7 Things Rich People Buy That The Poor Don't

What are the seven things  that rich people buy that  poor and middle class don't?

7 Things Rich People Buy That The Poor Don't
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You see one of the things that differentiates the rich from the poor is not just because of money, it's because they have assets.

Rich people, they buy and they own and they acquire assets. Middle class, they buy liabilities thinking they're assets and poor people, they only have expenses.

Today I'm gonna share with you seven types of assets that rich people buy, acquire and own. And I'm not gonna define assets as in traditional accounting terms. When you talked in accounting and they were explained to you what types of asset classes there are, I'm gonna define it the way that rich people, the way that we see assets and are very, very different how most people see it.

1. Business

The first type of asset that rich people have that the poor don't is business. See most rich people, almost all of them, either they make their money through their companies and business or they have an invested interest in multiple companies or multiple businesses. So once you think about it versus poor people, all they have is a job.

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They have a paycheck at the end of the month. You'll never get rich through a paycheck. You'll only get rich through a business or multiple businesses.

Why? Because it's the only way you can apply leverage. You can leverage other people's time, money, resources and talents to build something, to make your vision a reality. That your earning ability is not tied to how many hours that you work.

You are able to leverage one to 10 and one to 100, one to 500 to build a bigger business, to be able to impact more people and deliver more value to a marketplace in exchange of money. That's what a business does. So, that's the first asset class: business.


2. Arts and Antiques

The second type of asset that rich people buy that the poor don't is arts and antiques. Now this is an asset class that I know very little about.

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I cannot tell the difference between a $100 painting versus $100,000 painting. I have no clue. This is an area that I am like a complete idiot.

My art collection would be my Hulk toys and Iron Man collection.
Although my wife would argue that is not an asset class. Well, to me it is an asset class.

3. Automobiles

The third asset type that the rich buy that the poor don't, it's automobiles. Now a lot of people they buy automobiles just for transportation. But the rich sometimes they buy for collection because they get pleasure driving them, owning them or fixing them, repairing them, selling them.

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Done properly, this could be a very lucrative thing that you do, but most the time, my friends I notice
that they just, because they have a passion for automobiles or classic automobiles, they do it just for
fun.

But because they collect them, they buy rare automobiles and when they sell them they do make a nice profit from it. It does turn it into an asset class.
But for me, I just do it for fun.


4. Real Estate

This is the most popular asset class among the rich. Most rich people they either make their money through real estate or they park or hold their money in real estate. Now when it comes to real estate there are so many different types of real estate.

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You have residential or you have commercial.

Residential, I'm talking about condo or single family home.
Commercial real estate, I'm talking about malls, hotels, right, offices, multi-family.

Two very different types of real estate.
And within real estate you have so many different types of strategies.

Do you buy and hold?
Do you buy and flip?
Do you develop, right?
Do you do Airbnb?

Depends on what it is that you wanna do and how much capital you have and where you wanna go. Now why do so many rich people have real estate or they park their money in real estate?
It's because the banks, the lending institutions, they love real estate.

They will loan you money to buy real estate, right? They like the security of real estate. They feel like that's a hot asset, it's an intangible asset that they like to lend money on.

And that's why a lot of rich people, we either make their money in real estate or we hold our money in real estate.

5. Paper Assets 

The fifth asset class that rich people buy that the poor don't is paper assets. I'm talking about bonds, mutual funds and stocks.

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Now when it comes to assets, sometimes we buy assets because it produces cash flow or dividends.

In some cases we buy assets and we hopefully, it will increase in value over time. That's called appreciation. So when it comes to stocks, except it's like dividend stocks, but stocks, mutual funds and bonds, we are buying it at a certain price and hopefully it'll go up later in the future. We are betting, we are buying on the appreciation.

You see with paper assets you can turn that into money very, very easily. Let's say compare that to a piece of real estate. In order convert a piece of real estate into money, well maybe you need to list the property, you need to sell, it takes time or even if you wanna get a loan, get a mortgage, a second mortgage from the bank, it takes time.

But with stocks, with mutual funds, you can sell that and turn that into money very, very easily.

6. Intellectual Properties

The sixth asset class that rich people buy that the poor don't is intellectual properties. I'm talking about patents, trademarks, brands, copyright.

Intellectual property
What are examples of intellectual property?
Any other intellectual properties that you might have. See, this is an asset class that I love. I own a lot of intellectual properties.

The reason I like intellectual properties it's because the ability, you can scale, you can license your intellectual properties to somebody else, but also the maintenance fee, it's very, very little compared to other asset classes. I can also duplicate and replicate what I do to be able to serve way more people.

So intellectual properties, Disney has a lot of intellectual properties, Coca-Cola as a brand, the brand itself, that's an intellectual property.

The brand itself is actually worth more than the actual hard assets that Coca-Cola owns. The brand Coca-Cola is worth billions and billions of dollars.

7. Precious Metals

The last thing that rich people buy that the poor don't is precious metals. I'm talking about gold, silver, platinum.

What are the five precious metals?
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Now, gold is very, very important. You notice when the currency of our dollars, it depends on what countries you're coming from, rich people, they like to have their money in gold because throughout history you notice that gold, it's the currency, it is the asset classthat is recession proof.

So it's a very, very important asset class that in your portfolio you have to think about. So precious metals.

Those are the seven things that rich people buy that the poor don't. I want to give you a bonus. And this is a new asset class. What am I talking about?

8. Audience

That's right, audience. You see attention is the new currency. To be able to have an audience, you see this through social media, influencers who have audience, that they're able to captivate other people's attention, their audience's attention, it is worth money. That's how they're able to generate income and profit and money from what they do.

types of audience

Attention is the new currency because without attention you would not be able to get customers. And without customers, you won't have any sales. No sales, no money, no profit.

It's that simple. A lotta people, they neglect this asset class. And I believe this is an asset class that a lot of people, even rich people, ignore and overlook.
This is an asset class that you can scale and expand very, very quickly to have 10,000 people, 20,000 people, 50,000 people, 10,000 people paying attention to your message, your cause, what you are focusing on, what you wanna promote.

Even if you wanna promote charity, your foundation, you need attention. You need audience. Money alone doesn't just get your attention. Attention is attention.
Money alone is not enough. But to be able to get attention you can convert that into money. You convert that into profit. And it's this asset class that could grow and grow and grow and there's no limit. There's absolutely no limit.

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