Who are the Truly Rich?

Who are the Truly Rich?

In differentiating the rich and poor, we always look for physical appearance. Most of the times, we will say a person is rich when he/she have big house, new car, expensive jewelries, latest gadgets and other physical items that may add to his/her physical worth status in life. And for those who don’t have these things, we often call poor.

However, looks can be deceiving. In getting one’s total worth, it is not enough to see what is on the outside. It is impossible for us to see the exact total asset a person have. We can only guess base on the outside. According to the studies in the US their result says differently.

Truly Rich are those people who have harnessed the secret of money working for them. They do not need to work if they want, their money work harder for them and they have millions of it. They have everything covered, they can live comfortably for the rest of their lives without any financial crisis. They are the people that can sustain the same living standard no matter what happens. They have their money invested in business, invested in various  investement vehicles and insurance covered their entire life.

From the book “Millionaires Next Door”, they made a survey to America’s millionaires to know more about them. The result surprises everyone and totally change the way they think of the Truly Rich.

suits

Truly Rich millionaire never spend more than $399 in a suit.

  • 50% of the millionaire surveyed buy $399 or less.
  • 10% of the millionaire surveyed buy $1000 worth of suit and above
  • 1% of the millionaire surveyed buy $2800 worth of suit and above
  • 25% of the millionaire surveyed paid $280 or less for a suit
  • 10% of the millionaire surveyed paid $195 for the most expensive suit that they have

Base on this fact, most Truly Rich spend less on their clothing. And who are those who wear and buy expensive suit? On their studies, they found that for every Truly Rich who owns $1K worth of suit, 6 non Truly Rich people owns it. They are the businessmen, managers, attorneys, sales rep and the rest.

expensive-shoes

Truly Rich millionaires never spend $140 or more for their shoes.

  • 25% of the millionaire surveyed never spend more than $100 for their shoes
  • 10% of the millionaire surveyed spend more than $300 for their shoes
  • 1% of the millionaire surveyed spend $600 or more for their shoes

For every Truly Rich individual who buy shoes more than $399, there are 8 non truly rich people who will buy it.

rolex-watches

Truly Rich millionaires never spend more than $200 for their watch.

  • 25% of the millionaire surveyed spend $100 or less for it
  • 25% of the millionaire surveyed spend $1250 and above
  • 10% of the millionaire surveyed spend $3000 and above
  • 3% of the millionaire surveyed spend $3800 and above
  • 1% of the millionaire surveyed spend $15000 and above

In summary, it shows that the Truly Rich practice frugality very much. They do not wear expensive items to make them look rich. They do not own expensive cars, in fact most of them buy a second hand cars. They do not have a big mansion in a posh subdivision, they have a house where they can live just enough for them.

The book “Millionaires Next Door” changed a lot of perception when it comes to the Truly Rich behaviours. Our media sensationalise the rich base on their physical appearance. And the people are patronizing it. This is where they make money.

Since only few people are Truly Rich, there are more people who WANTS to be rich as well. So they end up getting those physical things that they think will make them look rich. We can only see them on their expensive liabilities, but we can never know how much their real assets is worth.

Are you one of the Truly Rich?

P.S. A year ago, I do not know anything about investment. Then I joined Truly Rich Club by Bo Sanchez. It was the best decision I ever made in my life. Brother Bo is a spiritual preacher and at the same time, financial literacy advocate whose purpose is to help people become rich in order to serve the LORD with the money that they have. He guided me along the way, explaining how I can manage my money and make it work hard for me. Now I’m investing in stocks and mutual funds and have a clear path for my future. Soon I’ll open UITF account as well. All are made possible by his guidance and teachings on every steps to become an investor. Being OFW isn’t forever, this is my EXIT PLAN. It’s amazing how his teachings change my life. I’m inviting you to join the club too, JOIN TRULY RICH CLUB. If you have any question, feel free to leave your comment below. CLICK HERE TO JOIN

About Richard Macalintal

Hi my name is Richard. I am a Registered Financial Services Consultant in Singapore. If you have any queries or you need help on your insurance policies and investment linked products, feel free to message me :-) We can have a cup of coffee while I do financial review and give advice with regards to your finances :-) Contact me thru email rlmacalintal(at)yahoo.com or SMS me +65 82235186. Disclosure: I am a Financial Consultant of AIA. The statements or opinions expressed on this site are my own and do not necessarily represent those of AIA.

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