If you want to play any game, you first need to know the rules. The game of wealth is no different. If you’re going to play the game, you need to know the rules well.
I understand that the title of this article may make you angry. You may read it and think, “why does it have to be Rich Man?” I know times are all about being inclusive. If you look at the gender statistic of billionaires, you will see that 2489 are male, whereas only 336 are female. That means about 15% of billionaires are a woman.
These rules come from my personal experience being mentored, helped, and working for wealthy people. After doing it long enough, you begin to realize that many of the principles of wealth are the same no matter your gender, race, or class. Principles rarely change.
The Origin of The Rich Man Rules
When I was 18, I left Canada for Ames, IA, to run track at Iowa State. When I got there, it almost instantly expanded my network. I started to meet many wealthy donors to the athletic program.
One, in particular, I became great friends with. My wife and I ended up living with him down in Arizona. It was this experience that made me start taking notes on the Rich Man Rules.
I wanted to see if I could pick up commonalities between many of the rich people I met. I needed to know if they were all unique or had some core similarities that stood out to me.
I went on to work for a real estate investor who owns 150 properties in Austin, Texas. He was and still is a fantastic mentor. He introduced me to other investors, and I kept learning more and more.
The truth is that there were rules that could be followed. If you wanted to increase your wealth or even begin generational wealth for your own family, it could be done.
Read – The Road to Success Always Goes Through This
The 8 Rich Man Rules
Here are the 8 Rules of Success I discovered to be commonalities to each Rich Man that I spent a significant amount of time with.
1. You Need to Be Able to Sell Like a Boss
One of the biggest things that stood out to me whenever I was around wealthy people is that they all are salesmen. At all times they are trying to sell a variety of things
- Sell the vision
- Sell that your company is a great place to work
- Sell people on yourself
- Sell your products
- Sell your ideas
These people never stop selling! It’s just who they are. They are passionate about the things they are doing, and they want to get you on board.
They can make money because they can pick up the phone, write copy, or having meetings that get people to open up their wallets and support them.
It’s effortless to overlook how vital the rich man rules are. You may convince yourself that you will hire a salesperson to do this all for you. It does not work that way, though. You need to be able to sell your vision even to get the salesperson.
2. Networking is a Must
The rich man plays a lot of golf and spends time doing stuff that does not seem like work at all. They are working though, they have just mastered working and building relationships in relaxing environments.
The time spent networking with other wealthy individuals always pays off. Networking gives them the right person to call on for every situation that they may be facing. They don’t need to know everything. Instead, they rely on being able to call on the right person.
Rich people don’t rely on their intelligence for everything. They don’t approach life with a DIY mindset. Instead, they focus on what they are good at and hire people to do the rest.
3. Work Hard Play Hard
Rich people work harder than the average person, but they also know how to enjoy life. Work-life balance is present in their lives. They will work their butts off for a few weeks and then go on a vacation with their family.
Most people think of the rich man as this overzealous workaholic that can’t even take one step back from their work to spend some time with their family. The book the Millionaire Mind, which extensively covers millionaire statistics, shows that wealthy people value play.
They love to spend time with their kids and grandkids and watch family members play sports. There is no sign of them being all work and no play. It shows that the time they spend working is sufficient and they always work on their most important work first.
4. Invest In Yourself
The Rich man looks to invest in himself in two significant ways. The first is through education, and the second is through entrepreneurship.
You have to spend money to make money, and one way wealthy people do this is by spending money to improve themselves. This includes spending money on the following:
- Books
- Courses
- Classes
- Certificates
- Mentors
- Coaches
The Rich Man is never settled or ok with how good he was yesterday. He keeps learning to make sure that he always keeps up with the latest methods. He sees it is brain-like software that continually needs to be updated through learning.
The second investment comes through entrepreneurship. The Rich Man bets on himself by not making someone else rich his whole life. He sees a job as an opportunity to learn and build capital for his venture.
The Rich Man knows that entrepreneurship is the way because it provides him with control and uncapped earning potential.
5. Focus On Your Bread and Butter
The Rich Man knows what he is good at, and he focuses on that area. He also picks an industry that he understands well, and he stays within that industry as well.
Think about how Warren Buffett is not a huge internet company investor. He does not understand it well, so he stays away from it. His bread and butter are staples that he thinks will be around for 100 years.
What you don’t see is the wealthy jumping around from idea to idea and industry to industry. You need to pick it and stick it out if you want to build up wealth. When you do this, you build a lot of cumulative knowledge that others can only duplicate with time.
6. Watch The Expenses
When I spend time with the wealthy elites, one of the biggest surprises is that they watch their expenses closer than many would think. Many of them became wealthy by watching their costs and not spending money like an idiot. Once they have wealthy, it’s hard to break that habit.
It’s not that wealthy never splurge; they keep it all in perspective. They don’t go and buy a new sports car and a mega-mansion at the first chance they get. They have discipline, and they always make sure that they can genuinely afford anything they are spending money on.
