Usually, poor people think more negatively about the rich people’s ability to get rich because they are lucky or engaged in improper industries, and more positively because they work harder or are frugal. But what these people never realize is that the real reason is that they have different habits.
In his investment career, Cardone Capital CEO Cardone has built relationships with many millionaires and has observed the 8 habits that make them rich.
1. Not rushing to diversify investments
Investing in various stocks and funds to diversify your portfolio is a way to accumulate wealth, but the super-rich, often invest fully in their own businesses when they build their fortunes and diversify only after they are on track.
When X.com merged with Pay Pal, he made $180 million and was able to finance the creation of Tesla, SpaceX, and other businesses.
2. Don’t think of buying a house as your first investment
Buying a home may be part of many people’s dreams, but the wealthy rarely make home ownership their first goal. The return on investment for buying a home may not be as good as other investments.
3. Real estate that can be invested in to generate cash flow
Conversely, real estate that generate cash flow, such as property that generates monthly rental income after mortgage payments, home taxes, and maintenance costs, is a great way to protect capital and increase compensation. This type of property generates passive income and is also easier to sell than an existing home.
4. Debt is for businesses, not individuals
The super-rich does not accumulate debt to buy designer clothes or luxury homes. Even if he could afford it, he would use all of his compensation to roll over his money. However, in some cases, if you are starting a company, taking on debt can help the business acquire revenue-generating assets more quickly.
5. Purchase in bulk
Wealthy people are willing to purchase in large quantities to lower the average unit price of goods and save time on purchases, which can be applied to business and personal life.
6. Invest in people
Cardone says that the more people trust you, the more they trust your talents and skills to create more opportunities, faster decisions, and better profit margins. Therefore, it is important to invest time and resources to build and maintain relationships.
7. Don’t settle for the status quo
A good friend of Cardone’s who has worked as a CEO of several companies said that one thing the rich have in common is that they are not complacent with their current achievements, but rather focused on their future goals.
8. Don’t try to do everything by themselves
The rich understand that time is the only scarce resource and that they cannot get more time through money. So they give up on controlling every detail of their business or asset portfolio and learn to allocate things efficiently, allowing smart, good people to be paid for their time.
Have you all learned?
