Rich People Are Sharing The Money Tips Only The Rich Know, Because It’s Time To Stop Gatekeeping Them

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Rich People Are Sharing The Money Tips Only The Rich Know, Because It’s Time To Stop Gatekeeping Them

At a time when inflation and America’s economy is among the biggest concerns in the upcoming election, people are naturally trying to find any way they can to hold on to their money.

According to

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, 37% of Americans do not have at least $400 for unexpected expenses. Meanwhile, 21% don’t even have an account for emergency funds.

A few weeks ago, we

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finance grads and rich people, in general, from the

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to chime in with money tips that keep the rich wealthy. Here’s what they said:

data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///ywAAAAAAQABAAACAUwAOw== James Devaney / WireImage

1.”You want to play it safe, and if something seems to good to be true, then don’t listen to the person or people saying it.”

“While I’m not rich and wealthy, I’m pretty well off, so I want to share some financial tips that got me where I am today. First, don’t spend all your money on things you don’t need and can’t afford; instead, invest it into things that matter to you or benefit you. Don’t feel pressured into spending all your money on those trends on TikTok or stuff to make you cool. If you can afford it, great! If you can’t, then don’t buy it. Second, never spend a large percentage of your salary on a house or a car because even though you can pay for it, you will likely need some money for surprise expenses. Third, and finally, you want to play it safe, and if something seems too good to be true, then don’t listen to the person or people saying it, as often they want to scam you out of your hard-earned money.”

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2.”Real life has a LOT of high-risk, high-reward scenarios.”

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“It’s so, so much easier to make money if you have money.

A good example might be this. Imagine someone says, ‘Flip a coin. If it’s heads, I give you 10 times what you’ve wagered. If it’s tails, you lose it.’ So…how much do you bet?

Probably as much as you can risk without worrying that your life will come crashing down if you lose it. For some people, that’s $100. For others, it might be a million (or more).

Real life has many high-risk, high-reward scenarios (like building your own business, investing in a risky endeavor, etc.). And it’s only possible to participate if you can afford to lose. Only people who are rich and have a substantial safety net can. Everyone else misses out.”

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Pm Images / Getty Images

3.”You have to learn how to invest money yourself.”

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“People in the profession are almost always just looking at what they can get from you. Every person I know who is a financial advisor spends 90% of their time trying to get new clients and is pressured to do so. Learn how to smartly invest, and you can use an advisor much more effectively or not at all.”

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Celsopupo / Getty Images/iStockphoto

4.”Normal people can take advantage of one easy way to build wealth for their children: open a Roth IRA for them when they start earning money. You can then ******** the greater of your child’s annual income or the annual IRA contribution limit (currently $7,000 for 2024) each year. Invest the money in S&P 500 index funds or other diversified ETFs. Even a small amount each year will help them build their financial future.”

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–Anonymous, 40, Alternative Investments

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5.”The secret is that nobody knows what they’re doing. Put all the money you can into an S&P 500 index fund, and never look at it.”

–Anonymous, CFO, Multi-Billion Dollar Private Company

6.”As the child of a HNWI (high net worth individual), the ability for me to achieve what my parents did is basically impossible.”

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“They were able to save 75% of my dad’s salary for DECADES. He had a low cost of living and could climb the ladder in the medical field. That, plus some good investments, paid off in a massive way. After my father passed, I got an inside look at their finances: about $2,500 in student loans TOTAL for undergrad and med school, paid off a 15-year mortgage of about $80,000 in 10 years, lived in that house for the next 30 years debt free, and were able to put hundreds to thousands into the stock market each month, all on one income. The cost of living these days feels too high compared to salaries no matter where you are. The way most make money these days? They either inherit it or have other forms of privilege that aren’t acknowledged. (Raises hand guiltily).”

–Anonymous, 35, stay-at-home parent

John M Lund Photography Inc / Getty Images

7.”Invest in a diversified global market tracking fund. It’ll go up and down, but in the long term, it will be a great bet.”

“Start a pension as soon as you start earning. Compound interest works over time and the more time you have, the exponentially ******* the end result is.

