Rules of the Rich and the Wealthy

Discover the Hidden Rules and Neat the Rich at Their Own Game

The general population has a love / hate kinship with riches. They resent those who have it but spend their whole lives attempting to get it for themselves. The reason an immense majority of individuals never accumulate substantial savings is because they don’t comprehend the nature of money or how it works.

Rules Of The Rich And Wealthy

Discover the hidden rules and beat the rich at their own game

Probably among the top tips on building wealth I’ve come across.

Here are some ideas that stood out in my mind.

Hopefully you’ll find them as insightful as I did. They might even challenge some closely held ideas that you have!

Different Mindset

1. Bearing Lots of Money Doesn’t Make You Rich

Being rich is much more about your mentality and your financial intelligence than it is about how much income you have.

Look at Richard Branson for instance. The man is a billionaire, but if you took all that income away from him, he would still have all the knowledge. He would still understand how to begin businesses, invest with wisdom, etc. As a matter of fact, if he had to begin from today I’m quite sure he would have lots of money once again in less than 5 years.

Assume the opposite illustration however: what about a individual who wins the lottery but doesn’t comprehend how to be rich? Is it any wonder that one in three lottery winners are flat broke in 5 years?

Even though they had all the revenue in the world, they still had the mentality and financial intelligence of a poor person, so they turned a loss with their money. They weren’t “rich”.

If you comprehend how to build wealth than you’re rich, regardless how much money you have.

An individual who make $100,000 a year and spends $100,000 a year isn’t wealthy. They’re thinking like a have-not and remaining stuck in the rat race. As a matter of fact, an individual who makes $40,000 a year and invests $20,000 is more plentiful.

2. The Longer you are able to go without working, the more affluent you are.

As touched on in point #1, rich individuals save and invest a portion of their income. What do they invest in? Passive income streams that pay them whether they work or not.

If you’ve no savings, then it doesn’t matter how much income you make annually; you aren’t rich. If you quit working today, how long could you continue to pay for your current lifestyle? A calendar month? 6 months? Twelve months?

The longer you could go, the more affluent you are. And the richest individuals are those that are financially free. That means their passive income streams are enough to cover their expenses. In effect, they could go on forever at their current level of living without working again.

3. Wealthy And Poor People center on Different Types of Money

According to Robert Kiyosaki, there are 3 types of income: (1) earned income from a job, (2) portfolio money from stocks or bonds, and (3) passive money from real estate or other income rendering assets.

Poor and middle-class individuals center on earned income. There are 2 problems with this.

Firstly, you only get compensated when you work. And there is a fixed amount of hours in the day, which means there’s a cap on how much money you are able to make through earned income. The second problem with earned income is what is called “50% money”.

Basically, the government takes 50% of every earned income dollar you make. Income is taken out of your paycheck before you ever get it, and then more money is drawn out when you pay taxes.

Poor and middle-class individuals center on earned income and try to get rich by working doubly as hard.

Rich individuals on the other hand center on the other two types of money, portfolio income and passive income. These are not dependent upon the number of hours in a day, so they grow indefinitely, and they’re far better in terms of taxes too. The highest capital gains tax rate is 15% and in real estate you are able to often pay zero taxes or defer the taxes forever.

The beautiful thing about earning asset-based income is that it doesn’t require your physical presence like a job does. Employment is trading time for money with little leverage.

Leverage is described as the mechanical advantage or power gained by using a lever, the power of action. Leverage merely compounds one’s strength and effectiveness. The ability to be paid for work that you don’t do is the result of leverage. It engages a multiplier effect as the asset develops in value.

Read Much More Inside…

Chapter 2: The Richest People In The World Are Traders And Flippers

Chapter 3: Investment Rules

Chapter 4: The Difference Between Investing And Trading

Chapter 5: How To Get Cash Flow From A Bank Without Refinancing

Chapter 6: Focus On Cash Flow Rather Than Cash Sucking Liabilities

Chapter 7: Be Happy During A Recession

Chapter 8: The Winners Will Be Prepared In Any Situation

Wrapping Up

If you’re still running your financial life according to the wealth building rules, we all grew up with, you’re severely limiting you might, creativity, and financial potential as a result.

As recent economic events have demonstrated, these “old rules” are inanimate. A fresh and radically different set of rules have taken their place.

And the time for you to study them and stake your claim in the
new economy is today!

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Regards, Coyalita

Behavioral Health Rehabilitative Specialist & Addiction Counselor

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