Habits are the only difference between billionaires and you.
Most people, if they want to accumulate lasting wealth, will need to unlearn some of their bad habits and replace them with good habits.
For example, what do you do whenever some extra money flows into your life? If you have a habit on spending it on something you don’t really need, it might be time to rethink.
In this video, I show you some of the world’s richest billionaires and how they choose to spend their personal money. You may be surprised!
WHAT WE ARE TAUGHT
From a young age, we are taught that money is there to be spent. As a kid, if you received some money, someone would probably ask you, “what are you going to spend it on?”
A smarter question to ask is, “where am I going to put this money to work?”
You should find assets to invest our personal money into, where it will grow and multiply. This could mean investing into your own business, or other asset classes. At the same time, you should limit the amount that you spend on liabilities, which will allow to money flow out of your account as fast as it flowed in.
Most billionaires understand this concept. When they receive some extra cash, they prefer to invest it into their companies and assets. They choose not to spend it on themselves and limit their spending on extravagant consumer goods and status symbols.
Carlos Slim was once the richest person alive. You may be surprised to learn that he has lived in the same modest 6 bedroom home for the past 3 decades. His bedroom is the size of a hotel room. He has no private chauffeur, but he prefers to drive himself to work every day.
When extra money comes into his life, he doesn’t spend it on himself and things he doesn’t need. He invests it into his companies.
He’s not alone. Amancio Ortega, whose net worth was estimated to be $64 billion, dresses very simple and drives an Audi. Mark Zuckerburg, whose wealth was estimated at $33 billion, drives a $30,000 hatchback.
Perhaps the most extreme example of a frugal billionaire is Ingvar Kamprad, who amassed a $40 billion fortune thanks to founding IKEA. He only buys second-hand clothes. He even prefers to get his haircuts during business trips to developing countries, because they are cheaper than at home.
CONTROL THE COMPULSION
Now, you don’t have to be overly frugal or cheap to the extent of Ingvar Kamprad, but you do need to control the compulsion to spend every last cent that flows into your account. When you can do this, you may find that accumulating wealth is easier than you thought.