Learn 15 Facts About the Lifestyle of the Richest the Common Population Doesn’t Realize!
Hello Aluxers and welcome back to our Sunday article that is all about secrets of success. You’re in for a treat since this is one of those article that delivers so much value, you’ll feel the need to read it a couple of times over!
We know the title may sound a bit click-baity, but we promise it isn’t. You guys are special, you choose to come back every single Sunday and consume our content because of the results you get when you apply them in your daily lives and we couldn’t be any prouder of those of you making it!
In the mean-time, the majority of people out there have no idea that the rich approach life differently, they follow a different set of advice and guidelines which we are about to share with you in this article.
No matter how financially educated you are, we can guarantee that by the end of this article, you will either learn something new or get confirmation on what it is that you should be doing next with your life.
We called these secrets, because after reading this article, chances are you will be the only one in your community aware of these!
1. They Focus on Getting Their Money Early in Life
2. Corporations Use a Different Set of Rules Than Individuals
3. They Invest in Things They Understand
4. They Build Notoriety – People Know Who They Are
5. They Focus on Income, Not on Saving
6. Always Put It in Writing
7. They’re Not Crazy Diversified
8. They Look Forward to the Next Financial Crisis
9. They Get Rich Using Other People’s Money
10. There Are Separate Investments: For Now & for Forever
11. They Look at the Life-Long Value of the Purchase
12. They Use Their Network as Safety Nets
13. They Don’t Take Advice from People Less Successful Than Them
14. They Do Their Best to Alter the Rules in Their Favor
15. They Set Goals & Plan Their Year Using a Different System
For the Aluxers who are more of a video junkie than a bookworm, here’s all of the information packed in our YouTube video:
With that said, let’s get started. Here are 15 secrets of the rich!
They Focus on Getting Their Money Early in Life
Right off the bat, this goes against almost every possible financial advice out there. Everyone who’s trying to get rich teaches the same ideology, of skipping Starbucks and putting those 4 dollars every day into an investment fund and by the time you’re 65 you should be a millionaire.
The rich don’t think like that.
The rich focus on getting their money right, FIRST!
Every successful entrepreneur and investor will tell you how in the first part of their journey, they went all in on building, which made them rich. Yes, you live like you’re poor, but not because the $4 you save on starbucks will make you rich in the long term, is because every single penny goes into the business or venture.
Contrary to popular belief, a penny saved isn’t a penny earned! It’s just a penny.
Instead of saving 1-2% of your income by limiting your consumption, go all in, reinvest every single dollar that you don’t need for basic living needs into a project that has the potential, if executed correctly to help you make the jump into a new wealth bracket.
Most people live with the stress of money and debt their entire lives. You can not imagine what not having to worry about money does to your lifestyle, especially if you can get it done early on in your life.
So… focus on getting your money right!
Corporations Use a Different Set of Rules Than Individuals
This is where being financially literate changes the reality in which you live.
To be financially literate means that you understand that there are different rules for different entities and are able to apply these for your personal gain.
In this day and age, not understanding money is a handicap!
To drive this point across in the simplest form possible here’s an example:
As an employee, you earn money when you get paid, right?
Out of the amount you earn, 30 to 50% gets taken away in taxes by the government. You’re left with 50% of what you earn, which goes towards living expenses and whatever else you want to spend money on.
Here’s what most people don’t know!
When a corporation or business earns money, they don’t get taxed right away as you do, the employee, instead they are given the option to spend some of that money first – usually by reinvesting it in the business – and get taxed on what is left after all those expenses.
If a business chooses to reinvest all the money it has generated in the current fiscal year, the government has no profit to tax, thus paying 0 taxes.
The good news is, setting up a corporation for yourself is incredibly easy, doesn’t cost much and you don’t need any employees to get it done.You can start a corporation just to optimize your own expenses and it’s completely acceptable from both a legal and moral stand-point.
They Invest in Things They Understand
How many of you lost money with crypto? How many of you lost money in a pyramid scheme?
We can’t believe that this counts as “a secret” but Most people lose money when they go into projects they don’t understand. We’ve seen it happen over and over again.
Only invest in things you know better than everyone else, otherwise you’re gonna go from one loss to the next.
Even here on YouTube we get spammed by training programs from gurus who promise incredible results with Facebook chat-bots, or by doing Alibaba to Amazon arbitrage and they keep buying ads because people keep buying into the illusion of a simple 3 step formula.
The rich don’t chase the new shiny thing every month, instead they keep drilling down on one thing until they master it and make sure to leverage this competitive advantage in order to cash in.
