9 Things Rich People Invest In – Millionaire Mind
There are times where you have some extra money that you managed to save but you’re not entirely sure what to do with it. Interest rates are extremely low and that means that keeping your money in the bank is not worth it. If you simply don’t know how to invest that money you came to the right blog.
Today, we’re going to talk about the nine things that rich people choose to invest their money with. These are some recommendations to invest your money the right way. That way you can set up a goal, set up a path, and hopefully achieve your financial goals sooner rather than later.
The first item rich people invest, it’s no surprise:
1. Real Estate.
Most of us tend to choose real estate because we want cash flow at the end of each month. Every month, we want to be able to collect rent, pay our mortgage, and feel like we have some safety net.
The way rich people think about it is that they look into the possibility of using real estate as insurance. Just like you buy insurance for your car, for your home, they view real estate as insurance to protect against currency devaluation. We know that especially nowadays with the pandemic and everything that’s going on, the more the government prints out dollars, the less the dollar is worth.
They want to have the ability to protect their portfolio against any ups and downs in the market, and that’s by doing it through real estate. Over time, hopefully, if you hold long enough, the real estate is going to appreciate and it’s going to increase in value.
Even if it does depreciate eventually, it’s not the end of the world, because you can actually use those losses and deduct that from your taxes, which is something that you cannot do with currency.
2. Stock market.
They don’t have to get their hands dirty in a way because that way you don’t have to worry about collecting rent or anything like that. You can just simply open up an account, call it Robinhood, Charles Schwab, Vanguard, whatever platform, TD Ameritrade, and they can just do everything from the comfort of their home. It provides them easy liquidity as opposed to real estate.
Real estate is liquid to a certain degree because you do get cash flows but it takes a little longer to sell real estate. That’s why they want to diversify into something aside from real estate, and that includes the stock market.
The goal is to protect your money against currency devaluation. If you were to sell your stock sometime in the future, you can actually make money off of it. If you sold it when you were at a loss, you can actually take deductions in your taxes, which is something that you cannot do with your currency.
3. Precious metals: gold and silver.
These two are by far the oldest, the most ancient type of currency ever existed in the world. You have seen civilizations rise and fall, but gold always withstands and lasts all the way up until today.
Precious metals such as gold and silver are an excellent option to invest
You’ve seen currencies created in the past destroyed. Even up to modern recent history, you’ve seen currency that all of a sudden doesn’t exist anymore. The Euro was an example, up to a couple of decades ago, didn’t exist and now, it’s really flowing all over Europe.
It’s going to protect you from the modern currency going away or the modern currency just simply depreciating and losing its value. You can hold a bunch of gold bars or gold coins and silver and just protect yourself and sell it somewhere down in the future if you need access to liquid cash.
4. Their education.
If you have a college degree, that’s excellent, but if you do not, for whatever circumstances, you can still make it by educating yourself.
Education in terms of learning how to invest. Whether it’s real estate, whether it’s the stock market or any precious metal. People that do not invest in their education make big mistakes. You need to educate yourself to discover what’s the right way to invest.
Rich people know that they can delegate those investing activities to other people, but they still need to be on the know. They need to understand so that they don’t lose their money in a wrong move done by someone that’s basically outside of their control.
5. Mental health.
Getting to the top is the easy part of achieving things. It’s maintaining at the top what makes it extremely difficult.
When you’re at the top, you attract two kinds of people:
- People who are probably smarter than you because they want to compete against you. That means you have to educate yourself even more so that you can continue to stay at the top and create the best product possible, so that way your competition doesn’t knock you out of first place.
- The second type of people that rich people tend to attract is people who just simply want something from them because now they have money and they attract people who are not necessarily there for them but they’re mostly there just to take away from the money that they’ve worked so hard to achieve. Either situation, whether you’re dealing with someone who wants something from you or dealing with someone who’s competing against you, that creates a lot of anxiety and stress.
6. Physical health.
People with money care a lot about their health, which is why it is something they invest in
Why is that important? If you’re not physically healthy, you will not be able to proceed or to work or do everything that you need to do because guess what? The doctor is going to send you to bed. Even if you try to work as hard as you can, you cannot because your head is aching, your back is aching, and that’s not good.
For the most part, they try to incorporate a lot of learning as they are working out.
Technology, it’s a great tool to help you make time, create time. Why? Because you can delegate redundant tasks, mundane tasks to a computer or software that’s going to speed it up, accelerate everything for you and get you more time for yourself so you can invest that time into things that truly matter whether it’s a strategy to help you continuously grow or maybe quality time with your loved ones.
8. A good diet.
That means a balanced diet that’s going to give you all the nutrients that are necessary. The right amount of protein, the right amount of carbs, the right amount of fiber so that way you are at your maximum highest point of productivity as possible.
Eating correctly is not the same as being full. You can easily go into a McDonald’s and get a nice burger or some french fries and coke and you will be full. It will probably help you fill a craving, but it won’t give you the necessary nutrients so that way you are performing at 100% or 200% if you want.
9. Invest in people.
Your network is very important. The people that surround you are going to either make you or break you and that goes across the board.
How many times have you heard about a business owner who has a great model, a great product but they feel overwhelmed because they just simply cannot step out of the business and therefore, it has cost them their personal life, their family because of that reason. That’s why it’s important to invest in people.
If they find a team member that gets the work done and not just that, they encourage everyone else in the team to continue to perform, that’s someone they tend to treasure, they don’t view them as a threat. If anything, they encourage them to do more.
They send them to conferences, they send them to training so that way they can continue to expand their skill set. They know that the more they can delegate, the more they can grow their business and educate themselves as well and at the same time, invest time with their loved ones.
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