The Wealthy Have 2 Major Things in Common
I wanted to share with you some of the habits of working. Now, it's important to understand the difference between a wealthy person at a rich person.
A wealthy person is someone who's completely changed their mindset. Someone who understands how to make money and how to keep that money, and make that money work for them in order to make more money. There are a lot of rich people out there, people who make a lot either at their jobs or their business, but they have no idea how they make that money. The lottery winner Doug got their entire neighborhood new Ferraris. Is that a way to hang on to it? No. They have a billion dollars, which sounds like a lot of money because they ever have been close to that before, but they don't have the mindset or the education on how to keep that money once they made it.
So, I wanted to share with you guys some of the points to help you change your mind. Some of the habits of wealthy people to help you change your mindset from that of “I can make a lot of money and be rich” to that of “when I make a lot of money, how am I going to hang on to wealth?” And believe it or not, it does not include stashing it away in your savings account. You’ve got this habit of a poor person.
I've got some other blogs that are going to help share some of these concepts, but in a nutshell, the way we currently do our banking is actually kind of a scam. The bank has us doing things that are best for the bank. We go in and we say, “Hey, where's the best place to put our money?” and they say savings account or checking account. Do they think that's best for us or is that best for them? It's actually best for them.
We go into the bank we say, “I want to buy a house and I want to use this bank to help me buy that house for the financing, what's the best type of lending that should be made?” They say mortgage. Well, is the mortgage actually best for you or is it best for them? You ever think about that? Of course, it's best for them.
These are some of the things that the wealthy think about, but the people who are simply rich, which is just a temporary sleeve, don't necessarily think about it. The wealthy, they understand things, their money and their wealth is long term.
What they have in common, pretty much what every wealthy person has in common, is that they are business owners and real estate investors. Here's the big reason why. In your savings account, they pay you what? Just a point two percent, a small portion, and they tell you, “Credit cards are bad. Credit cards are evil. If you need to save your money in your savings account, if you have an emergency, use the money from there.” Well, let's say you're going to save up ten thousand dollars in your savings account and all of a sudden, you need a new car. The new car is ten thousand dollars and that’s how much you have in your savings account. Well, don't use that because that's for an emergency. Instead, get a car loan from the bank and they will charge you six percent for the ten thousand dollars.
Well, where do you think that they get that ten thousand dollars from? It's from the savings pool, the money that you saved that they're paying you point two percent on. They're actually giving it back to you and charging you six percent. It’s scam. The wealthy, they use real estate as their savings account.
Real estate's a vehicle that you can put money on and actually outpace inflation. Inflation is at three point five percent a year on average. I got that from reliable source, and it's going to be pretty close to that. Your savings account is not going to keep up with the inflation, but real estate however, from the past years, has outpaced them. That's why the wealthy use equity and real estate as their savings account.
You can access that equity by using certain learning tools, such as equity credit, that are secured by real estate. You have that equity that you need simply by changing your thought process.
The point of all this was to share with you that the wealthy, those who are really wealthy, they have those two things in common. They are business owners and then they save their money, they keep their money, in real estate and not in their checking account. I think you'll find that the ratio, they keep less cash on hand, than the less wealthy.
Remember that your wealth is in business owners and real estate investors.