Story continues

I lost ****** in pensions because of the spectacularly huge drop in annuity rates many years back, which seemed to make them terrible compared to what they used to provide. And while the heady days of big annuities are all but gone, pensions now are more like bank accounts that you can’t access until (in the ***) 55, but which the government pays into when you do and which has a partial tax relief when you come to withdraw.”

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8.”I would say the best money tip is to learn how to play the credit score system. Keep your credit card debt below 30% of the limit. Learn to make principal-only payments. Take advantage of interest-free payment plans rather than putting it all on a credit card. Interest rates and credit scores are the biggest obstacles I see people struggle to get over.”

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–Anonymous. 35, Financial Analyst

Hispanolistic / Getty Images

9.”I’m worth mid-eight figures now (I’m 41) and was -$250k net worth and homeless at 25. I started my first business at 30, which I sold for $50m last year.”

“My advice off the top of my head for starting a business:

–Dig all the way into something and find the sucky thing.

–Find out how much people will pay to have that thing ***** less. Alternatively, how much that sucky thing costs them now, and see if you can do it cheaper.

–Provide value to people by making that thing ***** less.

–Have people talk about how you made that thing ***** less for them on camera, and show it to other people who have to deal with sucky things.

–Get more customers and fix them.

–Hire where appropriate.

–

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10.”If you’re *********, Roth IRAs.”

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11.”If you want to exceed in something, hire a professional trainer to help you get there.”

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“Normal people send their kids to school, and if they need help, the parents will give them a slither of their time to help them. It’s only when they’re at risk of failing that they may get them tutoring.

Rich people give their kids tutoring from the get-go, so these kids are already ahead of the class, and school is just so easy they look towards wanting to accomplish more. Finding what you’re passionate about and investing in it early can really help shape your future. Look at every successful person, from business to sports, who had really great mentors who invested in them as youth. You read the biographies about businessmen, and usually, through some hobby, they end up meeting someone who will teach them a different way to look at business and provide an opportunity that will shape their future. These don’t always come at a cost.”

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Bymuratdeniz / Getty Images

12.”Always keep a steady income. Grow where you are planted. Continually put money away. Look for opportunities.”

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13.”I had to stop with the handouts. I was being ‘too nice’ and got taken advantage of (several times) by ungrateful people. My intent was to help, but I ended up feeling like an ****** when these people I ‘helped’ came back and started complaining because I would not continue to help them.”

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“I don’t use the word ‘flabbergasted’ very often, but yeah, I was flabbergasted at their sheer gall! I digress.”

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Ekaterina Chizhevskaya / Getty Images

14.”Acquiring wealth passively through compound interest requires knowing WHERE to park your money. Most people just have their cash in a savings account earning nothing, but they could be earning 5% in an HYSA, 25% in Gold or the SMP 500, or even more possibly (NVDA is up 150% over one year). Sure, the market involves risk, and you may even have down months/years, but over the long run, parking your money in the right places can lead to amazing gains. Especially considering a 30-year type of timeframe.”

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15.”You can avoid inheritance taxes (which are HEFTY, by the way) by gifting your children cash while you’re still alive.”

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“There is a maximum amount (it varies somewhat from state to state, but it’s currently $18k-ish) of cash you can give as a gift every year without paying taxes. If you give your children some or all of that amount each year when you are still alive, you can avoid a TON of tax dollars down the road. My parents do this with strict rules — we HAVE to use it for saving and investing, and it is absolutely not fun money. If we want fun money, that comes from our own paychecks. This is one of the major ways you can protect generational wealth: by giving your kids money to invest.”

–Anonymous, 31, Sales

Jacob Wackerhausen / Getty Images

16.”Have some money for safe investments and some money for risky business to learn. Even if it’s only $100 here and there, that stuff adds up. I bought Nvidia and AMD back in the day and now they’re worth so much more.”

–

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H/T:

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Note: Submissions have been edited and condensed for clarity. 

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#Rich #People #Sharing #Money #Tips #Rich #Time #Stop #Gatekeeping

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