Who wouldn’t want to be rich and have money at their disposal? Who wouldn’t want to sleep at night knowing that their family will be financially safe in the event of a misfortune? All of us aspire to that but only a few among us actually achieve it. So, what is it that sets that the 1% apart from the rest of the crowd? Here we introduce you to some of the best-kept secrets of the rich.
1. Don’t rely on a single source of income
Relying only on your salary as a source of income is pretty foolhardy. There’s only so much you can earn even if you climb up to the top of the corporate ladder. You don’t want your earning potential to plateau. To avoid this, it is necessary to earn from passive forms of incomes such as investments, rental properties, profits from a side business, etc alongside active income routes. Remember to make your money work hard for you and not the other way around.
2. Be smart about taxes
The wealthy know everything there is to know about taxes. They don’t pay extra in taxes unnecessarily but they pay every penny they owe to the government because they know about the little tax-saving tips (legal of course). Keep yourself in the know about every tax saving scheme out there to be wise about paying taxes.
3. Eat out less
No multi-millionaire worth their weight in salt indulges in a daily stop at Starbucks or a Costa’s. They indulge when they feel like and not as a habit. Instead, they invest that money towards their retirement fund. And this is exactly what, over time, separates them from the rest of the crowd.
4. Limit your debt
Getting rich doesn’t mean that you lead a mindless, extravagant lifestyle funded by loans. Work towards repaying your debts before focussing on growing your money. Once you have cleared your debts, begin investing, however small the amount may be. This money over time will add up to a substantial sum. Like Warren Buffett, the American business mogul, once said, “The ideal business is one that generates very high returns on capital and can invest that capital back into the business at equally high rates.”
5. Be disciplined
One trait you’ll find in common among all successful people is their discipline. If you make up your mind to work towards getting rich, Stay Disciplined! Incorporate this discipline into your spending, investing and day-to-day habits. Work out a daily routine, from the time you wake up to the hours you put in at work and stick to it. As Robert Kiyosaki, author of Rich Dad Poor Dad rightly said, “Confidence comes from discipline and training.” And confidence is what makes regular people leaders.
6. Visualise your goals
A secret that most millionaires swear by is visualising your end goals and writing it down. So you want to own a fleet of luxury cars. What would they be like? What colour are the seats? How are the alloys? Write all of these down and THIS is what you need to work towards. Studies have shown that writing down your goals increases your chances of actually achieving them. And while you begin this little exercise, also remember to believe in your dreams. Visualize yourself as a multi-millionaire and you will be on your way to riches.
In parting, we leave you with our favourite quote from The Wolf of Wall Street:
“Act as if! Act as if you're a wealthy man, rich already, and then you'll surely become rich. Act as if you have unmatched confidence and then people will surely have confidence in you. Act as if you have unmatched experience and then people will follow your advice. And act as if you are already a tremendous success, and as sure as I stand here today - you will become successful.”