How Billionaires Think (About Money)

If you’ve ever sat back and wondered why the rich seem to get richer, and the poor seem to get poorer (or, at best, stay “stuck”), here’s a bit of truth for you. There’s a marked difference between how the average person thinks about money and how BILLIONAIRES think about it.

They live on a different plane of existence, and operate on a completely different set of beliefs about how money works.

Many don’t know this, but there is an energy to money. It’s attracted to certain types of people (based on their attitudes, behaviors, and decisions), and repulsed by others. It moves and flows and changes states, much like water (it’s no coincidence that assets that can quickly be converted to cash are called “liquid assets”).

Today, let’s take a look inside the minds of billionaires. BUT, let’s not just look at how they think about money, but also at how you can arrange your finances right now for long term wealth building.

(NOTE: The Wealthy Consultant is not a financial advisory firm. Nothing written in this article constitutes official financial advice. Before making any serious decisions concerning what you do with your money, please consult with a financial strategist or advisor.)

There are only 3 things you can do with money:

1. Spend it.
2. Save it.
3. Multiply it.

Let’s break down each of those in a little more detail for a second.

Everyone knows how to do the first one – spend it. Most business owners have no issue with it whatsoever. In fact, one of the most common problems we see with young entrepreneurs we work with is that they start making a little money, and they immediately increase their spending in accordance with the increase in income. Classic error.

The second one is perhaps the most common approach of the modern working man – save it. We’ve all seen the popular “money gurus” (like Dave Ramsey) who are trying to convince anyone who will listen that they can save their way to financial freedom, and eliminate all of their debt along the way. No offense to those folks, but the math simply DOES NOT add up… not if the goal is being wealthy.

The wealthiest people in the world don’t save their way to billionaire status. It would be insane to think that. Yet, many entrepreneurs think that hoarding and stockpiling money in some bank account is the key to the wealth they desire.

The reality is, that key is actually found in option 3 – MULTIPLY it.

If you expect to be wealthy, you simply cannot just hang on to liquid cash. Keeping all of your money in a liquid state is essentially guaranteeing that you don’t hang onto it. Don’t take our word for it, just crack open Google and search “value of the U.S. Dollar.”

Go on, we’ll wait.

Allow us to be candid for a minute. You may not like what we’re about to say – but, you’re also reading an article. You can click out of it any time you wish.

Still reading? Okay, here we go.

If your plan is to save your way to being rich, you’re kidding yourself. A life devoid of risk is often a life devoid of the extraordinary.

Very few things are as dangerous to the modern entrepreneur as the ideas of “comfort” and “playing it safe.”

Here’s a challenge for you. Instead of investing time in playing it safe and eliminating risk from your life and business, invest time in:

1. Learning the rules of the game
2. Figuring out how the system works
3. Taking WISE, calculated risks with your money

What does “calculated” risk mean?

Here’s a simple, 3-question framework for weighing risk.

• What are the upsides of this decision?
• What are the downsides of this decision?
• Can I live with the downsides?

It really is THAT simple.

The caveat here is that you have to have done your homework well enough to actually know (with some certainty) what all the upsides and downsides are.

If you’re serious about becoming rich, that homework won’t bother you in the least. In fact, you’ll learn to fall in love with it.