What’s something wealthy people know that normal people should know?

By | July 23, 2018

From networking with several clients and business associates, I would say that wealthy people have some great characteristics that normal people could utilise:

  • They don’t talk about people, they talk about ideas, and take action
  • They read a lot, and are aware of the latest current and economic events
  • They know finance extremely well, and can read a P&L and B/S
  • They know their niche well, and most run successful businesses
  • They have multiple streams of income, often from the same niche. It is far easier to scale faster when the investments are locked in up front, and small tweaks generate massive spin-offs.
  • They take control of their own destiny and make things happen, rather than wait for year end bonus and complain if it does not happen
  • They take good care of themselves, and their families, in fact their family becomes a priority
  • They are close to their children and guide them well, mentor them, and give them all the tools to succeed in life, from the best education, sports participation, communication, love and most importantly their quality time. Seldom do they spoil them, and the children understand the value of education, time, money and productive life hacks
  • They pick their friends wisely, and do not share mundane gossip. They have friends for business, sports, networking, socialising, and all exist in silos, as, and when needed.
  • They know what they want, are laser focused, and play their best game, as they know time is limited, and they want to have as much fun as they can, to live happy fulfilling lives. If it means that they shout a few extra rounds, or pay for dinner, its a small ask, if the company is good, and they are having a great time
  • They are past caring about material things e.g. fancy house, fancy cars, and keeping up with the Joneses. They don’t have to prove anything to anyone, they know that if they really want something, they can get it, but it may not be something that they really care about. One client of mine can buy a ferrari outright for cash, but he could not be bothered washing it, or keeping it in his garage, so why bother. Another guy I know buys seven shirts and seven jeans at the new years sales and wears it all year long. He also buys five armour jackets with hood and keeps them for a few years. Very practical he says. (Think thats what Steve Jobs did as well – buys the same coloured shirts and jeans in bulk)
  • They say NO easily. They don’t do things to please others, especially as far as business is concerned. If it does not make business sense, why do it. They would rather take a text than a call. Takes less time, especially with auto responders.
  • Decisions are made very quickly, and if need be, they empower their people to make key decisions without micromanaging.
  • They know that the biggest skill for success is selling, communicating (written and oral), and basic maths done quickly.
  • LEVERAGE is their most powerful tool – money, people, time, equity, cashflow, assets (OPM/OPT – Other peoples money, Other peoples time)
  • They don’t do meetings, especially coffee meetings. First, chat on the phone, if it deserves a meeting, so be it, with a whatsapp or text agenda of things to be covered and a maximum half hour meeting. Everything can be done in half an hour. Heck some buy houses, from inspection, to going unconditional in half an hour.
  • They see the positive in everything. Even if there is bad news, there is a positive spin to it, and it is taken as a learning exercise
  • They network extremely well, and have “a guy” for everything, eg. power team for business, attorney, doctor, car guy, material suppliers with wholesale prices, key people running their businesses. They know which horses to pick and back, who are there for the long race.
  • Wealthy people have a plan. They live on a budget, they live on less than they make, they make wise purchasing decisions and invest money for their future retirement.
  • They do NOT keep up with the “JONESES”. In other words, they do not try to compete with other people about perceptions. They do not need to show off their “highlight reel” like many people do on social media and for the most part, they don’t really care what you think. They do what is right for them regardless of what others think.
  • Never buy depreciating assets on credit. Houses yes. Cars no. Motor homes and boats, what the hell is someone thinking?
  • They know If you want more income you need to become more valuable. After you finish school your education is up to you.
  • Before investing educate yourself. Educating yourself after you invest can get really expensive.
  • Everyday take one concrete step towards your goals. You don’t need to hit home runs. Singles are fine. A double? Huttah!
  • Realize, after a certain point, more wealth doesn’t bring more happiness. Figure out where that point is for you. Don’t waste your life chasing a mirage.
  • Enjoy the journey. Be happy everyday. Walk it with those you love. It goes by faster than you can ever imagine. And frankly you won’t be much happier then than you are today.

Leave a Reply

Your email address will not be published. Required fields are marked *