Revealed!! 7 Money Secrets The Rich Don’t Want You To Know (Place Your Focus On No. 4)

Ask most personal finance experts and they’ll tell
you the secret to becoming rich is no secret at all:
Work hard, live below your means and save every
dime. The nation’s One Percenters, however, might
disagree.
There’s no shame in a modest lifestyle — even
Warren Buffett lives frugally. But if your goal is to
get rich, it’s helpful to know these seven secrets the
ultra-wealthy aren’t likely to share.
1. Salary isn’t the whole story
Climbing the corporate ladder will only get you so
far; at some point, you reach your earning potential
and plateau. The rich know that in order to grow
wealth, it’s important to make your money work hard
for you — not the other way around. In fact, Robert
Kiyosaki, author of the No. 1 best-selling personal
finance book “Rich Dad, Poor Dad,” built his entire
money philosophy around this concept.
Generating income from passive, rather than active,
income sources is the best way to do this.
Investments that yield passive income include
dividend-paying securities, rental properties, profits
from a business you do not directly manage on a
daily basis — even royalties on creative work or
inventions.
2. Take advantage of time, not timing
If the recent Dow Jones crash proves anything, it’s
that no one can predict what the market will do
tomorrow. The wealthy know this and make no
attempt to moonlight as day traders.
“Time is more important to investment success than
timing,” explained Peter Lazaroff, a certified financial
planner who manages portfolios upwards of $10
million for Plancorp, LLC. “Most of the population
believes that timing the market’s moves is the key
to growing rich through the stock market. The
wealthy, however, understand that time and
compound returns are the most important factor in
growing wealth.”
Though it might seem counterintuitive, getting rich
requires investors to adopt an unsexy buy-and-hold
strategy, ride out market fluctuations and ignore
speculation.
3. Put it in writing
The difference between having an idea and putting it
on paper is often what separates the uber-
successful from average folks. And if you equate
success with wealth, it might be time to start writing
down your goals, both large and small, in order to
become rich.
Thomas Corley, author of “Rich Habits: The Daily
Success Habits Of Wealthy Individuals,” noted that
67 percent of the wealthy people he surveyed wrote
down their goals, while 81 percent kept a to-do list.
If your goal is to become a multimillionaire, write it
down along with an action plan for making it happen.
4. Understand value over cost
According to Justin J. Kumar, senior portfolio
manager at Arlington Capital Management, “The
wealthy person has three best friends: her attorney,
her accountant and her advisor. The wealthy tend to
use the law and tax code to their advantage when
figuring out how to maximize their wealth, especially
over multiple generations, and they are not afraid to
spend money up front for counsel to get these
answers.”
Kumar explained it’s common for middle-income
Americans to cut corners in order to save money,
yet ultimately find the results lacking. “The wealthy
look at value over cost, but they are still prudent in
their decisions,” he said.
5. Eat out less
People who are concerned with saving money often
skip the daily latte. The rich enjoy small splurges
such as Starbucks whenever they want and instead
look at saving from a bigger picture.
Author Paul Sullivan and colleague Brad Klontz, a
clinical psychologist with an academic appointment
at Kansas State University, conducted research on
the difference in spending habits of the 1 percent
and the 5 percent. The 1 percent spent 30 percent
less on eating out and saved it for retirement
instead. “And that, more than the cost of a
Starbuck’s latte, is what, over time, separates the
wealthy from everyone else on the wrong side of the
thin green line,” Sullivan wrote in Fortune.
6. Be your own boss
Employees work to make their bosses rich. If you’re
aiming for true wealth, consider starting your own
business. According to Forbes, nearly all of the
1,426 people on its list of billionaires made their
fortunes through a business they or a family member
had a hand in creating.
“Many middle class workers think that starting a
business is too risky,” noted Robert Wilson, a
financial advisor and frequent contributor to CNN,
NBC and CBS. “The wealthy understand that what’s
risky is allowing your time and earnings to be
dictated by a boss who couldn’t care less about
whether you get what you want for your life.”
7. Use other people’s money
To the average person, “it takes money to make
money” might sound like a tired cliche used to justify
irrational spending. For the rich, it’s a golden rule of
wealth.
The key is leveraging other people’s money to
increase your own wealth.
“Trading time for dollars is a losers’ game, especially
as technology destroys many jobs that don’t require
a highly skilled human being,” said Wilson. “Using
money from banks/investors and hiring people to
work for you is a time-tested formula for building
wealth, not to mention the tax laws, which heavily
favor businesses.”
Whether you’re fundraising to start a business or
flipping real estate for a profit, relying on other
people’s money to do the heavy lifting greatly
increases the return. Of course, it’s also riskier than
relying on your own funds. But if you follow the sage
words of the great Warren Buffett, consider that
“risk comes from not knowing what you’re doing.”

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