After trial and error, it took 20 years. Achieved a multi-million dollar net worthCurrently 64 years old, I have income from 18 companies I have started and 12,000 apartments I own.
But I would have liked to know sooner how the ultra-rich think about money. I have been in relationships with many millionaires throughout my investing career and have observed their habits over the years.
Here’s what they do differently:
1. Don’t diversify your investments right away.
Diversifying your portfolio by investing in a mix of different stocks, funds, and other investments is generally good practice.
But as the richest build their net worth, they often go all-in on their own projects, diversifying as they earn more.
For example, Elon Musk bet $22 million to completely sell his first company, an online business directory called Zip2. about his next businessan online banking service called X.com.
After X.com merged with PayPal, he made $180 million in the sale of PayPal to eBay. This gave him cash to invest in Tesla, SpaceX, and other ventures.
2. They know that debt is for businesses, not people.
Having built up my net worth, I didn’t rack up debt on non-essential purchases like designer clothes and fancy homes.
Even if I could afford to pay the bill, I didn’t want to waste my money paying interest. Instead, I wanted to put all the money I earned into making more money. For me, it’s about putting my income into my business.
I paid for the house with cash and never accrued interest on my credit card.
In some cases, if you’re trying to build a business, debt can help you make money by giving you access to income-generating assets sooner or later.
3. Owning a home is not always your first investment.
Buying your first home may seem like the American dream, but the wealthy are rarely the first to buy.
In my opinion, homeownership doesn’t always see the same return on investment as anywhere else you can invest your money. Didn’t buy.
4. Instead, cashflow real estate is where you protect and grow your money.
Conversely, cash flow real estate — commercial real estate that makes a monthly profit from rent after mortgage payments, property taxes and maintenance — is a great way to make more money.
You can earn passive income from ownership of these properties, and they are often easier to sell than your primary residence. When you sell your primary residence, you have to find a buyer who can imagine yourself living there. When selling a profitable rental property, all you have to do is find a buyer who wants to make a profit.
5. Always buy in bulk.
Wealthy people are willing to spend more on each purchase in order to lower the price per unit and save time spent repeating useless activities.
This can apply to business — a rich person might make a deal to buy a large amount of supplies or equipment — or it can apply to your personal life. Buy in bulk when you can. doing.
6. Invest in your network.
I have never been invested in by someone who doesn’t know me. And most of the properties I currently own were purchased from sellers who chose me over other qualified buyers.
The more people get to know you, the more they will trust you and believe in your talents and skills. This results in better opportunities, faster decisions and higher margins.
So invest time and resources to establish and maintain good connections.
7. Never be satisfied.
One of my friends, a serial CEO, has worked with some of the richest people in the world.
I once asked him what they had in common and he said: already achieved, but instead focused on can accomplished. ”
Wealthy people are never satisfied with their past achievements. They believe they can always achieve more. This helps them think big about future business ideas, inventions, investments, and other wealth multipliers.
8. Don’t waste time trying to do everything yourself
Wealthy people know that time is the only resource they are really in short supply of. You can’t buy more.
So they maximize their time by letting go of the need to manage every detail of their business and portfolio, effectively outsourcing and delegating to good and smart people willing to trade their time for money. Learn
Grant Cardon CEO of cardon capitalbest-selling author “Rule of 10” Founder of The 10X Movement and The 10X Growth Conference. He owns and operates his seven privately held companies and his portfolio of over $4 billion multifamily projects. follow him on twitter @GrantCardone.
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