It almost feels like the rich know something that us common folk don’t. If you think this is,
I’d say that you are onto something. With the ever-increasing gap between the rich and poor,
there has to be something at play other than ‘luck’ and ‘hard-work’. And there is. You could
say that the wealthy have some financial life hacks that they abide by. And in this video,
I’m going to give you some of them so that you too can be on your way to financial success.
But before I get started, please make sure that you’ve subscribed
to our channel and don’t forget to hit that subscribe button.
#8. The rich network with other successful people
Networking comes with a lot of benefits, which the rich know. Networking is time well spent since
it lets them meet new individuals with innovative and thought-provoking ideas and keeps their minds
on success. Rich people usually network with other wealthy people who also possess ambition,
talent, and, most importantly, the potential to achieve extraordinary achievement or who
already have success. This is what helps them get richer, as they end up making more connections
and even more people to do business with who are also in the same business line as them.
This isn’t just something for the rich – you can also start networking with people today. If you
start networking, you'll get better connections, which can lead to better prospects. Hence,
it goes without saying that, because of their greater connections, the wealthy can continue
to amass wealth through better investment opportunities. So, whenever you are in a
crowd of people (hopefully successful people), learn to sell yourself and exchange contacts,
as you never know what the future holds for you and if maybe that one person may,
later on, come to help your big time in life. I mean, who wouldn’t want their contact list
filled with influential and high-end people? You don’t need to go to fancy
black-tie events to connect – you can go for a simple cup of coffee and connect that way
#7. Technology has altered the nature of work.
While it has created many opportunities for the highly-skilled, the digital revolution
has also been the reason for many losing their jobs. Jobs
ranging from clerical labour to ordinary manufacturing have been taken away from
middle-class earners. These tasks are now completed by machines and robots.
Additionally, since highly educated professionals typically possess these
talents in abundance, the value of abstract problem solving, interpersonal communication,
and organizing skills has increased. While at the same time, many cognitively repetitive jobs
performed in offices and on production lines have become devalued. For those with less education,
this has exacerbated downward pressure on wages as well as economic uncertainty. As
long as the low and middle classes keep struggling to get better-paying jobs,
the rich will keep using this to their advantage and get richer.
#6. The rich make important financial decisions when they’re free from stress and worry
As the rule goes, never make any important decisions when you are angry, stressed,
or worried, among others. These decisions have an impact on your life, which includes issues
related to your finances. When it comes to finances, every decision made matters a lot,
and this is one thing that the rich know. Stress and worry plague those who are not wealthy. Since
these feelings are a constant, it’s hard to ignore them whilst making important financial decisions.
This is recipe for disaster as it can make one’s financial matters even worse.
According to a study, stress and anxiety can have an adverse effect on your life
by preventing you from making wise financial decisions. If your finances are already tight,
you are more likely to make decisions that will ultimately cause further financial issues.
You should avoid making poor financial decisions,
and any decision made should be made in a clear and calm mode, like how the rich do it.
Try it out and you’ll see yourself on a positive level when it comes to your finances.
#5. The rich place a higher value on their time
Time is a precious commodity that the rich use to their advantage. You should too. The rich
value their time so much that they tend to place more value on it, and this is something the poor
and middle-class folks don’t do. We all work for money, which is typically a just reward,
for the time and effort put into it. The wealthy, in contrast, believe that a bigger
salary is necessary for their time; hence, they end up receiving more money for each hour worked
as they also work on things that give them a higher income. Time is a very precious resource
which we have, which should not be wasted. So, the big question is, do you value your time?
Let me know with a comment down below.
#4. The rich invest
A few of the many advantages of investing are: being able to stay ahead of inflation, helping you
build wealth because it will double your money; saving you money on taxes; and also, being able
to achieve other financial goals, among many other benefits. This is how the 1% get richer,
by investing and making money work for them. The biggest tip is to make smart investments.
