Only 1 question differentiates “Rich” from “Super Rich”
Recently Rafael Badziag, interviewed 21 self-made billionaires around the world and consolidated his learning’s in the book “The Billion Dollar Secret: 20 Principles of Billionaire Wealth”.
According to him, the key difference between Rich and Super Rich lies in how you answer this question of “What do you like more, making money or spending it?”
If you analyze most of the Super Rich (Billionaires) in the world they are known to be frugal with their spending habits. However, the Rich (Millionaires) they would spendthrift.
The difference underlies the key fact that the Billionaire derives pleasure in making money and not spending it.
Most of you are not Millionaires or Billionaires, then why this article is important to you? Don’t skip this article just because you are lagging behind your financial goal. This may well be the reason why you are not there yet.
The answer lies in your MINDSET – Generally, for a salaried person, once SALARY is credited, the EXPENSES line up – EMIs (House / Car / PL, etc), Household expenses, Children fees, medical expenses, vacation spending (if anything is left) and if something is left then it goes into SAVINGS
So, when I put this into a mathematical equation, it looks like this
SAVINGS = INCOME – EXPENSES
So, it’s first the EXPENSES and whatever is left will be SAVINGS and will be deployed mostly in FD, PPF, etc (wealth destruction instruments)
How a Rich person will think the same equation is, whenever he gets his salary, first 30 percent will be SAVED and whatever is left is for EXPENSES (he has to manage in that). On the first look, it seems impractical and unbelievable. But believe me, this is the only mantra to reach your financial goal.
Now, you realize that saving money will only get to your financial goal. Next is where to invest the SAVED amount.
Other blogs: http://sudarshanpurohit.com/positive-thinking-2/