What Rich People Buy—and What Poor People Don’t
If you were a millionaire, what would you buy?
A new house? A fancy car? Maybe even a yacht?
The truth is that we often have a misconception about what it is that rich people are truly buying.
That’s because we have a limited appreciation for the power of investment—and that’s why people stay poor.
Though it may be that rich people do buy nicer cars and houses and that they splurge on luxury items, this doesn’t mean that that’s what being rich is all about.
Regular people know all too well that even changing the tires on their car can set them back financially. For some reason, however, it’s common to assume that this kind of free-fall spending will not pose any problems for those with a higher income.
Let me tell you a little secret: reckless spending—unless you’re Jeff Bezos—will always put you in serious financial troubles.
So what if someone has twenty million dollars if they buy a fifteen-million-dollar home?
As you can see, having money doesn’t give people the license to spend freely. That’s why, if you notice, most lottery winners lose all of their winnings. Though most people are left scratching their heads in wonder, it’s not that surprising of an issue.
Why?
Because the money-spending habits that you have while you are poor just aren’t going to cut it while you’re rich.
They’re not going to make you rich, and they’re not going to keep you rich.
In order to make sure that you’re really making money, you’re going to have to rethink everything you know about spending.
Especially for rich people.
Instead of thinking of the luxury items that you’re going to buy, you’re going to focus on what rich people focus on:
Investments.
Making Money While You Sleep
This is the secret to getting rich.
I want you to think of everything you think you know about making money.
Now forget it.
Because here’s the truth:
If you’re wanting to be rich, you’re going to have to start making money while you sleep. This means that you’re going to have to rise above your day job or a set 9-5 schedule.
Instead, you’re going to have to start putting your money into investments that are going to keep growing. This is something that rich people do—and poor people don’t.
Proper investment strategies represent the fundamental difference in spending between rich and poor people. Though we may think of it as being reflected by the quality of the items they purchase, the truth is that the basic principle behind this kind of spending is the same.
It’s not uncommon, for instance, for poor people to spend just as much or an even greater percentage of their income on entertainment and other unnecessary goods.
What they’re not doing is investing their money.
So what makes investment so important?
Let’s say that you’re looking to create a great product—a new mobile app, for instance. Though you may spend countless hours developing it and making sure that it’s ready for launch, once that’s done, people may be purchasing it at all hours of the night.
No one has to go through you to make the purchase. You won’t have to have direct contacts with the customers—you can simply sit back and watch as your income starts to grow.
Of course, this is an oversimplified look. You’ll still be charged with the particulars behind a business, but the main point is that now you will be making money in your sleep.
The amount of money in your bank account will be directly correlated to the number of products you sell—and not to the number of hours you’re working. Now that you’ve managed to flip this script, you can start making more money than you ever were before.
But this all will take a radical change in your mindset. Though it may seem easy, you’re going to have to change the fundamental ways you think about money.
Start Caring About Your Time
The first way to start changing your mindset here is to start caring about your time.
There’s something that every rich person understands: how to make the most of their time.
Now, this doesn’t mean that you have to be going 24/7. There may be times that you choose to relax—and that’s okay. If you have developed the right mindset, however, you’re going to be aware of just how much money you’re losing.
Let’s say, for example, that you’re looking to make $2,000,000 a year. If you were working a normal desk job, the hourly salary that you would need to hit this would be right over $1,000 an hour.
Those who are wealthy are able to see their time in terms of this amount.
If you spend an hour watching TV, for instance, you realize that you’re losing at least $1,000.
As you can see, this involves actively understanding the value of your time. If you’re truly looking to get rich, it’s important that you know just how much you’re worth and act on it.
By selling yourself short, you’ll never be able to reach your full financial potential.
See Investment Opportunities
When you’ve mastered the art of seeing your time as a form of investment in and of itself, you’ll need to be able to find investments elsewhere, too.
Remember, you’re not just going to be investing your money. You’ll need to invest your time as well.
Spotting investments that can help save you time is an important skill. If you’re able to create more time for yourself, you’ll be able to get more work done.
For instance, you have realized that the mega rich fly in their own private jets and helicopters.
Is this because they’re snobby?
That might be part of it, but the main reason is because they don’t have time to waste. When you’re worth thousands every hour, you’re going to lose a lot of money by flying on a commercial aircraft.
When creating more time for yourself, it’s not always going to be easy. You’ll need to be able to discern which investments will provide the biggest returns.
This is true for both money and time.
Business is a game of returns—the more returns you can get for your investment, the more money you’re going to have.
It can be difficult shifting your mind in this direction at first—especially if you’ve always been told that the only way to get rich is to save a lot of money.
But listen to what I’m telling you:
It’s true that you have to spend money to make money—you just have to know how to spend it.
Instead of seeing the world in terms of costs, see them in terms of returns.
“If I spend an hour doing this, will I lose $1000 or gain $1500?”
“If I invest $10,000 in this, will I be able to get a return of at least $50,000?”
Make sure that you’re constantly asking yourself these specific, pointed questions before you engage in any activity.
By balancing out the cost and returns of each action you take, you’ll start to see business—and life—as a game of sums that you’re winning.
The Bottom Line
The spending habits between the rich and the poor are fundamentally different.
And the biggest difference isn’t in the luxury goods that they buy.
Instead, rich people have the powerful ability to see actions in a way that calculates the return of their temporal and financial investments.
By adopting this mindset for yourself, you’ll be on the right track to growing your bank account. By holding yourself to these high standards, you can start changing the way you think about money—and start making more of it than you ever dreamed.
