4 things millionaires and billionaires know that ordinary people don’t know
Ramit Sethi is an American businessman who became a millionaire at a very young age by starting a website while a student at Stanford University in 2004. In addition, he has also written books and sold courses on personal finance. Currently, he is a personal financial advisor, owning a fortune of about 30 million USD.
Ramit was born and raised in a middle-class family. His father was the breadwinner of the family, his mother stayed at home to raise the children. The family of 6 lives in poverty because of his father’s meager salary. Ramit said that thanks to going through difficulties, he has a more multi-dimensional view of money. His approach to personal finance is that as his wealth grows, he always finds a way to keep it going.
Self-made millionaire Ramit Sethi (Photo: Internet).
In one book, this self-made millionaire revealed some things that the world’s millionaires and billionaires know but the average person doesn’t. That’s why they became so rich. Here are those, in the words of Ramit:
Use your time wisely
For me, the most important thing is time. Wise people use money to buy time for themselves. You can hire someone else to do some of the time-consuming but not really lucrative tasks like cleaning the house. Or you can hire someone to teach you how to do something more efficiently and faster. That way, you’ll have more precious time to do the things you need to do and reap more benefits.
There are tons of tips on how to save money but few good tips on how to spend it
There is a lot of money advice on the internet today, and most of it is theoretical. That could be a way to spend 3 hours hunting for discounts and saving… $0.50 on toilet paper.
Meanwhile, the amount of advice on how to spend money is much less. Seemingly simple questions like “Should I buy luxury goods?”, “What do rich people spend their money on?”… almost don’t have many quality answers.
You are the one who defines the concept of “wealth”
The rich life, by my definition, is living in a rented Manhattan apartment for a decade, going to restaurants and ordering my favorites, and traveling with my family.
For you, being “rich” can be anything you can do to make yourself feel fulfilled and happy. Today, the way wealth is viewed has changed. You don’t have to be a millionaire, a billionaire, own a big house, or have a private jet to be considered “rich”.
Illustration: Internet.
Billionaire Warren Buffett has been living in his old house for decades without buying a luxury car or a villa, has a McDonald’s breakfast for breakfast, and will change from a Samsung flip phone to an iPhone in 2020.
Or a football player earning more than 800,000 USD/month, using a broken iPhone, cheap headphones but donating millions of dollars to help the poor in his homeland. He may be considered “rich” by everyone looking at his huge salary, but for himself, he considers himself “rich” when using his money to support people who were once poor like him.
So, you don’t have to be a millionaire or a billionaire to be considered “rich” by the traditional definition. Be the one to define it yourself!
Earning hundreds of thousands of USD and still losing 10 USD is a mistake
Making money is really hard. However, you should also know when to spend the money is worth it. For example, if you have to pay an extra 10 USD for a service or activity to happen faster than usual, do not hesitate to do so. And of course, for the not worth it, you should not spend even 1 USD.
Source: Medium
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