When you think of things that rich people buy, you probably think of fancy cars and private jets and while the rich do purchase these luxurious items from time to time, for the most part they are spending their money on things that will further grow their wealth. In fact, the best way to see your net worth grow exponentially is by buying assets that earn you more money over time and in this article, I will share with you 7 assets rich people own that poor people don’t!
Before we get into the assets that rich people own that poor people don’t, I think it’s worthwhile to refresh our memory of what exactly an asset is.
In economic terms, an asset is:
A resource with economic value that will provide a future benefit.
Effectively, assets are things you buy, that produce income. For example, an asset could be a piece of real estate or an apartment building. It could also be a company, stocks — any kind of investment that would put money in your pocket.
Rich people buy such things regularly. That’s why they stay rich. The poor and the middle class, on the other hand, buy liabilities.
It was many years ago that I first read the classic book “Rich Dad, Poor Dad” by Robert Kiyosaki where he masterfully explains the importance of buying assets and how so many people in the middle and lower class spend the majority of their money on liabilities.
For instance, they buy cars, boats and even the items they think are assets like their home are in fact a liability. What they fail to realize is that assets are supposed to make you money while you sleep. Liabilities on the other hand simply drain you of your money.
This is where the rich differ from the poor. Rich people buy assets first. Then, with the money that comes from them, they finance their luxuries. So when you see rich people having all the fancy luxuries, they buy that from the money that the asset produced for them.
In fact, recently Kiyosaki made this exact point when he tweeted:
Live it up! Buy everything you want! One caveat: Buy the assets to pay for them first.
You see, rich people think very differently when it comes to money. Instead of…