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Today, we’re going to be talking about the things that the Rich people do that the Poor & Middle class people don’t do
So you see folks, it’s on Facebook or Pinterest or Instagram or sometimes Twitter that you see it that rich people drive the nicest of cars like Ferrari, Bentley or stays in luxurious hotels or uses nice wrist watches or owns big beautiful houses etc.
I am going to be real with you, people do see all these good things that the rich people have but people do not care to see what got them there.
What do the rich people actually buy that got them there?
The one thing that the Rich people actually buy is ASSET.
The one thing that the poor & middle class folks buy LIABILITY.
Now What Are Assets?
ASSETS are income producing tangible or intangible resources.
Rich people buy things that would make them more money, things that would appreciate in value.
Examples could be piece of real estate like apartment building, it could be stock, it could be starting/buying a business etc.
Rich folks buy any asset that will put money back to their pocket.
Most poor & middle class people buy liabilities such as their homes, their cars and zero asset.
The poor folks actually thought their primary residence is an asset but the bitter truth is that it is a liability because any asset is supposed to bring you more money even when you’re sleeping. They pay mortgage monthly on their primary home while sleeping in it so it’s a liability.
If you look at the financial statement of poor & middle class folks, you will notice that they have a lot of liabilities with little or no asset.
Rich folks will buy asset first then the asset will later buy them their luxuries
Here Is A Perfect Instance
Poor & middle class only considers the cost of the thing they want to buy and they usually have this poor mentality in quote “Oh it’s too expensive, I can’t afford it”.
Whenever rich people want to buy something, they don’t look at the cost of buying it alone to determine if they can buy it or jump into conclusion without doing their detailed analysis.
Typically, rick people ask themself how can I make this thing make me money if I buy it?
Here Is A Personal Example
Before I got my first BMW SUV, I waited a while and I set a goal that instead of just buying a liability, I needed to buy an asset that would be bringing me enough cash flow that would cover the monthly expenses for my BMW.
So instead of first buying the BMW which would be taking money away from my pocket monthly, I said okay let me take a rich step, let me buy an asset first and when the asset brings me enough positive cash flow then I can go buy my luxurious BMW.
Yes, I didn’t just jump into conclusion to buy it or not to buy it at that time, I did my analysis and was ready to wait (patience) for couple years before buying my BMW SUV.
Think about it this way, even if I decided to sell the BMW or if the BMW breaks down in couple years after buying it, guess what I would still have my asset that would still be working for me – Here is the difference in the thinking of the rich people and of the poor people or middle class folks.
Rich people buy nice things as well. In fact they buy the nicest things but the thing is that they are patient to buy the asset first, they buy the investment first then buy the liability later.
Rich People Are Entrepreneurs Who Invest In Asset
Another difference between rich people and poor or middle class people is in the area of time.
Rich people buy time while poor or middle class people sell time.
If you think about the people that are struggling financially or employees, they sell their time to get paid based on the time that they spent working.
Poor & middle class mentality is this – how many hours do I have to work next week or next month etc to get so much to buy my car or to get my house down payment etc. Some of them do this analysis and put in extra time to get their budget met.
Rich people don’t do that, they buy time because time is the one thing nobody can replace.
The minutes you’re using to read this article is gone. You can’t replace it, I can’t replace it.
Yes, employee is replaceable, customer is replaceable, money is replaceable but time is not replaceable.
Nobody can create or manufacture more time but you and I can always make more money if we have the time.
This is the reason while time is priceless. Time is the most valuable commodity in the whole world.
I hate to waste people’s time and I hate people to waste my time. To me, wasting my time is worse than stealing my money because I can always make money back but the minute time is gone, you and I can’t get it back.
Rich people know that if they use their time wisely, they can make a lot of money and that is the reason why they buy time, they buy talent, they buy people that can help them save time, they buy people’s time to help achieve their financial goals.
Another thing about time is that as rich people think in term of return on investment (ROI) they also think about return on time invested (ROTI)
Whenever you invest your time doing something, always think about the returns you get.
Example, if I spend $30 watching a 2 hours movie in the Cinema, it is always in my consciousness that the movie actually cost me more than the physical $30, there is another cost for the 2 hours spent which could be $1000 or even $10,000s.
Not that I am discouraging people not to watch movies, I actually love watching movies myself and I believe lots of rich people out there do watch movies as well.
Rich people do ask themself if the time to watch the movie or the sport or the TV program or the new experience is worth the time because they know realistically that the time needed for those activities is actually worth more than the physical dollar cost.
Also, I am not saying you should always make money with every of your time spent but rather, always assign value to every of your time. There are some time that you spend with loved one, even though those hours would cost you money but you are consciously willing to spend/invest the time because of the value you attached to your family and friends.
Guess what, when you think of time this way, you will be more efficient and present in managing your time.
You got to value your time like the rich people. People who don’t value their time are less successful
To Wrap Things Up And Recap Guys
Remember these if not anything, the rich folks are patient, they buy time, they buy assets, they value and manage their time very well.
There are so many rich folks that had really work so hard and smart doing all these things for 5,10, and even 20 years.
If you’re just starting out and suddenly you make some good money, don’t get carried away to start having the image of a rich guy in your head and start spending your money flamboyantly on liabilities.
I bet it, if you do that without first buying asset, you won’t be able to sustain the flamboyant lifestyle and you would be poor at the long run.
Don’t get the big ego, don’t start to show off to your neighbours or family or friends that you’ve made it by buying liabilities.
See, you can only see the surface results or outcomes of the rich people’s investment but you don’t see the process of how they got there.
I hope this article has been able to reorientate your thinking for better – Starting thinking and doing things like a rich person as from today.
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