Now this is a great question that I’ve been pondering for a while. Even as a child I often wondered “if rich don’t save, how do they become and stay rich?”
I didn’t care about their fancy clothes or cars. I could care less about how many bedrooms they had. Heck, I struggled keeping my one bedroom and my one bed made up each morning that I really did not want to have more than one. Plus, I only have one body, so in how many beds can I sleep at the same time, anyways??
As I dug in deeper to find my answers of how riches are made, I had discovered that there are two ways that rich become and stay, well, rich:
That’s it! Two simple activities that have helped a rich person after a rich person get there and stay there.
And, many will tell you, it’s easier to get rich than to stay there!
Job 1, Get Rich!
First order of getting rich business is business.
Just about any person that you know of or have heard of that is well off has gotten there by building their own business.
The industries are far ranging from transportation to services, from food to waste management. So, it’s not necessarily the industry in which they started but rather a formation of the business itself, focusing on providing solutions to the problems for the masses.
The objective of any business is to generate profits.
Obviously, we want to have a good value when we make a purchase of their products or services. And we want the business to be ethical in their dealings. Or at least for the most part.
I say that as there are many businesses that are not completely ethical. A quick internet search on non-ethical yet profitable businesses will give you a plethora of results that you can read upon. But that is not what we are arguing here for.
Overall concept is to create a business that provides for large cash flow and income generation.
Many of the small business owners understand that and they are really good at focusing here. But the rich don’t simply stop here. As they understand that the money must be invested continuously to achieve a compounding growth.
Job 2, Stay Rich!
Smart business owners take a portion of their business earnings and reinvest in their business to grow them and generate more money. By continuously reinvesting in their business they grow their workforce, their product line, and customer base.
Really smart business owners take a portion of their money and start making investments outside their business into assets that will continue to grow in value and provide cash flow as well as reduce their expenses. Number one expense being taxes.
One of the top investment assets that rich people make is real estate. As it offers the above-mentioned benefits: additional cash, asset growth, and expense reduction.
They also take a very small amount (proportionally speaking) of proceeds and speculate in the market, in items such as art, natural resources, private placements in other businesses, commodities, etc.
So their second order of business is creation of net worth growth business.
Job 3, Think Differently!
The rich focus on the long-term success and do not worry about the short-term noise. They are not worried about what is happening today, but they look for things as they can become and develop some 20+ years in the future.
They are diligent. They are hard working. And they are not afraid to take calculated risks for large rewards that make sense in the long-term.
They are willing to forego enjoying the life today and make many sacrifices in the moment in order to create a lifestyle that will sustain them and their families for generations to come. They pay the price today as they understand that the price must be paid. Small today. Large tomorrow. And they chose to pay today.
So, where do you stand? Are you a long-term thinker?
If you are willing to make some sacrifices today, to work hard at building your business and spend time and money to learn how to grow your business and how to invest wisely, you have a great chance to join the ranks of the rich. To learn the way of the rich, take one of our courses.