This article will give you tips on how to think about money the way the rich do. It will help you become financially smarter as well.
Things You'll Need
- Financial Intelligence
The biggest misconception about being rich, is that you have to flaunt your wealth to show people that you are rich. Believe it or not, there may be millionaire families on your street and you would never know it. That's because most millionaires look like regular people who don't show off their wealth. They own regular homes and cars. They may have a few luxuries but most average millionaires cannot be spotted on an everyday basis because they prefer it to be that way and don't flaunt their wealth.
You have to learn the difference between a asset and a liability. A asset is something that puts money in your pocket without you having to do a much work for it. A liability is something that takes money out of your pockets and doesn't put money in your pocket. If you want to be rich, you need to acquire as many assets as possible and get rid of as many liabilities as possible.
The rich are concerned with teaching their kids the importance of having a great financial education as opposed to a typical, more traditional education kids are taught in school. They know their kids aren't going to the learn financial skills in school on how to create money with their ideas and businesses or learn the info they need to get rich and stay that way. Therefore, you need to teach your kid the real rules of money and value that education a little more than a college education. I'm not telling you to tell your child not to go to school. I'm telling you to teach them the importance of having a good financial education. I recommend you read the Rich Dad, Poor Dad Series by Robert Kiyosaki as it will help you, your family, and your friends develop a great financial education.
Lastly, the rich are concerned with creating as much passive income as they can and working less and less for earned income. This, they know will help them keep getting richer and richer. You goal should be to earn as much passive income as you possibly can and convert earned income from a job into passive income.