Have you ever wondered to yourself why do the rich people get richer while poor struggle to make ends meet? One of the main reason is because rich people spends their money on assets and not liabilities and not expenses. And let’s talk about 7 things that rich people buy that increase their wealth.
Basically this breaks down into 3 parts. 1. rich people buy assets that actually increase their wealth 2. middle class people buy liabilities that they think are assets 3. poor people spend their hard-earned on expenses.
#7 precious metals
Most of us probably heard about gold, but we do not understand how valuable it is to most rich people, because gold was the currency for much of the world before digital currency, cryptocurrency or physical dollars existed and gold is still backed by our traditional currency. That is why rich people like to hold onto gold because throughout history, gold has been one of the most recession proof assets that is possible to own.
#6 Education
It doesn’t mean collage or university here. Education and self education is something that rich people buy all the time. Whether they purchasing mentorship, attending self education class, seminars or networking events. Rich people understand that they can get more out of their investment into education than the cost of education itself. And it doesn’t even mean only self education. Rich people understand that it’s worth it to pay for expertise, in order to hire best preparation tax person, the best accountant or whoever best of the best. Because it education yourself will save you money in long term. Also, having a long term mentality is common for rich people.
#5 An audience
Audience is the new form of rich. Recently in the past, how you became rich and wealthy was by owning the most stuff. Owning a land, most buildings, real estate and things like that. But in today’s day and age, people who are rich are the people who have the most attention, reach and audience. That means people who have decent amount of subscribers on YouTube, big followers on Instagram or other social media. Those people can reach with any type of offer that they’re trying to sell and having power on internet, which is called attention currency, is the new form of rich in this generation. So buying an attention with paid traffic and buying an attention to actually build up your social media and followership is something rich people understand worth buying.
#4 Paper assets
Paper assets means stocks, bonds, mutual funds index funds and so on and these are the things that you can actually invest into with your money that are going to generate your passive income without any additional effort. For example, if you had bought Amazon when it first IP owned for $14 or something, each share of Amazon now is worth close to 2 thousand dollars, which is ridiculous return. So if you pick the right stocks and if you have some type of information that you know that general public doesn’t know and you have faith, that’s go sign. Rich people leave their money in these high performing stocks and watch them just continue to grow.
#3 Equity
This can be bought or created in a company that you actually found, but rich people understand that ownership is one of the things to actually accumulation wealth. So that’s why rich people so careful giving away any percentage of the equity in a business or a patent or copyright or an idea or something that can be licensed down the road or sold off as an asset itself. Rich people understand that being a owner of a company or a partnering with someone who’s starting a company and assuming some equity percentage of that company is one of the most valuable thing.
#2 Real estate
Real estate is not the only if not the most popular asset classes for rich people and most wealthy people either make the primary portion of their money from real estate or they park a lot of extra excess money into real estate whether it’s revenue generating real estate like rental properties or or it’s buy and hold real estate like houses in nice neighborhood inside of affluent cities.
#1 Businesses
Majority of all wealthy people have made their money and continue to make their money is through businesses that they actually create. It’s impossible for the most part to become truly rich and financially free being unemployed, so you have to actually understand that rich people are always the ones who assume the risk and create the companies and they’re the ones who actually make the most money because they’re doing the most work. And not everyone wants to take on all of that time and responsibility and risk to paying all of their employees and other things. Business is the number one cash generation tool that wealthy people use and equity and ownership of those businesses is really what catapults people into a millionaire, multimillionaire and even billionaire level. Most billionaires are billionaires because of their ownership of the companies that they take public.
