7 Things that Rich do different than Poor. Welcome on-board, lets help you put that extra buck in your pocket.
- Passive Income – Rich earn even in their sleep. Yes, they have a source of Income that puts Money constantly into their pocket even when they are not working. Passive Income of 1000 INR is worth more than 10,000 INR, how?, just imagine the time saved and the freedom gained. After all wealth is for ones Financial Freedom. One source of passive Income is by buying stocks that pays you dividends regularly (after every quarter or so). You can start with a small investment, all you need to do is open a Demat account with a brokerage like Zerodha and take it from there (check out our blog post on how to avoid investment mistake before investing, also follow this space for more tips and tricks)
- Keeping money is harder than making – Money management is not easy. The expenditure for majority of people grow proportionally with their Income. This is also the reason why almost all lottery winners end up spending what they have won. The urge to spend the money to show Rich than to be Rich is strong. Rich definitely know better Money Management than Poor. Once you made your first crore to make the second all you need to do is replicate. But how to save & invest and let your Money grow on its own is not something majority understands.
- Focus on Increasing income not cutting the cost – Yes, you heard it right. Rich don’t try cut the cost in small things. Majority will walk an extra mile saving cost rather than focusing on earning more. Instead of cutting cost every now & than, we urge you to first think like Minority and Increase your Income, so that you can afford all the nice things in your life. How?, May be learn a new skill that pays you more, or do some side hustle that help put some extra cash in your pocket.
- Over 50% of Rich earnings go to investments – Yes, Invest like crazy! If you want to be wealthy, you need to have a tight grasp on your savings & investments. You need to be able to park enough money (the more the better) in different assets. You may diversify your portfolio in assets like Gold, Real Estate and Stocks. If you want some quick tips on Investment do check out our very first blog here. Almost all wealthy people and brands invest more than 50% of their earnings. If you are beginner and don’t know where to start you may like to read our blog post here. To start Investing in Stock Market, you can open a demat account here.
- Don’t borrow Money if it is not to make Money – This rule applies strictly for the elites. Rich don’t borrow unless the money helps them make more Money. They won’t pay bank the interest unless they make their cut. By borrowing money like majority to finance your new house or buy a new car your making the Bank & Bankers wealthy while putting yourself in debt. Debt not taken for the assets that put Money in your pocket is useless. So think whom you want to make rich, yourself? or them?
- Multiple Streams of Income – To be wealthy you definitely need to have the money flowing in through multiple ways. A side hustle, a full time Business or job, a passive source of Income; you need to work hard to at least grow the 3 sources of Income. Multiple Source of Income also keeps you portfolio hedge against a Crisis. You are less likely to be victim of a Crisis, and more likely to be at peace. An Online side hustle, free lancing etc may come handy.
- Invest in self – Investing in self is one of the most underrated advice. Ever wondered why Successful people read more than an average person?, the answer is simple your knowledge = future returns, the more skills you know the greater the opportunity to multiply your Money. This is the same reason why a Businessman earns more than an employee, they have figured out a solution, they know the full breadth of the System and not just a single piece of the puzzle like the employee who may be specialized on a single task. So learn a new skill, or grab a book, even better listen to two free books of your choice here at Audible.
Lastly but not the least, if you want to know more definitely check out this video by Alux.com. This article is inspired by the same. While the opinion above is completely ours, the primary source nevertheless remains this video.
Thank you for reading. Do follow us for more. Together lets be Financially Free.