1. Money is meant to be invested, not saved: Well I don’t deny the fact that everyone should have an emergency fund in their bank which obviously comes from Saving Money. But most of us do excessive saving and put that money into our favorite Fixed Deposits. 

My cousin saves a lot of money and he’s an expert at it. Once he saves 1 Lakh successfully, he creates a Fixed Deposit with an interest rate of 6.5% whereas the average inflation rate is 7%. He’s clearly losing 0.5% every year.

2. Debts aren’t always bad: Middle-class people always keep themselves away from debts as much as they can. But they are the ones who easily fall into the trap and blame the system. Well, there’s a thin line between Good Debt and Bad Debt.
Goods Debts help in creating future income, investments, or self-value whereas, Bad Debts borrow from your future-self. Refer the infographics below:

Good Debt vs Bad Debt

3. Not counting money in front of opportunities: I earn 1000s of dollars every month from my blogs. And recently, I have started training others for free. But, 90% of students drop from the training when they see they have to invest some money to buy domain and hosting. They forget about the potential money or their dream of making money from blogging.

This also shows that middle-class people tend to save money rather than investing it as mentioned in the 1st Point. But you will find them watching newly released movies eating outside without any guilt. 

4. Spend passive income and invest earned money: Riches generally have multiple income sources and most of them are passive. They never spend their Earned Income or Active Income. Earned money is invested to generate more passive income and all the luxuries come through that. 

How the rich spend their money

5. Never Stop LearningUpskill yourself: When was the last time you touched a book? Maybe, during your last semester exam of Graduation? Whereas the rich have a huge collection of books which they have read. Bill Gates and Warren Buffet being rich and having all the luxuries, still read a lot of books (Check a list of 52 Personal Finance Books for 52 Weeks).

So to conclude, riches don’t do anything magical or special they just manage the money in a better way. Anyone can acquire these habits and choose the path of being rich. 

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