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15 Mistakes Rich People Make That Make Them Miserable

3 April 2021

It May Come as a Shock to You, but the Rich Aren’t Always Happy. Money Makes Them Commit Mistakes That Make Them Miserable.

Money doesn’t buy happiness, but it does buy us choice. Often during the pursuit of money, rich people make costly mistakes that makes them miserable and creates problems for them as you’ll see in, 15 Mistakes Rich People Make that Make them Miserable.

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You’ll become extremely miserable if you try to read this long text till the end, since it is so boring. Switch out to the video version of this article:

With that out of the way, let’s bounce back to the article.

1

Rich People Become Penny Wise and Pound Foolish

Remember in our video, 15 Things You Get Wrong About Wealth, we said being rich means you have cash in your bank account, wealth means you have cash in your unborn kid’s bank account.

Author of “Rich Habits” and “Change Your Habits, Change Your Life,” Tom Corley spent 5 years studying the money habits of rich people and the problems in it. One of the mistakes that crop up often is counting pennies and then making emotional, rash decisions and spending on an overpriced vacation, a boat or jewellery, ultimately creating debt.  

Corley says, “While it’s a rich habit to watch your pennies, it is a poor habit when you take those hard-earned pennies and make an expensive emotional purchase.”

Aluxers, you can listen to both these books on Audible – remember to claim your free book using Alux.com/freebook.

2

Rich People Don’t Have a Handle on Their Money

Often rich people don’t have a clue of what or where their money is going every month, and that is one of the biggest problems.

It’s great if you’re receiving a hefty salary, but do you know exactly where it’s going?

You will be horrified to realize the amount of money being wasted every month. Look out for free trials that are out of their free trial period, streaming services you don’t use or additional bank charges you don’t utilize. CNBC.com recommends setting a reminder on your phone if you have signed up for a free trial, so that you’re not paying subscription fees for something you only tried out once.

Be sure to subscribe to our channel to stay on top of your own finances, as have many helpful hints to help you succeed.

3

Rich People Believe a High Income Equates to Wealth

Aluxers, we just mentioned the hefty salary – but simply making a lot of money each month doesn’t mean you can blow it… well maybe you can buy a few cool things, like the heated cat house that would be perfect for your feline companion, or the Ostrich pillow, because you can’t make money when you’re tired!

A high income doesn’t automatically make you wealthy… it’s what you do with that high income that secures wealth, which is why we recommend you watch our video, 15 Things You Get Wrong About Wealth.

4

Rich People Have Debt

One of the commonest problems with rich people is that they love instant gratification. And it doesn’t matter if the purchase sets their credit card racing, all that matters is that the coveted item is now theirs. Well, technically it’s the banks – but you get the point.

American investor, Charlie Munger, once said, “Great investing requires a lot of delayed gratification.”

Forbes.com published an article titled “The Truth About Instant Gratification In Business And Life,” where they bring forward the idea that “Instant gratification creates addictive tendencies.” So, what that means for rich people is they get trapped in the cycle of instant gratification, dragging themselves further and further into debt, making it very difficult to claw back out of.

5

Rich People Try Keep up With the Jones’s

This mistake is not exclusive to rich people, but to anyone who tries to one-up another. Besides it being a complete waste of money, it causes anxiety, stress and wastes your time.

And of course, when you’re rich – one-upping the Jones’s costs you a lot more. Oh, they bought a boat, now you go off and buy a yacht.

We certainly don’t have anything against yachting, as seen in several of our videos like – 10 Reasons the Rich Go YACHTING or Top 10 MOST EXPENSIVE Yachts in The World, but we do have an issue with incurring debt to purchase the yacht.

6

Rich People Think They Know Everything

Aluxers, one of the common rich people problems is that they make the mistake of thinking they know what they’re doing. Money has a funny way of making people think they’re smarter than they really are. New money is good, but if it’s not used or invested properly, it’s completely useless.  

Rich people become miserable when people try offer sound advice on how to manage their money, and then they become miserable because they didn’t take the advice and things fall apart.

Either way, keeping yourself educated, listening to people who have walked a similar path and seeking professional help will all help you maintain your wealth and have it grow exponentially.

7

Rich People Have No Retirement Plan

Aluxers, thinking about retiring might be a comforting thought, but worrying about how you’re going to afford it… not so much.

Many rich people, and yes, we are generalizing, prefer to bury their head in the sand and not think about the boring, financially draining problems and aspects of retirement. They prefer to go with the knowledge that they’re rich now, so why would things be different down the line?

