Home Money Financial Literacy 3 Big Mistakes You Make by Copying the Rich
Financial Literacy - April 5, 2022

3 Big Mistakes You Make by Copying the Rich

You can make big financial mistakes by closely copying the lifestyles of the rich, including their routines, behaviours, and investments.

Many assume that if they keep copying what the rich do, they will become rich. The rich secret isn’t what you see them doing now. The secret is concealed in their story. 

It’s all about who they had to become and what they had to do to get what they have now. 

There are some parallels between wealth-creation and wealth-maintenance decisions. They are, however, vastly different.

When people decide to copy the wealthy, they copy what they do to keep their riches and money. This simply adds to the frustration.

You might have a favourite entrepreneur, someone you have a strong connection with or someone who got it right the first time. 

You’ve read their books, seen their interviews, and followed their recommendations. 

Maybe you just want to be like them, or at the very least achieve the same level of success and money. But here’s the thing, there are literally millions of ways to become rich. 

You may be making big mistakes by copying them because they may not be the best fit for you. How many ways can be used to complete a 20-kilometre marathon? It’s only one. 

To get in shape, increase your stamina, and go for a run. It’s more or less self-explanatory.

While the concept is the same, the methods for building wealth are limitless. Some people made money by beginning a business, while others made money by investing.

Here are 3 big mistakes you make by copying the rich.

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1. You copy their endgame

When you look at someone’s current fortune, you have no idea how they got there. Few people actually discuss the details, and most, to be honest, present a picture of the quote “struggle and hustle.”

Like Aliko Dangote and Tony Elumelu, most serial entrepreneurs have exposed and stated numerous reasons for their wealth. However, the majority of these reasons are only a portion of their overall strategy.

Can you be able to construct a cement refinery or a bank from the ground up? You will be unable to do that since you lack their unique knowledge, network, and resources.

If you don’t have a starting game, it won’t be worth your time to try to duplicate their final game. 

Learning how to plate food without knowing how to cook it is similar to copying the rich’s end game. That knowledge isn’t going to help you much.

Right now, wealthy people are concentrating on preserving and increasing their current fortune. When you start with $100 million, making $1 million is a piece of cake.

2. You don’t have their context 

Even the best astronaut in the world will not be able to fly unless they are given a rocket. Context is one of those things that you can’t see until you’re at the right place at the right time.

People enjoy whining about how they don’t have the same opportunities as other people. This is correct. 

Your situation is distinct from that of others. Bill Gates was extraordinarily fortunate to be one of the first persons to access a computer at such a young age and at a critical juncture in history. 

Jeff Bezos worked at an investment firm, where he was in charge of investigating the investment prospects of the internet.

These people had a unique situation that paved the way for their destiny. 

Assume we create five fictional people and disperse them over the globe. Do you think they’ll all start out the same way if they all start a business? Most likely not. 

You’re making a mistake by not playing inside your own framework. You must be aware of your surroundings. The internet has made it easy to change your context, but just a few people take advantage of it.

3. You want it too fast 

It’s a dream come true to retire at 35 and have enough time to enjoy life. It is possible, but you are making a mistake in how you view the process. 

People want to go from penniless to a billionaire without first becoming a “thousandier.” 

Things are not about how quickly you want it; it’s about how many steps you want to bypass. How can you figure out how to make millions if you can’t figure out how to make thousands each month? 

This is something that few people consider. You must be able to make some money in order to make a lot of money.

You will have to take unnecessary risks with high volatility if you want things to happen quickly. 

The wealthy can afford to take such a risk since they have ample resources. However, it could spell the end of the game for you and your situation.

You should be on the lookout for a way to get rich quickly. You should consider purchasing something that will increase in value over time. 

Rich individuals strive to produce money that will be worth something in the future, not to make a lot of money.

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