• the rich think about investing and saving
  • they have brokerage accounts ( for mutual funds, index funds, shares)
  • they have a business , which they own entirely or have a stake
  • save more than 50% of their income and re-invest
  • live like the poor – bare essentials , no frills , a frugal life
  • drive 10 year old cars , live in modest homes ( it’s all stealth wealth )
  • they have a very good idea of their money flow – income , expenses , savings
  • They have a NET WORTH mentality – Income minus liabilities = assets
  • They speak financial terms – very well versed with all the legal terms for finance
  • The rich network, read daily, do something to be better today than yesterday
  • They limit their social media and other screen time, avoid binge watching Netflix
  • They re-invest 50 % or more of their income back into the business
  • They find new ways of learning, attend webinars, seminars to increase their knowledge.
  • The pool their money and lend it into peer to peer platforms
  • They use the credit cards to get free travel rewards, cash back and hotel rewards because they fully pay off their credit cards before the end of the month.
  • The rich are known to invest in alternate investments – art and fine wines
  • Expensive Collectible Art has outperformed the stock market returns over the last 50 years (a few names like Ravi Varma , MF Hussain , Monet , Rembrandt , Van Gogh ,Picasso , just to name a few )

the middle class thinking is all about consumerism

as soon as the salary hits the account , they go shopping – for clothes , for phones , the latest television – you get the picture ( pun unintended ).

the middle class

  • has a lot of debt – typically credit cards , home mortgage , car loans
  • has no idea where their money is going
  • don’t budget their money or follow a budget
  • result .. there is too much month left at the end of money
  • live pay-cheque (pay-check) – to pay-cheque (pay-check) , have no emergency fund reserves
  • have no clue about the financial terms , no idea what is the difference between interest rate and APR ( Annual Percentage Rate )
  • have no plan of getting out of debt
  • love spending time on social media , binge watching netflix

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