If you know cars, do cars. If you know social media, do social media.
Invest only in things you understand!
Resource: Where should you invest next?
They Build Notoriety – People Know Who They Are
Here’s one of the biggest secrets when it comes to trust.
People trust people they know!
Nobody is gonna buy anything from you if they don’t know who you are!
Your crush will no date you if she doesn’t know you exist!
Your company will not promote you if you don’t stand out from the crowd.
The more people know who you are, what you do and what you stand for, the more they trust you.
The more they trust you the more options you have.
And thanks to the technology gods, there’s never been easier to break from anonymity than it is today. You have access to billions of people all logged in into social media platforms just waiting to be introduced to you.
10 years ago if you wanted people to hear from you, you had to either get on tv or hustle your way into interviews in the local newspaper or magazine. Today, with the tap of an icon your message gets sent to millions.
You’ve been here on Alux for a while now, you know who we are, what we do, what we stand for and the type of quality we deliver. That’s why you keep coming back because to some degree, we build a level of trust with you and we take pride in the quality of our community. It isn’t just about the numbers!
You want to be everywhere!
They Focus on Income, Not on Saving
How can you increase your income?! That’s the only question you should be asking yourself until you have more money than you will possibly need.
There’s this saying every rich person knows that most people are probably unaware of which goes like this:
Nobody saves their way to billionaire!
And it’s true. Real wealth is built and not wasted. The saving part only comes in AFTER you’ve maxed out the income and even then you should first figure out where to move that income next in order to generate new revenue, which this time maybe doesn’t come with a ceiling.
Every rich person out there is constantly bringing in more and more money. Why?
You want to be rich NOW!!! Not when you’re in your 60s..
Who cares you can buy your dream house when your body doesn’t allow you to go up the stairs anymore?!
Focus on income, not on saving!
This was one of the fundamental rules of wealth we learned from a great book called The Millionaire Fastlane, by MJ Demarco which everyone in our community should read if you haven’t. In it you’ll learn how to get this done and why some popular advice you got is plain BS.
We believe in it so much, that if you go to alux.com/freebook and sign up, you can get The Millionaire Fastlate for free as an audiobook. The price for your fist audiobook is covered by our friends at Audible who’ve been supporting our community for over a year now!
Go get it right now! alux.com/freebook
Always Put It in Writing
You’re not a kid anymore, you no longer believe in pinky promises.
As adults we figured out ways to make sure people held their end of the bargain. Yes, there is a such thing as a handshake deal, but it’s been waaaay to long and waaaay too many people got screwed over by them, so why take the risk?!
The rich always put it in writing, while the poor believe in some sort of reinterpreted imaginary nobility. Here’s the truth:
Circumstances change and everyone is just trying to protect themselves!
And so should you!
Your boss asks you to do something extra at work, make sure you have emails.
Your supervisor approves a course of action that didn’t go as planned, make sure you have receipts.
Any deal you make, anything that can possibly come crushing on you that’s not actually under your control, put it in writing.
When everything is transparent, people are forced to be honest.
They’re Not Crazy Diversified
Here’s another secret of the rich: it’s hard to hold too many baskets!
Throughout the years there’s been this false impression that the more diversified you are the safer your wealth is. This entire premise is false.
Why? Money needs to be overlooked, it needs to circulate, rotate, redistribute and you can’t be a master of that many trades.
Rich people on average have their earnings split into 3 separate wealth pools, in some very special cases, a maximum of 5.
The most successful entrepreneur of our time, Elon Musk is barely able to keep 4 companies going, without any other backup plan, because it would require too much of his time.
The richest man in the world, has 3, amazon, blue origin and more recently the washington post – which to be honest was more like a passion project.
Why don’t rich people diversify more? Simply put, it’s because in order for something to perform incredibly well in the market it needs professional oversight. Yes, some people have successfully hired others to take over for them, but that only happens in low volatility industries.
When you know you’re the best CEO for the company that you built, you have the vision where it should go, it’s like shooting your company in the foot by bringing someone else. See what happened with Apple, when they brought in the CEO from Pepsi and fired Steve.
The most common segments of diversification are as follows:
- Real estate & Land
- Stocks & Funds
They Look Forward to the Next Financial Crisis
How many of you vividly remember the financial collapse of 2007? Who lost the most money then?
Do you think the rich did? Nope, it was actually the poor and middle class.
The banks got away unschaved. The government bailed them out. They simply printed more money and returned to business as usual, while everybody else lost almost everything.
The valuable thing about market corrections is that it serves as a cleanser for the marketplace.
It gets rid of the pretenders.
