Compared to poor people who buy things that eventually become liabilities, successful people buy assets that eventually make them richer. This is due to the difference in money mindsets.
While poor people believe they need to save more in the bank and fake it till they make it, the rich borrow the money and invest it in profitable ventures that yield more money. Due to this poor way of thinking, Michael Bloomberg, CEO of Bloomberg, said, “I think the more money you put in people’s hands, the more they will spend.”
Aliko Dangote, the richest man in Africa, further explained how some entrepreneurs in Africa sometimes spend at the expense of their businesses. He said, “ Everyone, including the younger ones, needs to be very careful because one of the common issues with us Africans is that we spend our projected incomes.
Once you start doing business and business starts doing well, rather than for you to keep reinvesting the money in the business, you will start spending money and thinking that the profit will continue to come. Business has ups and downs, so you need to be very focused to decide on what to do with the profits, what not to do and how to do it.
Meaning you are not supposed to use your money to buy posh cars. This is because luxury things take up your time which will not make you focus on your business.”
Though the rich acquire luxurious properties such as private jets, most of the time, it saves more time to earn more money. Here are some things the wealthy buy to make themselves richer.
Successful people have one common attribute — their taste for more knowledge. Since learning is infinite, integrating tech into teaching and skills acquisition is possible. This helps them learn and discover new ways to make things work and generate more money.
The importance of this cannot be overemphasised. The acquisition of useful education made the renowned people who they are today. Tony Elumelu said, “Everything I have today is because of Africa, I was born here, went to school here, I work here, and I’m achieving some level of financial comfort here.”
Time is very important to rich people. For every minute they waste, it is equivalent to millions of dollars. This includes items such as private jets and helicopters.
Most billionaires that own a private jet said that it makes their business stress free. Instead of booking flights and queues constantly, they save time in travelling about for their business dealings, thus making more money.
Reading is one of the tools that made the richest people in the world who they are today. This explains why they all enjoy reading. Tony Elumelu, the founder of United Banks for Africa and the Tony Elumelu Foundation, said, “Voracious reading is the solution to making a difference. Knowledge increases confidence, and confidence is a key attribute for excellence.”
Elon Musk, the wealthiest man in the world, also said his reading habit made him who he is today. He said, “Books raised him.” According to Tesla’s founder, the idea behind the creation of the companies of his three companies and their success were gotten from reading books.
A good accountant
No matter how rich you are, it will go with the wind if you are not accountable for your business earnings. This is why the place of a good accountant in your business is crucial in case you lack the needed skills.
Although buying the service of a good accountant might be expensive, a good one helps save more money for your company, thus making more and mitigate against risk. The lesser you lose, the richer you get.
Red Adair, an American oil well firefighter said, “If you think it’s expensive to hire a professional, wait until you hire an amateur.”
Rich people have diversified portfolios in different sectors. This is mostly through buying stocks and investing in various businesses. This way, you have equity in businesses that have the potential to yield three times the initial capital invested.
While there is massive potential in investing, Warren Buffet, a renowned investor, advises, “Never invest in a business you cannot understand.”