Investments typically do the heavy lifting to help individuals become wealthy,
and this is fundamental to growing your financial situation. You can reinvest
your profitable earnings from those wise investments. You always want to invest as
much as you can afford to lose since investing involves some risk. Due to the high-interest
rates that investing often produces, it has allowed for continuous growth, and
this is something the rich know and use to their advantage to help them accumulate more wealth.
Therefore, Start your investing journey today to really reap the benefits of it. Oh and be
cautious! Make sure you get in touch with a professional who can accurately guide you.
#3. The rich avoid overspending
Spending money recklessly on things that you don’t even need is what will lead
you into financial issues, and it's what the rich avoid (so you should
too). The wealthy know that the more money you spend, the less you have,
and they make every effort to avoid spending mindlessly. When it comes to their finances,
the wealthy are frequently exceedingly circumspect and guarded. If the wealthy spent extravagantly
and carelessly without careful preparation, they wouldn't be wealthy for very long.
No matter how much money you make, if you consistently overspend,
you'll never be able to sustain your money. The wealthy understand that cutting back on expenses
gives them more money to invest and so they can grow it for their future. Keep in mind that,
being frugal depends on your income; a wealthy person may spend a lot more
than someone who is viewed as middle class. But in comparison, the wealthy are usually
cautious and monitor their spending. So simply put: make more, save more, and spend less.
#2. The rich have multiple streams of income
It goes without saying that having only one source of income can’t make you rich,
as the income itself won’t be enough for you. There are many sources of income you can turn to,
and for the rich this includes having several businesses. You can't be rich if you work for
someone else, because you're assisting your employer in becoming richer while you get just
enough to sustain yourself from month to month. The more money you have, the more money you’ll
make. This is why there is the need to have multiple sources of income that will generate
more money. In this manner, you can ensure a steady flow of income, invest the surplus,
or even treat yourself to that luxurious item you've had your eye on without going bankrupt.
There are two fundamental types of income: active income, which is primarily seen by
middle-class people and entails working for the money you earn, and passive income,
which doesn't directly depend on how many hours you put in. We can say that passive income is
used by the wealthy and ultimately leads to their continued wealth accumulation. Examples
of passive income include rental property, dividend stocks, index funds, writing a book,
or developing an app. All of these will generate a steady flow of income from royalties or sales.
#1. The poor and middle class save more than they invest
Saving money is not a bad idea, especially if you’ve got a goal in mind, such as saving up for
college, a home and so on. But this is something the rich don’t pay too much attention to.
Any time they save, they choose to do it smartly. They would rather put the money
in a high-yield savings account that accrues interest before reaching the target goal and
invest it to make more money. This enables them to continue expanding their wealth.
Most lower and middle-class people fall into bank traps, believing it is a good
idea to have a lot of money in the bank, which in reality is depreciating in value.
In fact, research proves that the money you are saving without any interest accruing is
what banks use to loan or credit the top 1%. Take this as you sign to save and invest wisely.
In conclusion, it is evident that a small portion of the population controls the vast bulk of the
world's resources, and this could pose a serious threat to the majority of nations. Increased
employment and the eradication of corruption could be successful approaches to poverty issues.
It all starts with your own personal act. I believe I’ve included all the examples
I could think of today about how the 1% keeps getting richer as the lower and middle classes
get poorer. One could say that the wealthy have worked out how to play the quote-on-quote "game",
while most people aren't even aware that it's being played. But, it’s been a game all along,
and the smartest person is the one that always comes out on top.
And for the pessimists, you're right; having money to leverage makes it much
easier to create money. But with a little persistence and attention,
as well as looking at things and ways that the rich do, you too can break out of poverty. The
only solution left is for everyone to self-reflect on what they really want.
With that being said, thank you all so much for watching,
and if you found this video helpful, be sure to give it a thumbs up and subscribe
to our channel for more tips on how to improve your finances.
Until next time, take care!