gem knowledge-wise, so take the time to thoroughly read and assimilate what you’ve learned. See you next time!