7 Money Secrets From the World’s Wealthiest People
“The pursuit of wealth is an art, not a chore.”
Ah, money, the magical elixir that can turn even the grumpiest of cats into purring kit- tens. But let me tell you a little secret: there’s a world beyond the endless nine-to-five grind, a world where the pursuit of wealth is an art, not just a chore.
Today, we’ll dive into the tantalizing secrets of some of the world’s wealthiest people. These are the folks who have mastered the art of transforming a dollar bill into a Benjamin Franklin origami swan.
Seize Wealth in the Middle of Chaos
“The time to buy is when there is blood in the streets” — Baron Rothschild.
Baron Rothschild was referring to what is now known as Contrarian Investing, meaning you go against the crowd or the market’s sentiment when choosing when to invest.
Warren Buffett also echoed those words when he said, “Be fearful when others are greedy and greedy when others are fearful.”
Remember, the worse the market appears to be, the higher the potential returns.
For example, are you old enough to remember the wild rollercoaster ride of the 2008 financial crisis? It’s the one that made investments do the limbo — “How low can you go?”
We fearfully watched our portfolios lose 30% or more. The 401(k) plans and IRAs dropped like they’d seen a ghost, giving retirees a good scare.
But here’s the twist: instead of keeping their cool during those bear markets, most folks turned into financial contortionists, which only made things messier. But, in the midst of all this chaos, there were a few masters of investing who thought, “Hey, opportunity!” They didn’t panic or sell in haste; they saw the stock market crash as their moment to shine.
Sure, investing during this time can be incredibly risky, especially knowing that double-dip recessions are a possibility. Still, the investors who can act amidst a crisis might snag some jaw-dropping rewards when the good times roll back.
“Historically, market panics can be a great chance for low-priced investments.”
Saving Will Make You Poor
The plain and painful truth is that inflation will eat up your savings.
If your money is just lounging in a savings account, it’s just there taking an eternal siesta. Think about it, you busted your hump to earn that dough, and now it’s sitting down doing nothing, giving you the permanent vacation routine. It’s time to put that money to work and send it out into the real world to do some heavy lifting. Let’s make your money hustle as hard as you do.
The folks who are really making it big got a different game going on — it’s called investing. That’s where the magic happens, where you’re not just stashing away cash under your mattress, but putting it out into the world, letting it work its charm, and po- tentially making more money for you while you’re sipping margaritas on a beach somewhere. So remember, saving might be for the poor, but investing? Well, that’s where the rich kids play.
Investing allows you to grow by growing returns on your investments, which often outpaces inflation
Your New Car is Keeping You Poor
“Rich people buy assets, poor people buy liabilities” — Robert T. Kiyosaki
In simple terms, an asset puts money in your pocket. A liability takes money out of your pocket.
Rich people put their money to work by buying assets and steering clear from lia- bilities. They buy things that can make their wealth grow, rather than draining the well.
Good examples of assets are:
- A business that does not require your presence
- Stocks
- Bonds
- Mutual funds
- Income generating real estate
- Royalties from intellectual property
Examples of liabilities are:
- Auto loans
- Credit card debt
Next time you want to buy something, ask yourself, “Will this make me richer or poorer?”
Let Your Money Make Money
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” — Albert Einstein
Einstein called it the 8th wonder of the world. Warren Buffett attributed to it part of the reason for his wealth.
“My wealth has come from a combination of living in America, some lucky genes, and compound interest.”
What is compound interest? It’s simply interest paid on interest. This means you earn money on your principal (the money you initially invested) as well as on the returns that were reinvested into your principal.
Time is compound interest’s best friend. The longer you let your money work its compound interest magic, the more it will grow. It’s all about investing early or plan- ning to stick around for a long time.
Here are the 7 top compound interest investments
- CD’s
- High-Yield Savings Accounts
- Rental Homes
- Bonds
- Stocks
- Treasury Securities
- Real Estate Investment Trusts (REITs)
Get off your butt and start compounding that interest now!
Give Them What They Want
“You will get rich by giving society what it wants but does not yet know how to get…” — Naval Ravikant
Here’s the scoop on creating wealth — it’s not about inventing the wheel all over again. Wealth creation is like a puzzle, and your job is to find the missing piece. It’s all about tuning into what society craves but hasn’t found yet.
Think about it — Steve Job’s smartphone idea revolutionized the world and put a ton of money in his pocket. He gave society what it didn’t even know it was missing.
So find a need, get creative, and be the one to meet it. That’s how you make the big bucks while helping folks get what they didn’t even know they wanted — and who knows? Your next idea might just hit the jackpot!
Your 9-to-5 Is Making You Poorer
“You’re not going to get rich renting out your time. You must own equity, a piece of a business to gain your financial freedom” — Naval Ravikant
The problem with a 9–5 is that once you’re off the clock, you’re no longer making money. Unless you find a way to make money while you’re sleeping, retired, or on vacation, you will never be wealthy.
This is where passive income makes its grand entrance and reveals itself as the solution to all your difficulties… because it truly is.
Don’t Flaunt Your Wealth
There’s a hot new trend in town, and it’s called “Stealth Wealth.” Forget those flashy Lambos, the bling-bling Rolexes, and clothes screaming with logos. They’re yesterday’s news!
The issue is that the moment some folks strike gold, they can’t resist the allure of fancy cars, mega-mansions, and fast cars. It’s like money is burning a hole in their pocket, and they become obsessed with spending it all.
But here’s the problem — most flashy things are nothing but liabilities that only take money away from your pocket.
Stealth Wealth is about keeping it real. You’re still rocking that trusty old Toyota, even though you could totally go for a Range Rover.
Simple living is the name of the game, and it’s all for one big reason — building up your wealth stash.
When you got stacks on stacks, those flashy toys won’t even be on your radar anymore.
I know I’ll be implementing all these secrets. I hope you will, too.
Either way, happy living!
