Learn from the Rich

What Have I Learned From The Rich?

  1. They have a habit of saving money, regularly
  2. The wealthy invest wisely
  3. Always learning
  4. Always teaching

Learning how the rich think
Since 1985, I have worked in finance.  For most of this tenure my specialty has been putting private capital to work.  I have studied the wealthy for about two decades and I have some valuable information to impart to anyone willing to read.  How do the rich think?  What makes them grow more prosperous?  What are the traits which lead to wealth and how can these traits be acquired by those aspiring to become wealthy?

Locked into a social class
In some countries, such as England and India, there is a caste system.  Each person is born into a social class and can never escape.  It was important for Charles to marry a woman of royalty and not a ‘pedestrian’ or someone from ‘average’ stock.  Rumors suggest that Princess Diana might have been murdered because she was contemplating marrying a swarthy-skinned Egyptian, to the chagrin of those with power and influence in England’s caste system.  Whether prejudice is based on class or skin tone, it’s is wrong.

Equal opportunity has made a great county even better
In a society where class distinctions are made, people are often held back and denied opportunities because of their social class.  Up until the 1960s, the United States had a similar system, but civil rights laws were passed and the general public was forced to give up some of their traditional prejudiced ways and treat all citizens equally and fairly.  We are a better country as a result of these new civil rights laws.

Nothing defines you better than your own deeds
It was a good day in the history of our country when these democratic laws were passed, because from that point on, one placed himself or herself into a class by his or her own behavior.  Anyone can go to school.  Those who do become ‘good stock’ and part of the ‘educated class’.  Those who choose not to be schooled shall remain ignorant unless they learn from others.  Not all wealthy people have a formal education, but they are quick to learn.  They watch others and learn from them.  Others watch them and learn from their deeds.  We are all defined by our actions and our words.

Spotting a phoney
A charleton will appeal to your ‘get rich quick’ instincts and promise you wealth in a day for a small price.  They will teach you how to get rich overnight, but when you examine what happend to you after they leave, you discover that they got rich overnight and you dropped a bundle.  Remember, If their methods work, why aren’t they using them?  Why are they selling you this ‘valuable’ information?  If they practice what they preach, they would have so much money, they wouldn’t have to sell books.  Don’t be conned by the con-artist.

Real for imaginary
When someone asks you to exchange real money for a dream or a promise, that’s an indication that you are being conned.  The books and the tapes promise great wealth, but that’s a promise or dream.  If you exchange your money for that dream, you will have been conned.  When you give up your money, get something real in the exchange.  This advice will help you avoid losing money to charletons.  It plugs a hole in the bucket so you can begin to accumulate cash for investment.

Knowing right from wrong
Others may try to define you, but when you open your mouth to speak, your words define you better than anyone else can.  Your words speak loudly, but your deeds speak even louder.  If you are shouting insults to other drivers, using vulgar hand gestures, politely asking the hotel clerk for a suite or teaching a class of young people, you are defining yourself through your words and deeds.  When you do things correctly, you serve as an example to others so they can emulate you.  If you fail to communicate effectively, some can learn by your mistakes too, but sometimes, others copy your mistakes; especially children.  It is not always obvious what is correct and what is wrong.  Others may try to define you, but you define yourself better than anyone else can.  So how do we get on the right track and avoid making mistakes others have made?

Four steps in the process of creating good habits for yourself and creating a legacy of success for loved ones
First, you have to be able to recognize what is right and what is wrong.  Second, you have to implement what is right and avoid doing what is wrong.  Third, you have to repeat correct behavior until it becomes an ingrained habit and way of living.  Fourth, you have to teach others what you believe in.  These four rules will carry you and your family into a more prosperous future.  Now, shall we get started?

The decision is simple; Save, regularly!
I have imparted one observation of how rich people are different from the rest; the habit of saving money, regularly.  No matter how much money you save each month, a little or a lot, the pile gets progressively bigger.  And if the pile gets bigger each month, what does the future hold?  Isn’t ‘wealth’ the natural outcome of saving regularly?  Is there any question as to whether one should save money regularly or not?  Once we all agree that saving regularly is the habit to cultivate, the only thing we need to do is implement the program, right?

Changing course
If the habit of saving is painful at first, that’s because it is not a habit yet.  Changing course is bound to have a centrifugal effect.  When the rocket is blasting off, the face of the astronaut is distorted, but it takes that kind of force to get the rocket above the earth’s atmosphere and into orbit, but soon the astronaut is weightless.  Is it worth it?  Astronauts will tell you that it is necessary if you are going to launch into space.  Don’t expect to blast off without the effects of a change in course.

Handing down the legacy
If the habit of saving regularly was engrained in you from childhood, by loving parents, the effects would be greatly reduced.  That is the legacy you have to pass on.  You give your wealth to you children and you give them the tools to manage that nest egg and make it grow.  You don’t want your kids to live in weightless space, because they might become flabby.  You want them to feel the foce of constant acceleration.  As their ‘rocket’ travels faster and faster, they become wealthier and wealthier.  You must impart to them, discipline and righteous habits that lead to greater wealth.  Saving regularly and investing wisely are the two habits of the wealthy that everyone should cultivate.

How do the wealthy invest wisely?

  • They make ‘secured’ investments
  • They are thorough in their process
  • They use inductive and deductive reasoning
  • They don’t take anyone’s word for it, they get proof to support any claims made
  • They like to understand everything, completely
  • They don’t believe in owning real estate, long-term
  • Wealthy people over-estimate the costs of a project and underestimate revenues coming in
  • The wealthy consider the ‘worst-case-scenario’