Rich people also see money as an investment, so they understand the opportunity cost of their expenses. A new car could also be invested in a new business venture or into some more real estate. They also know the value of leveraging technology, such as asset management software, to help them better predict the return of their risky assets. If you click here, you can learn more about the newest asset management software available. It’s a must-have for anyone looking to get wealthy.
7. There is No Need to Look Rich
It’s almost like once you have real wealth; you want to do everything you can not seem like you have wealth. Sort of like how Amazon, Google, Facebook, and Apple do everything to seem like startups with no control. They want to prove they are way smaller than they are.
Rich people don’t use the money to flaunt wealth and standout. They would instead you think they are poor. They approach each day as if they have not built up any money at all, and it keeps them hungry.
The image associated with many wealthy men is a power suit, a fancy car, a beautiful woman, and a luxurious house. The reality is that some don’t wear suits at all, they drive average cars, and they live in a lovely house, but it’s often not as lavish as you would expect.
8. Master The Fundamentals
The Rich Man looks to master the basics that never change. When it comes to money, he makes sure he has all of the needed insurances. He focuses on his future with smart investments. He learns how to save and give away money systematically.
The idea of mastering the fundamentals pours into everything that they do. Every day, if they play basketball, it is about doing bounce passes and layups vs. trying to do a windmill dunk. They get joy from working to master their craft.
Read – Jeff Bezos Net Worth and Key Habits
They can make money because they can pick up the phone, write copy, or having meetings that get people to open up their wallets and support them.
The Rich Man Myths
It would be best to rid yourself of these myths of wealth that are always flowing throughout society. If you believe these things to be accurate, they could ruin your wealth.
1. They Step On Others
To say that no man with money and power has ever abused, it would be a lie. But to say that every rich man has gotten that way from using and stepping on others would be a gross lie.
Rich people are humans, and they make mistakes, but the difference is that they are watched with much more scrutiny. The rich man can provide jobs for thousands of people for years, and the second they have to cut any, people turn and say that they are stepping on others.
The truth is that it’s lonely at the top, and many rich people are genuinely excited by the idea of helping others succeed. They love the idea of helping others to thrive and grow.
2. Everything They Buy is Lavish
I want to hammer this one home. I’m not saying that there are no rich people luxury things, but its always in the perspective of their total wealth. For example, someone with a $15 million home may have bought it with their dividends’ savings. That is wealth when you can buy luxury items with the extras from your assets.
If you only have $15 million to your name and leverage it all to buy a house, you’re just a broke person with expensive things. All your spending needs to be within reason.
3. Other Can Never Enter The All Boys Club
There is an idea that wealth is only for the rich white man. Historically that has been true, but anyone can play the game if they are willing to understand the rules. People care more about mindset than they do about the exterior things we tend to focus on.
The rules above have nothing to do with gender, color, or any other group that has been oppressed. That does not mean that life will always be an even playing field, but you can do your part to even the odds.
Read – Bill Gates Net Worth and Key Habits
The truth is that it’s lonely at the top, and many rich people are genuinely excited by the idea of helping others succeed. They love the idea of helping others to thrive and grow.
Find The Results and Duplicate the Process
Success is the same; no matter who you are or what you want to achieve. I became an Olympic track and field athlete by following these steps.
- Decide what you want
- Find others who have done it
- Figure out what they did
- Do it yourself
It’s that simple! If you want to be successful, you have to decide on your direction and duplicate the efforts of those who came before you. It takes more than just saying you want to do something. You need to have the right ingredients.
Think about writing down that you want to make cookies. Will that give you cookies? Not a chance. When you focus on the process, you can buy the same ingredients and copy the process for the person who makes your favorite cookies.
Success is similar. You need to figure out the right mix of actions and habits of the people you look up to. It does not matter what area this is. Figure out what they did and then have the courage to do it.
Too many people stop at step 4. They understand what they need to do from articles like this, but they never do it. They are just hearer of the excellent word, but they are not doers. If you want to win in life, you must be the one to do.
Read – Read This When Your Dream Overwhelms You
Think about writing down that you want to make cookies. Will that give you cookies? Not a chance. When you focus on the process, you can buy the same ingredients and copy the process for the person who makes your favorite cookies.
Keep Learning More…
If you enjoyed reading about the Rich Man rules, you would love the following articles to help you execute on your plans to succeed. Developing goals, finding your purpose, and developing the right mindset will all help you to win.
– 8 Steps to Bring Purpose to Your Life When You Don’t Know What to Do – 20 Long-Term Goals and Why You Need Them– 8 Steps to Bring Purpose to Your Life When You Don’t Know What to Do– 20 Long-Term Goals and Why You Need Them– 30 Steps to Building a Millionaire Mindset – Overcome Your Excuses to Reach Your Goals– 8 Simple Ways to Be More Likeable