According to Nasdaq.com:

“1 in 3 Americans Has $0 Saved for Retirement.”

“23% have less than $10,000 saved.”

If you’re rich, remember to save some of that money for a rainy day or the time of your life when you should be enjoying the benefits of all your hard work!

8

Rich People Find Fault; Wealthy People Find Ways to Improve Things

You’d swear that rich was the new poor, but Aluxers, there is a clear distinction between being wealthy and being rich. And if rich people could avoid these errors and problems, not only will they start networking with the right group of people, but they’ll find they can do so much more with their money.

We explained a similar concept in our video, 15 Reasons why staying poor is a choice, where we mentioned that poor people choose to see obstacles instead of opportunity. The same applies for rich people. If something goes wrong, it’s easier to point a finger than take responsibility.

Wealthy people would rather rectify the situation than play the blame game.

9

Rich People Don’t Have a Diversified Portfolio

To be successful and to accumulate wealth, you need to have a well-maintained portfolio. Your portfolio needs to reflect your future capital requirements.

Do rich people even have a portfolio? Or is the money coming and going as quickly as Megan Markle blitzed in and out of the monarchy?

Aluxers, it’s time to do something about this. Make an appointment with a financial advisor, play open cards with what you have and where you want to be with your finances and start taking the appropriate steps to get there.

10

Rich People Think There Is Not Enough Wealth to Go Around

Rich people can behave like toddlers fighting over a baby Yoda plush toy, believing that only one person should benefit from the toy, and that’s themselves.

If they could work things out, they’d realize that there is enough Yoda to go around and the games they could play together would be so much fun.

Same applies to wealth… Aluxers, there is enough for everyone. Celebrate the success of others. They’re on their own journey, and just because they’re making a sh*t ton of money, doesn’t mean you won’t!

11

Rich People Clock in Hours, as Opposed Passive Income

Let’s use the example of a doctor. We all know that doctors are rich. But in order for a doctor to accumulate her wealth, she needs to work many hours. And she has to physically be present to earn the money. She can’t go to sleep at night and earn her wealth passively.

Building wealth by means of passive income is the way to go. One example is to put the heavy work in and create a powerful e-commerce platform that eventually sees orders coming in from customers, the orders are fulfilled by a distributor and sent directly to the customer, and you’re resting at night-time making the perfect passive income.

We highly recommend using Shopify. They offer great services and tools to make your dream website a reality.

Go to alux.com/sell and get 2 weeks of premium service for free!

12

Rich People Believe Everyone Wants Their Money

Like there’s conspiracy to take all their hard-earned money. In a way, it makes rich people suspicious of making new friendships, suspicious of people offering competitive rates for services and even suspicious of family!

This is a huge mistake Aluxers, because it can be exceptionally isolating which leads to a miserable and lonely rich person.

As reported on marketwatch.com, “research summarized by the Harvard Business Review concluded that “wealth is isolating … Psychologically, the acquisition of wealth—and more generally, possessions that signal high status—makes us want to distance ourselves from others.”

13

Rich People Can’t Differentiate Between Wants and Needs

Researchers from Purdue University believe it’s possible that when there’s extra money, it could fuel “desires such as pursuing more material gains and social comparisons, which could, ironically, lower well-being,”

And Aluxers, it’s been proven that material possessions do not ultimately bring extended happiness. Experiences are what brings happiness, love, feeling appreciated, showing appreciation and strong, healthy relationships with our peers and family.

14

Rich People Let Emotions Get in the Way of Investing

We acknowledge it’s tricky not to let our emotions get in the way of investing. As Investopedia.com explains, “Investing based on emotion (greed or fear) is the main reason why so many people are buying at market tops and selling at market bottoms. Underestimating risks associated with investments is one reason why investors sometimes make suboptimal decisions based on emotion.”

How do we invest without emotion?

We need to:

          Set specific goals.

          Stay up to speed with market trends.

          Not panic.

          Don’t do what everyone else is doing.

          Keep your portfolio diversified.

          Ask for help if needed.  

15

Rich People Don’t Have Sound Investment Plans in Place

Aluxers, building wealth is all about the long-term investment of your time, energy and money. Rich people forget this and can’t understand how they had it all, and next minute, it’s gone.  

If you want to make smart foolproof investments, check out 15 Red Flags in Investments.

Question:

What mistakes do you believe rich people make that makes them miserable?