Meanwhile, the rich are patiently waiting with their wallets out for the next collapse. Why? That’s their version of Black friday. Buildings, land, raw resources and companies at a fraction of the cost.
They buy things that have intrinsic value. Let’s take land for example: the fact that you can purchase a part of the surface of the earth which could remain in your family indefinitely and be monetized throughout time in different forms is mindblowing. The fact that you can get a discount on that should give you a better understanding of how the rich look at financial crisis.
They Get Rich Using Other People’s Money
We mentioned this a couple of times in the past and every time we do, people react with confusion. “What do you mean other people are giving you their money so you can become rich?” because in their minds and in the minds of most people this makes no sense whatsoever.
Yet the rich, have known and used this for years. it’s one of those secrets that seems complicated to people who don’t understand money.
This happened, because regular people use others people’s money all the time, but they’re the ones who end up paying it back. They use credit cards to buy groceries or fix the car, once the expense is made, they need to bust their behinds to pay back the loan. Same thing happens with the education. You’re using other people’s money to study, but once you’re done partying, the bill comes and congrats, now you’re under crushing debt.
Rich people borrow money and have other people pay it back!
Let me say that again so you understand what I’m saying:
Rich people borrow money, but other people are paying it back!
If this is the first time you’re reading one of our articles you might think that we’re insane and that there’s no way this is true, but it is. This is how the rich get richer.
The rich go to the bank and borrow money to build an apartment building. Then sell the apartments to you, the buyer with an added costs. They take your money and give the fair share back to the bank, pocketing the difference.
The rich have been buying houses and buildings without putting any money down for years and you’re just hearing about this.
How is this happening, because you might not understand that there are more than one types of value. Ideas, management and execution are also valuable apart from money.
This is the reason why steve & woz, zucks, the founders of google managed to get rich.
They had an idea, they knew how to execute it, and then used other people’s money to make it happen. In this trio of variable, money is the least valuable because it’s the most available.
There Are Separate Investments: For Now & for Forever
This is another thing most people don’t consider. Why? Because they’re too busy surviving until the end of the month to think long term. But this isn’t always the case. Short and medium term thinking is very different when it comes to the rich versus the average individual.
Basically, the rich have two types of investments, those that will make them money soon and those that will increase in value generations from now.
The key to building what is regarded as “Legacy wealth” is to know how to distinguish between them.
Anything that should turn a profit within the next 10 years is considered a “For now – investment”.
These are ventures and new businesses, fliping goods and properties, taking advantage of a trend happening in the marketplace or a particular event or technological breakthrough.
“For Forever” investments are those that not only will store value but will continuously appreciate in value for the next 50 to 100 years and even more.
Art, land, gold, heritage brands are just some of the forever investments rich people make.
This later form of investment secures wealth for the entire family tree and makes sure that the next generations have a different starting point that will allow them to increase the family wealth even more.
One great example of this in Italy. The richest families in Florence in 1427 are still the richest families in Florence today. For almost 600 years, they managed not only to not waste any of it, but steadily increase it through time.
If you’re just starting out – and judging by the fact that you’re reading this article right now, you’re probably born in the middle class – you should immediately focus on FOR NOW investments. Figure out how to take advantage of the times we’re living in, in order to get that initial round of wealth.
They Look at the Life-Long Value of the Purchase
When making a purchase, you want to squeeze as much value from it as possible. This is why most rich people seem like cheap to some of you. Why don’t they just drive the latest Range Rover model? Because their 10 Year old Mercedes G-Class covers their need and still has a long way to go until there’s no more value to be drawn out of it.
A burberry trench coat could last you a lifetime if properly taken care of, yet you’re going to spend 10 times that amount buying a new one from a cheap retailer every 2 years.
We’ve reached a point where because of the yearly technology cycle dictated by companies like apple, the majority of the population has been programmed to buy, use and replace within 12 months, as the new model comes out, despite only slight improvements.
A piece of technology is justifiably replaceable after you’ve maxed out its usage. An iphone 8 gets 90% of the same results as the brand new iphone 11.
Yet people “upgrade” because the marketing works.
It all boils down to an old saying: QUALITY over QUANTITY.
What we’re disappointed in seeing, is that formerly quality driven luxury brands, now use their heritage to sell naive consumers the idea of luxury without the backing of quality.
Remember these Balenciaga sock sneakers that were all the rage 2 years ago. They’re irrelevant today. Same with the new rat-shoes, 6 months from now, they’ll be irrelevant.
The quality is no longer there and the average person can not discern from true luxury and pretend-luxury.
