The Two Secrets the Rich Know
I wrote “Loopholes of the Rich” 7 years ago. It’s been a wild ride, hitting the best seller lists month after month. I’ve updated it a couple of times since I first wrote it, but there are two things that are constant no matter what.
There are TWO parts to the Loopholes of the Rich. It’s how the rich legally (1) Make More Money and (2) Pay Less Tax.
Every week, we talk about new strategies for paying less tax. And occasionally I talk about wealth-building strategies. Then, this past year, it hit me. I’ve learned so much from my successful wealthy clients over the past 25 years. One of the biggest lessons is that the rich ARE different when it comes to making money. They watch trends. They buy when others sell. They know how to maximize opportunities and create new markets. And, best of all, they know how to make the most out of what they’ve got.
For the first time ever, I’m talking about those lessons. Well, actually, I’m doing something even bigger. I”m putting them in action. Please join me at www.BusinessToInvestment.com to read about the 4 stages to creating multiple sources of passive income from assets you already have. You don’t need to buy anything. You don’t need to learn anything - well, actually you do need to learn how to work less and make more money. That’s what BusinessToInvestment is about. It’s about taking your business that you work day in and day out at and turning it into an investment that gives you cash flow every month.
The big ah-ha for me came when a highly successfully client asked me how they could make they could create passive income. They made millions every year and somehow had stumbled on a “no money down” foreclosure-style course. It wasn’t a good fit for them, though, because they had to spend so many hours looking for the no money down deals. They didn’t understand the basics of real estate investing, but they didn’t know how to take their business skills, knowledge, and systems and create something new. That’s what got me thinking about the 4 steps that it takes to create passive income.
I did it once with TaxLoopholes, but it took me 6 years to reach the million dollar level. Now I want to do it in 2 years or less. Are you ready to join me? I hope so!
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I’m not sure exactly how to articulate this trait.. let me know what you think. It’s something about knowing the value of the dollar (sort of depression-era mindfulness about money).
I know that’s a generalization, and some wealthy people do burn through fortunes. However, others, —the majority?—, are quite cognizant about money and what things cost. Perhaps more so that others?
Maybe the maxim is something like, “Just because someone has lots of money, doesn’t mean he spends foolishly…”
Lots of sensible behaviors, watching pennies, and building wealth.
Interesting that you talked about knowing about the value of money.
I have a little different spin. You might have heard it before: the concept of be, do, have.
You first have to BE a certain type of person (have the right mindset), then DO the right activities and finally you can HAVE something different.
The problem is that many people skip (1) & (2) and go directly to wanting to have what the rich do. They don’t have the resources to pay for it, or if they do it’s a transitory blip like this recent real estate craziness, and when things change they don’t have the depth to go through the recession.
My underlying conflict is with “Fake it until you make it.” I don’t agree with being fake on any level, so I have an emotional response to that phrase. Plus, I see the danger of people buying the fancy car, fancy clothes, etc… before they can afford it. But on the other hand, we often need to have different surroundings to “feel” rich so we can have the right mindset.