These are some wealth observations – learnt from observing, copying, reading, experiencing,….the following learnings are worth reading about:

1. High Income does not always translate to higher wealth: Unless you create income creating assets which grow at a rate greater than inflation, you cannot get wealthy. Simple Income has to be spent and then used for investing in wealth creating assets.

2. Many Rich people run their business very well. They have a very good hold of their businesses, as well as their personal life – and this includes budgeting and knowing where they are going.

3. They know what they are spending on what products, what is the rate and they compare it with the actuals!

4. They largely know where their money is being spent – or their wives know where the money is going

5. On an average they would have surely saved more than 20-30% of their BUSINESS EARNED INCOME and close to 100% of their dividend incomes in their ‘accumulation stage’. Most of them are still investing in their ‘REAPING’ stage. This is because they have created an income which is far higher than their expenses.

6. They do invest quite a lot of their time in learning about money – and can spot a ‘thief’ fund manager from a far distance.

7. Most of them use assets long enough – rather too long we might say! Most of the people I know are in Mumbai – so seeing one person using a house for 20 years, cars for 7-10 years, etc. before they throw it away.

8. Nobody in this age group has had a luxurious life style – but can try!

9. Nobody in this group (that I have met) has had a divorce. I guess they saved some money!!

10. Financially independent people are happier than people who are not financially independent!