Wednesday, August 8, 2012

Secrets of the Rich

All 25 of the top 25 of the Forbes rich list ran a business. Only 5 of the top 50 derived wealth from investments.

They started or ran their own business, and that means hard work. They put work first. They probably don't hold a lot of cash: everything is tied up in the business or investments. Their business is usually in a growing industry where they can capture a large market share and they are experts in their field.

Few seem to have built their wealth from the sharemarket, except for stock in their own company if it is listed. The rich buy their own property early on and from there speculate on property.

If there's one thing millionaires are constantly doing, it's networking and mixing with other millionaires. They achieve maximum leverage by utilising other people's money, time, knowledge, ideas and labour.

They also know how to bounce back from misfortune. It's amazing how many of the self-made rich failed at some point only to pick themselves up, dust themselves off and go on to make a fortune. They believe in themselves. Business is all about turning negative situations into positive ones.

They avoid the crowds. They start with a big goal in mind. They learn relentlessly. They sell by communicating. They are patient.

They're tight. The rich will always drive a hard bargain. Although, they don't need to be overly frugal. They take smart, calculated risks, while always having good risk management in place.

Finally, the rich pay as little tax as they can get away with.

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