What Rich People Do

What Rich People do and What You can Learn from Them

You must understand one thing: To become, be and stay rich you must think and act like rich people do. They absolutely know why they are doing certain things, even if they don’t tell everyone why. The first and most basic mistake poor people make is that they think rich people wouldn’t act reasonable - basically because they themselves don’t.

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The first misunderstanding of poor people is, that rich people spend their money on whatever they want, because they have so much of it. That is the mindset of the lottery winner who is again as poor as before 12 months later, because he did not find anything better to do with the money than to spend it. Rich people are rich because they are pennywise. They don’t make the mistake to think, a lot of money means to spend a lot, but they know: a lot of money means to save and invest it so that it creates even more money.

The truth is: poor people don’t understand rich people at all. Rich people know exactly what the are doing. That is why they are rich in the first place. They know how to make money. And behind making money the second most important know how is how to save - not money - but value, buying power.

Poor people think, money is buying power and is to save. Rich people know, that money is of no value at all and must be exchanged into things of real worth.

The whole purpose of luxury goods is that they are extremely well made and durable, scarce, often even sought-after and hence they do keep their value for a long time. If someone pays a luxury price for something that looses its value like mid-tier consumer goods do (-50% the moment you leave the shop), he is either just out if his mind or obscenely rich - and probably won’t stay rich over a longer stretch of time.

Luxury goods have another price courve like ‘normal’ consumer goods…

…read more in Collecting Luxury Watches

What Rich People do