Wealthy people know the difference between income and capital and they don’t use capital for living expenses.
They know that there is a world of business out there planning and plotting every day to separate you from your money by causing you to fear something, or by telling you that your misery is caused by “x” and they have the way to relieve your burden. They don’t fall for these schemes.
Wealthy people know there is good debt and bad debt and they don’t pay 27% interest on their debt like some credit cards charge. They only pay interest if it will make them more money in the long run. They know that banks are like the mafia who make a percentage on everything. They resist helping the banks get richer unless they can profit, too. For example, they buy a property at 5% interest and sell it for a profit, making back their interest times 10. They understand leverage and what is taxable and not taxable and what is above the line and what is below the line.
They know the difference between paying for real stuff and paying for concepts. For example real stuff is food, transportation, housing. Concepts are insurance, interest, status and the latest trend.
They know not to waste. The understand that if they lose 50% of their wealth, they will have to make 100% to get back to where they started.
They understand diversification and that sometimes commodities will do better and sometimes tech will, and sometimes blue chips and they don’t sell low and buy and high.
Wealthy people know they will never get rich by selling their time and they don’t seek to be a wage slave.
Wealthy people understand that wealth is only one compensation of a good life and probably not the most important component. One can have a wealth of knowledge, a wealth of good will, a wealth of talent, a wealth of friends and family, and a wealth of physical and mental stamina and good health, and wealth of time. One can have a wealth of healthy children and healthy relationships. One can have a wealth of good relationships and fortune and most wealthy people I know would trade their financial wealth to restore their health, revive their loved ones and have more time. I certainly would.
Being wealthy is like being thin. There is the feeling of being wealthy and the feeling of being thin and it doesn’t always correlate with the reality of the situation. This is why we have eating disorders and body dysmorphic disorder. This is why some with money never feel satisfied or like they have enough.
Wealth provides options, but many of the options are not what you want.
For the most part, once you have some wealth you can either plot to 1) get more 2) do something great 3) give it away to family or good causes 4) support the arts 5) spend as much as you can or 6) forget about it and just try to enjoy yourself and do some good in the world. I vote for 6.