What are the seven things that rich people buy that poor and middle class don’t?
One of the things that differentiate the rich from the poor is not just because of money, it’s because they have assets.
Rich people, buy and own and acquire assets.
The middle class buys liabilities thinking they’re assets and poor people, they only have expenses.
Today I’m gonna share with you seven types of assets that rich people buy, acquire, and own.
And I’m not gonna define assets in traditional accounting terms.
When you talked to an accountant and they explained to you what types of asset classes there are, I’m gonna define it the way that rich people, the way that we see assets and are very, very different from how most people see it.
7 Asset classes that Rich People Buy and Poor Don’t
See most rich people, almost all of them, either make their money through their companies and business or they have an invested interest in multiple companies or multiple businesses.
So once you think about it versus poor people, all they have is a job.
They have a paycheck at the end of the month. You’ll never get rich through a paycheck.
You’ll only get rich through a business or multiple businesses.
Why? Because it’s the only way you can apply leverage.
You can leverage other people’s time, money, resources, and talents to build something, to make your vision a reality.
That your earning ability is not tied to how many hours that you work.
You can leverage one to 10 and one to 100, one to 500 to build a bigger business, to be able to impact more people, and deliver more value to a marketplace in exchange for money.
That’s what a business does. So, that’s the first asset class business.
#2 Arts and Antiques
Now, this is an asset class that I know very little about. I cannot tell the difference between a high-priced painting versus an average or low-cost painting. I have no clue. This is an area where I am like a complete idiot.
Now a lot of people buy automobiles just for transportation. But the rich sometimes buy for collection because they get pleasure driving them, owning them or fixing them, repairing them, or selling them. Done properly, this could be a very lucrative thing that you do, but most of the time, I notice that my friends do that because they have a passion for automobiles or classic automobiles, they do it just for fun.
But because they collect them, they buy rare automobiles and when they sell them they do make a nice profit from it. It does turn it into an asset class.
#4 Real Estate
This is the most popular asset class among the rich. Most rich people either make their money through real estate or park or hold their money in real estate.
Now when it comes to real estate there are so many different types of real estate. You have residential or you have commercial.
Residential, I’m talking about the single-family home. Commercial real estate, I’m talking about malls, hotels, right, offices, multi-family.
Two very different types of real estate. And within real estate, you have so many different types of strategies.
- You buy and hold
- You buy and flip
- You develop
- You do Airbnb
Depends on what it is that you wanna do and how much capital you have and where you wanna go.
Now, why do so many rich people have real estate or do they park their money in real estate?
It’s because the banks, the lending institutions, love real estate.
They will loan you money to buy real estate, right? They like the security of the real estate. They feel like that’s a hot asset, it’s an intangible asset that they like to lend money on.
And that’s why a lot of rich people, either make their money in real estate or we hold our money in real estate.
#5 Paper Assets
I’m talking about bonds, mutual funds, and stocks. Now when it comes to assets, sometimes we buy assets because it produces cash flow or dividends. In some cases we buy assets and we hope, they will increase in value over time. That’s called appreciation.
So when it comes to stocks, except it’s like dividend stocks, but stocks, mutual funds, and bonds, we are buying them at a certain price and hopefully it’ll go up later in the future. We are betting, we are buying on the appreciation. You see with paper assets you can turn that into money very, very easily.
Let’s say compare that to a piece of real estate. To convert a piece of real estate into money, well maybe you need to list the property, you need to sell, it takes time, or even if you wanna get a loan, get a mortgage, a second mortgage from the bank, it takes time. But with stocks, with mutual funds, you can sell that and turn that into money very, very easily.
#6 Intellectual properties
I’m talking about patents, trademarks, brands, and copyright. Any other intellectual properties that you might have.
See, this is an asset class that I love. The reason I like intellectual properties it’s because of the ability, you can scale, you can license your intellectual properties to somebody else, but also the maintenance fee, it’s very, very little compared to other asset classes.
I can also duplicate and replicate what I do to be able to serve way more people. So intellectual properties, Disney has a lot of intellectual properties, Coca-Cola as a brand, the brand itself, that’s intellectual property. The brand itself is worth more than the actual hard assets that Coca-Cola owns. The brand Coca-Cola is worth billions and billions of dollars.
#7 Precious metals
I’m talking about gold, silver, and platinum. Gold is very, very important. You notice when the currency of our dollars, it depends on what countries you’re coming from, rich people, they like to have their money in gold because throughout history you notice that gold, it’s the currency, it is the asset class that is recession-proof. So it’s a very, very important asset class that in your portfolio you have to think about.
Those are the seven things that rich people buy that the poor don’t.
I want to give you a bonus. And this is a new asset class.
What am I talking about?
That’s right, audience. You see attention is the new currency. To be able to have an audience, you see this through social media, influencers who have an audience, that they’re able to captivate other people’s attention, their audience’s attention, it is worth money. That’s how they’re able to generate income and profit and money from what they do. Attention is the new currency because without attention you would not be able to get customers. And without customers, you won’t have any sales. No sales, no money, no profit. It’s that simple.
A lotta people, neglect this asset class. And I believe this is an asset class that a lot of people, even rich people, ignore and overlook. This is an asset class that you can scale and expand very, very quickly to have, 1000 people, 5000 people, 10000people, 15000people paying attention to your message, your cause, what you are focusing on, and what you wanna promote. Even if you wanna promote a charity or your foundation, you need attention.
You need an audience. Money alone doesn’t just get your attention.
Attention is attention. Money alone is not enough. But to be able to get the attention you can convert that into money. You convert that into profit.
And it’s this asset class that could grow and grow and grow and there’s no limit. There’s no limit. Which asset class do you own and why? Please share it with me at email@example.com.