Money is the ultimate problem solver. Though it isn’t everything, we can surely do a lot with it. Do you want to know the secrets of the rich?
Many young entrepreneurs these days wish to learn how to be rich and successful. But the biggest secrets about how to accumulate indestructible wealth lies with the elite members of society. And perhaps they don’t want to share their secrets with anyone.
According to Credit Suisse, about 1% of the global population holds more than half of the world’s total wealth.
This makes about 80 million rich people holding in their hands more than half of the acquirable wealth on this planet. Talk about inequality and all the prominent social issues that this reality creates. This indicates that there are several milestones and secrets of the rich.
However, one thing remains true. It is possible for anyone who belongs to the 99% to make their way up to the top and be one of the one-percenters! You could be 80 million and first!
If you are wondering how to be rich and successful, you are in the right place. Here are some of the hidden gems of avoiding debt and gaining financial freedom. Take note of these 5 financial secrets of the rich and wealthy.
5 Financial Secrets of The Rich To Become Wealthy
1. You Should Not Be Just Relying On Your Salary
According to a report published by The Guardian in 2018, about 80% of Americans live from paycheck to paycheck.
One of the key financial secrets of the rich is to create independence from your monthly salary.
Stop living from paycheck to paycheck.
2. Invest As Early As You Can!
Investing might seem to be such a “grown-up” matter – to start investing. But actually, the earlier you do, the more rewarding it will be.
This is true for a lot of millennial billionaires such as Scott Daniel Duncan and Tao Wang, who not only took advantage of their young age to maximize profits from investing but also took the time to learn and master the market trends.
No matter what the news says about how bad it is to invest at a certain time, live by what the American billionaire and investment expert Warren Buffet said: “The best time to invest is when the market is open.”
3. Practice Delayed Gratification
The term refers to putting off spending on something pleasurable at the moment to generally gain something more fun and rewarding at a later time. It’s all about resisting temptation.
According to data published by the US Consumer Financial Protection Bureau (CFPB), of the $10 trillion US debt in 2018, $830 billion accounts for credit card debt.
Living outside of your means is a dangerous thing, and impulsive spending is one of the most harmful ways you can damage your financial well-being – the consequences of which can be suffered long-term.
Practically, this could mean canceling your credit card or avoiding using it if it’s not a matter of life and death situation. Try to skip expensive vacations, or break the habit of splurging on pricey restaurants.
We all know that Warren Buffet still lives in the old house that he brought for less than 35,000 dollars. Practicing delayed gratification is indeed a secret of the rich and is a vital habit you must cultivate to be wealthy.
Delayed Gratification does not only apply in keeping good credit status but also in saving up enough money to invest. A $10-dollar savings daily might not seem like a big deal, but over a year, you get an extra $3,650 cash – how hard is it to find that money these days?
The point of this principle boils down to an old saying that goes, “Money saved is money earned.”
4. Act-On Your Ideas, Work On Your Vision!
Studies show that people who write down their ideas on a piece of paper have been more successful in pursuing them. This is in comparison to those who had brilliant insights but just let it slip off their minds.
Hundreds of billionaires who came from humble beginnings such as Mark Zuckerberg, Jack Ma, and Michael Dell, would tell you that acting on your vision and persistently pursuing something you care about is among the ultimate financial secrets of the rich.
Owner of the Dallas Mavericks and billionaire, Mark Cuban, says it in a nutshell, “Sweat equity is the most valuable equity there is. Know your business and industry better than anyone else in the world. Love what you do or don’t do it.”
5. Get A Good Financial Mentor!
No one has a monopoly on financial wisdom in this world. The chances are, as you go on your different ventures financially, you will encounter many unexpected twists and turns.
When this happens, lessons from experiences are valuable. If you want to know how to be rich and successful, get yourself a good financial mentor.
Even multi-billionaire Bill Gates subscribes to the idea that relying on a friend for a piece of business advice is not a smart move because a friend will tell you what you want to hear. In contrast, a business mentor will tell you exactly what you need to know.
Seasoned and successful business people and finance professionals can be great resource persons. They can guide you and keep you from making costly mistakes.
Everyone knows it! What we think is the financial secrets of the rich are not entirely secrets at all. All the information such as these 5 above is openly available to everyone. However, there is no one-step guide to being an instant millionaire. What works for one does not guarantee that it will work for many.
The truth is, even billionaires will tell you that the financial secrets of the rich are still hard work and clever application of the abundant information and strategies to achieve your goals.
Keep the tips and financial hacks discussed above as you journey towards being one of the world’s one-percent!
Key Takeaways On The Secrets of Being Rich and Successful
- Using the right investing hacks and wisdom, anyone can get rich.
- Try to diversify your income by investing from the very beginning.
- Take steps to create independence from your monthly salary or paycheck.
- The best time to invest is when the market is open.
- Practice resisting the temptation to buy unnecessary or luxurious items. In other words, embrace delayed gratification.
- Love what you do or don’t do it.
- Spend time working on your vision and dream.
- Remember, lessons from experiences are valuable.
- Take guidance from seasoned and successful people in business or finance professionals.
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