They Use Their Network as Safety Nets
You wanna know why rich people rarely go broke? It’s because of their networks! We’re talking here about truly rich people, the type that built wealth and didn’t just come into riches by accident or by talent.
In their journey, they carefully select individuals and enter in mutual beneficial partnerships. It’s like having friends with benefits, but the benefits are not sex, instead it’s financial freedom for everybody involved.
Not only do they rely on each others advice and frequently pool resources in order to minimize risk, but they act as safety nets for each other if it ever came to it.
That’s why some people can lose everything and in just a couple of years get back on top. They have their name, their contacts and their friends there.
This would be a great opportunity for you to take a moment and think about your friends, the people you surround yourself with.
How many of them would put their own money at risk in order to help you if you really needed it?
It might be time to get out of the house more and build better relationships, just like the rich do.
They Don’t Take Advice from People Less Successful Than Them
Your here because you want to learn the secrets of the rich… well, the secret is:
There’s nobody out there who’s truly self made!
It’s usually a combination of opportunity, skill,right guidance, timing and sometimes luck.
The rich rely on professional help and expertise to get ahead in life. They have mentors, advisors and professionals who they rely on in order to make sure they don’t screw it up.
Yes, these people are quite expensive, but they earn their way in gold.
The type of advice you’re getting here, every Sunday would cost you a fortune if you were to go buy it, the same way the rich do. We made sure we build a very successful media company before we began reaching out to our friends and advisors in order to spread this type of insights.
This has been one of the driving differentiators between us and all the noise out there. They don’t talk about these type of things because they don’t know it. For the same reason why we rarely mention forex or day trading on our channel. We’re not successful in that regard so we keep our mouths shut.
If you want to be a great athlete, take advice from an even greater athlete.
If you want to be a great artist, follow the work of other great artists and emulate them.
Never be afraid to pay for knowledge or insights that you can see how it benefits you. We all connect to different styles of teaching so find a mentor that works for you.
They Do Their Best to Alter the Rules in Their Favor
This is the reality of having enough wealth that you can shift the rules of the game.
We give gold nuggets like these daily on our instagram @alux, and those of you who follow us there might have seen this one recently which goes like this:
If you don’t like the way the table is set, turn the F*in table!
It caused quite a bit of controversy, but it’s the truth. You’re not forced to just sit down and swallow whatever others are throwing in front of you.
You’re free to move to where you’re being treated better. You’re free to use any rule of the game for your advantage. It all just makes the game more interesting.
But as with everything in life, there’s always an upside and a downside to this. In some cases it leads to abuse, where if you give someone enough power to rewrite every single rule, they will make sure to give themselves preferential treatment.
We’re not sure if you’re aware of this, but Hasbro recently launched the female version of Monopoly, because giving men and women equal chance at playing the game wasn’t feminist enough. Instead in Ms Monopoly, Women start with more money & if you’re a woman and pass go you get more money than your male counterparts, because why not, who cares what feminism even means anymore when we can change the rules in our favor if that means we can cash in on a trend. How stupid is this?! But hey, you get to vote with your money!
Resource: 15 Things Money CAN Buy
They Set Goals & Plan Their Year Using a Different System
This is something we’ve been aware of for a while and since implementing it, it has been a game changer. For the past 6 years, we’ve personally hit every single goal we’ve placed for our company following a unique framework we’ve put together after analyzing thousands of successful people.
While the average person makes a few new years resolutions, by the time february comes alone, they’ve already failed to keep up with them. That’s not happening with the rich.
That’s why you see super-successful people keep climbing year after year, success after success.
They set goals and plan their year according to previous performance and realistic growth potential. Then they break their goals apart and create systems that allow them to maximize their chances of achieving their goals. The secret juice is in how to break them apart, how to create supporting goals for the big ones and how making a few small changes to your daily schedule can lead to big results.
This is another premium experience we’re currently developing here at Alux called: GOAL Mastery which we want to make available by the end of the year, just so you can test it out in 2020 and see what it would be like if you planned your year like the super successful do. After the positive reviews of our Meditation course, Goal Mastery is here to provide you with the same techniques and insights rich people pay tens of thousands of dollars for.
You can get on the waiting list by going to alux.com/goals or by clicking in the top right corner and adding your email. We’ll let you know when the experience goes live so you can try it for yourself.
Wanted to take this opportunity to congratulate you on investing in yourself today! Most people did not take the time today and get introduced to these concepts and for this you have our respect. We’re curious to know, after reading this entire article, which one from the list sparked something in you? We’ll be lurking in the comments replying to those of you who want to partake in this conversation!