Myth 1. The rich lead extravagant lives
The reality is that the rich lead a comfortable rather than extravagant life. Most of the rich who created their wealth through their own efforts are more careful about their spending than the average person.
Their expenses are never a significant percentage of their earnings and an increase in earnings doesn’t mean an increase in spending. Need an example? Warren Buffett lives in the same house he bought more than 3 decades ago.
Myth 2. They inherited their money
Most of the new rich in India actually didn’t start out rich. They made their money through entrepreneurial ventures or by being employed and rising to very high salary levels. The common factor here is that they all PLANNED to get rich and took actions to create their wealth.
Myth 3. The Rich don’t believe in saving
Even the greatest of entrepreneurs started out with their own meagre savings. The rich know more than anybody else the power of saving as it was their savings employed effectively whether in their own business or in investments, that made them rich.
They know that employing money effectively in prudent investments such that it grows more and faster than everybody else’s is key to becoming and staying rich.
Myth 4. The rich don’t have to work hard like the rest
The rich ironically have to work harder than most of us. They have entrepreneurial thought, even if they are not entrepreneurs themselves. The rich know the value of time as well as that of learning. They ensure they plan their day around getting things done and learning new things.
Their day doesn’t stop at 6 PM or just because it is a weekend. They ensure their money and savings are working for them overtime as money that is just sitting around is going to disappear over time.
Myth 5. The rich get rich suddenly
A famous quote says that overnight success takes about a decade worth of efforts to achieve. Even for the young tech billionaire, the work that finally led to a revolutionary product started when they were in school. Be it Bill Gates or Richard Branson, their work started when they were young and no one thought they would become what they did.