I didn't always handle money wisely. It was a skill I had to acquire over time.
Growing up in a Chinese immigrant household, my parents were incredibly loving but also very frugal. We lived in a world where saving money by using coupons and reusing ziplock bags was the norm.
It wasn't until I entered the world of finance on Wall Street that I noticed a stark difference in the mindset of the ultra-wealthy.
They were less concerned with scrimping and saving, and more focused on investing and growing their wealth.
By observing and learning from their habits, I managed to achieve my first million by the age of 27. Here are four unconventional rules that rich people tend to follow, which most others don't:
1. Prioritize assets over appearances:
Rich individuals prioritize buying assets that appreciate in value and generate income over time, rather than liabilities that constantly drain their finances.
For instance, instead of splurging on a luxury car that depreciates rapidly, they might invest in a rental property that generates a steady income stream.
2. Embrace an abundance mindset:
Unlike many people who constantly worry about not having enough money and feel the need to hoard every penny, rich people have an abundance mindset.
They believe in their ability to generate wealth and are more willing to take calculated risks to grow their fortunes.
3. Think long-term:
Rich people understand the importance of thinking long-term when it comes to building wealth.
They are willing to delay gratification and invest in assets that may not provide immediate returns but will yield significant benefits in the future, such as retirement accounts and long-term investment portfolios.
4. Focus on financial education:
Rich people understand the value of financial education and continuously seek to improve their knowledge and skills.
They are always learning about new investment opportunities, tax strategies, and wealth-building techniques to maximize their financial success.
By adopting these unconventional rules and learning from the habits of the rich, anyone can improve their financial literacy and increase their chances of achieving financial success.