It’s easy to wonder, do the rich know something about making money that the rest of us don’t? In this world, there are those who have money, and they seem to have a lot, and those who don’t. Is there some sort of holy grail money secret that you must know to unlock the secrets to becoming one of the 1%? Here are 10 money making strictly confidential secrets to wealth, straight from the mouths of those who have it all.
1. Work for Yourself
When you’re working as an employee for someone else, you’re working to make someone else rich, and you only get a small amount of the wealth. The super rich understand that having your earnings and time controlled by someone above you, who’s likely interested in lining their own pockets, isn’t worth it. Most people would be too scared to start their own business, but the richest people in the world all get their money from their own or family member’s businesses.
2. Don’t Put All Your Eggs in One Basket
The rich have several investments, this means they have a steady supply of income coming from multiple areas, and if one fails or is struggling- they can pull on some of their other income in times of trouble. Make some effort to have the right mix of investments, rather than putting all of your money in one asset or in the same investment category. Wealthy people also work hard to keep their money separate, so that if there’s a problem somewhere and assets are seized or taxed- they have untouched money that they can always count on.
3. Don’t Waste Money to Impress Other People
Showing off isn’t an income. Saving money is. Most rich people know that they’re not in any competition to seem more wealthy than anyone else, they don’t care what other people think and they don’t end up wasting money because of it. A lot of millionaires who come from humble beginnings started their fortune by living as paupers until they could afford to invest and better themselves and their fortune.
4. Always Spend With A Reason
A normal middle class person may walk through a mall and get distracted by all of the different things on offer. But the rich know that all money must be spent towards a real, long term goal. An investment. The wealthy are mindful about wasting resources on something that won’t give back, or that they don’t care about.
5. Work Smart, Not Hard
The rich know that working hard all day long won’t get them to the top wealth by itself. All wealthy individuals have income generation that requires an initial set up and then rewards them over time. This, passive, income is a great way to supplement your standard income without taking time out of your busy life. There are many things such as inventing,investing or creating that can provide an income for a long time after the deed is done.
6. Avoid Fees and Extra Charges
When you’re working with high volumes of money, fees can easily chip away at your hard earned cash. Whether it’s taxes, trading fees, credit card payments or foreign transaction fees. The rich and the successful go out of their way to avoid it all. Every penny counts in the pursuit of wealth, and every fee or extra charge is money which could be invested somewhere else and give you a return in the future.
7. Dine Out Less
Those concerned with saving money often make all of their food and drinks at home- saving on labour costs and minimizing temptation to overspend. Those who have money avoid splurging out on expensive outings and try to spend towards a bigger goal, the bigger picture. This means that when they spend, they get it back. Replacing your morning Starbucks with a home blend might not seem like a big deal, but in the long run it can save a lot of money that can then be spent somewhere more important.
8. Plan Your Taxes
The rich don’t wait til the last minute to sort out their tax returns. Taxes are one of the biggest income sinkers everyone faces, and the rich take steps to avoid them. Taking steps throughout the duration of your business to lower tax is very important, for example, moving a large businesses headquarters to a country that has lower taxes for large businesses. Keep track of receipts and make sure you have a professional around to prevent business tax mistakes. Make sure you claim back all the tax you can and look up specific disqualifications and deductions certain items can have from tax. These are biblical words for the super wealthy.
9. Hire Advisers
The rich know that the best way to make money is to have people working for you and your wealth. It’s a form of investment, make your money work hard for you- not the other way around. Surround yourself with trustworthy and knowledgeable financial, tax and legal professionals to help you navigate the minefields of business life. You don’t need to already be rich to start hiring your own adviser, if you’re not gaining wealth now- an adviser could be just the thing you need to correct your mistakes and set you down the right track. Just remember, the wealthy never do anything themselves- the aim is passive income.
10. Think In Ink
Before you write down an idea, it’s difficult to pinpoint specifics or remember certain points. Writing down everything you think about can help sort through your thoughts; break them down and piece them back up again to come out with a cohesive plan that uses everything you had thought about. You can’t forget something you’ve written down. The vast majority of wealthy individuals use to-do lists and write down their goals on paper, having this in front of them helps them visualize what they have to do more clearly and aids them in accomplishing what they want.
A young entrepreneur, author, blogger and freelancer, Umaid Ali is a man who is passionate about inspiring and educating youth to live a life they love