Rules of the Rich and Why They Stay Rich
Whilst everyone aspires to become a millionaire, it is less than 1% of the world population who makes it to the “millionaire” echelon. And then again, it really depends on who is counting.
Oxfam says that the richest 62 people in the world combined hold as much wealth as half the world. Quite a few numbers to crunch. It is estimated that there are roughly 35 million people who have wealth that exceeds 1 million dollars.
Although in this post we are not going to see how individuals generate money to get to the status of becoming a millionaire, we are going to look at some of the habits and rules of the Rich and why they stay Rich.
Habits of Millionaires You Should Follow in Life
I cannot feign originality in this post. I must say, that I have always read avidly about the rules of the rich and why they stay rich. I was in fact inspired to write this post after I read some ideas that the owner of the US Capital Bank wrote. But wanted to give it a little bit more flavor and make it more of my own.
First of all, there are two types of millionaires. Those who have earned it and those who have inherited it. You will surely have heard the maxim:
The rich get richer and the poor get poorer
Staying rich is what we are going to talk about today. The process of acquiring millions is not easy. Nor is the processes of keeping your millions. Here we will discuss some millionaire habits that could be adopted in everyday life. They will certainly make us richer.
# 1 Set Savings Goals Very Early in Life
Most millionaires who have grown their wealth have been able to put away at least 20% of their income back in savings. Wealthy people budget. They allocate a budget that goes x% to their housing, x% to their clothing, x% to education, x% to traveling, x% to contingencies. But at the end, you can rest assured that a minimum of 20% of their regular income is going back in an investment.
Even if you are on a regular salary which is tight to live on – if you are marshaled enough to save 20% of your salary for 10 years, you are probably looking at a phenomenal nest egg.
Let us assume that you have a basic salary of $1000. If you save $200 per month for 10 years, you would be sitting on $24,000. You would definitely be looking at a much larger saving because you would have likely earned compound interest on it as well.
Incidentally, compound interest at 6% will double your capital in 12 years.
If you are not sure how to budget – you may wish to learn from our Learn How to Budget Post of some months ago.
#2 Rich People Meditate
You think this sounds unreal and crazy? It is true that most rich people meditate in some form or other. If you take care of your body by relaxing your mind, you are bound to have better overall results. You will also have clearer thinking.
For the rest of the world who lives hand to mouth and spend life chasing their tail, meditation is as foreign as the Martians.
Meditation is not just for hippies. It is a great ingredient for the success of many entrepreneurs. Meditation can take the form of moments of silence. However, it can also be a solitary long daily walk.
Rich and successful people learn the ability to remove themselves from the daily spins and look at their work and life objectively.
#3 Rich People Socialize and Network
Even before the digital social networking revolution, networking has always been high on the priority list of anyone successful. Networking provides opportunity. It also helps for better communication skills.
The great lesson that proper networking teaches is that highly successful people neither criticize nor complain.
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#4 Choosing the Right Friends
The unwritten rules of the rich and why they stay rich is that they choose their friends well. Friends are a huge influence in anyone’s lives. Choosing friends that live within the same spending habits is a very important lifestyle.
If the rich mix around far richer people, they will have to live beyond their lifestyle. This is true for any income bracket we may fall into. One smart way of keeping and storing what we have is to live within our means. This includes mixing with people with the same spending habits.
#5 The Rules of the Rich who Stay Rich is to Make their Money invisible
Many real rich people are austere. They do not necessarily show off their wealth. They do not drive “the perfect car” nor do they live in a “fairy-tale house”.
Rich people do not show off.
They tend to pay their own bills at a table, discreetly but will not offer to pay for everyone else. This is usually being mindful that others may not be able to reciprocate if later they are caught in the same situation. Such habits take pressure off others who are less rich. It is for correct behavior rather than a show of stinginess.
#6 Spending and Investing
I have already briefly touched on this. However, more specifically the rich are austere in their spending. Whilst on average regular people are planning how to spend when they save, Millionaires are planning how to invest their savings.
They keep a close tab on their day-to-day spending and keep it within their budget. Even if for an average person this may look like a big budget, the point is that it is all relative.
These are habits that will increase the value of our savings and enrich our lives no matter what income bracket we are in.
#7 They Marry the Right Partner
Although this may sound odd, researchers have found that one of the rules of the rich who keep their wealth is to marry right. One of the reasons that millionaires get to keep their millions, is that they chose a partner who will share their values and habits.
A millionaire who plans to stay so finds a life match who understands the rules. With a partner who encourages the same lifestyle, it is far easier to stay rich.
#8 Millionaires Enjoy Their Work
The only way to stay rich is to enjoy what you are doing. For most successful entrepreneurs, and even millionaires with old money, enjoying what you do in life is the crux of success.
And Millionaires work hard. They wake up early and sleep early. But they give their work the priority it deserves. Not as a chore but as a way of life.
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#9 Rich People are Not Afraid to Risk
Fear is probably the highest element of risk in our life. It is the excuse behind which most people hide and never see real success.
For the rich, a risk is an opportunity. They speak up when everyone else keeps their mouth shut. They grab opportunities that others shy away from. They turn problems into opportunities. Successful entrepreneurs face their problems. They do not shy away from them. The same rules apply to titled gentry with old money. The ones that stayed rich was because they adapted to a changing world and responded with flexibility.
I have recently watched the whole series of Downton Abbey. This is a perfect example of old money that the real owners Count and Countess Carnarvon have had to adapt to in order to keep Highclere Castle.
#10 Rich People Plan For Their Retirement
You could be thinking why should someone rich think of their retirement. The truth is that it is the richest people who plan properly for their retirement and not those who really need to do it.
Over 90% of the world population is unable to support themselves on retirement. The time when you are unable to generate an income is the time when you need your savings most.
Average people are dependant on social welfare, family, and donations. This is definitely not one of the rules of the rich. The only way to live like the rich is to go back to rule #1 and plan early.
You may be interested to read 10 Golden Rules for a Happy Retirement
Rules of the Rich and What We Can Learn From Them
I believe that success and wealth are really possible for anyone. Granted that a little bit of luck is always going to be in play to set your first hoard away, however, the rules above are everyday rules. The rules of the rich are no different than the rules we can live with on a daily basis to enrich our own lives.
The Rules of the Rich are merely strategies for creating a healthy, happy, and wealthy life.
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