Why do the rich keep getting richer? Most of the time, it's not
because of luck. It's not because of the family they were born into.
It's not because they won the lottery.
Wealthy people simply do things differently.
because of luck. It's not because of the family they were born into.
It's not because they won the lottery.
Wealthy people simply do things differently.
It may not seem fair, but the fact is the "income gap" is increasing
and most financial experts only see this trend continuing with no
end in sight.
and most financial experts only see this trend continuing with no
end in sight.
In preparation for this column, I sat down with someone who
knows far more wealthy people than I will likely ever meet: Jeff
Rose. Rose is a certified financial planner, author and blogger
at GoodFinancialCents.com, as well as a millionaire himself, who
dedicates a good portion of his time to helping people become, and
stay, wealthy.
I asked Rose why he thought the income gap was growing. He
mentioned five primary things that wealthy people simply do
differently than the rest of the world. Here are those five, in no
particular order.
mentioned five primary things that wealthy people simply do
differently than the rest of the world. Here are those five, in no
particular order.
They take risks
Rose explains that the wealthiest people he works with routinely
"throw spaghetti at the wall to see what sticks." In other words,
they try a lot of different things, knowing that a lot of it will fail.
"throw spaghetti at the wall to see what sticks." In other words,
they try a lot of different things, knowing that a lot of it will fail.
They take those risks because they know that failure is just part of
the process in discovering what will truly work to build more
wealth. Furthermore, as Rose explains, the rejection of those ideas
invigorates the wealthy into finding what will work, a stark
contrast to most of the population that simply looks at failure as a
road block.
the process in discovering what will truly work to build more
wealth. Furthermore, as Rose explains, the rejection of those ideas
invigorates the wealthy into finding what will work, a stark
contrast to most of the population that simply looks at failure as a
road block.
They invest in themselves
According to Rose, "wealthy people don't look at the money spent
on personal growth as an expense, but an investment."
on personal growth as an expense, but an investment."
While many individuals conserve every penny equally, the wealthy
understand that strategically investing in themselves will produce a
far greater return than any stock, real-estate investment or business
venture.
understand that strategically investing in themselves will produce a
far greater return than any stock, real-estate investment or business
venture.
Whether it's purchasing a book, hiring a coach, joining a paid
mastermind group or another source of paid self-improvement, the
wealthy see this as an investment. Do you?
mastermind group or another source of paid self-improvement, the
wealthy see this as an investment. Do you?
They associate with those they want to emulate
When the human body gets too hot, it produces sweat in an attempt
to cool down. When it becomes too cold, it shivers to produce
heat.
In other words, the human body is constantly adapting to keep its
temperature at the same comfortable spot. This automatic leveling
is a biological process known as homeostasis and is found in
numerous aspects of life.
to cool down. When it becomes too cold, it shivers to produce
heat.
In other words, the human body is constantly adapting to keep its
temperature at the same comfortable spot. This automatic leveling
is a biological process known as homeostasis and is found in
numerous aspects of life.
From human biology to the temperature of the earth to a car's
cruise control to the thermostat in your house, homeostasis is a fact
of life that governs nearly every aspect of your existence. And, as
the wealthy have discovered, homeostasis can also be a powerful
way to build wealth.
cruise control to the thermostat in your house, homeostasis is a fact
of life that governs nearly every aspect of your existence. And, as
the wealthy have discovered, homeostasis can also be a powerful
way to build wealth.
As Rose stated bluntly to me, "If you want to be rich, hang around
rich people."
rich people."
Or as financial TV personality Dave Ramsey often says, "if there
are four broke people in a room, you'll be the fifth."
are four broke people in a room, you'll be the fifth."
Wealthy people have discovered that they can grow their wealth
simply by associating with those who are even more wealthy.
Humans pick up the habits and strategies of those in their
immediate surroundings, and the wealthy have learned to use this
homeostasis to their advantage.
simply by associating with those who are even more wealthy.
Humans pick up the habits and strategies of those in their
immediate surroundings, and the wealthy have learned to use this
homeostasis to their advantage.
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