Topic: Wealthy people want profit without much of liabilities so you should follow them (Read 265 times)

We just had the real estate ATH 2021-2022 Then it falled....we got to the DEAD CAT bounce point.
Im expecting small bounce 2024 and then 30%-50% price to fall year 2025-2026 UK EU USA Canada and AU

Follow how they make money and how they make a profit. Also how they manage their finances well, so that their wealth continues to grow. However, it is very unfortunate, most of them only follow the lifestyle, while others do not follow. Especially the current generation prioritizes appearance and prioritizes the current lifestyle, rather than exploring potential and honing skills.

And speaking of investing in Bitcoin, indeed... this should be a solution for people who don't have enough money to start investing. Because talking about investing in bitcoin or crypto... someone can start investing in any amount, according to the ability they have... However, we as ordinary humans... we often rush into making decisions... because we want to immediately make a profit from an investment... we act carelessly by buying just any coin without first looking at market developments and looking into the future, whether the price of the coin will rise or not.

I think that's the difference between people who got richer later in life and people who were born rich. I believe that when you are born rich, you can't really imagine a life being poor, and that is why you take more risks, which could lead you to be even richer of course, Elon Musk was a super wealthy person even before any of this, his father owned diamond mines in Africa, dude was never a poor person, he had money anytime he really wanted to, but he just didn't want to.

However, it could also lead you to do something stupid and lose all your money, because you are willing to take that risk, you end up being a lot worse. This means that you need to end up with a situation where you could cause a lot of trouble for a lot of people. Poor to rich is different, you know the risks, you know the life, so you be a lot more careful.

not all rich people did that, there are some that just don't think about such thing because they know that their income let them live luxuriously even owning as much as the real estate and they won't even get burdened by the taxes.
its only those that truly care about their wealth because they afraid they might went poor again someday that keeps thinking excessively about reducing liability.
the thing is that, by putting all your assets into something that is not liability, you sometime expose your wealth to even greater risk.
I mean you could be putting all your money into stocks and who knows if within few years the company went bankrupt you lose your money, definitely paying taxes even though its being considered liability for many people are still better than losing money as a whole.
when it comes to this the best solution would be, increase your income so you don't need to think about something like this.

Owning real estate properties is only good if you are swimming in cash and are looking for properties to buy that can hold its value for a long time. If you aren't really that much of a deep pocket, buying real estate is not for you, and so REIT was introduced. This removes all the liabilities and risk from you and passes it over to a company that manages these properties and are looking for investors to develop these properties. In turn, whatever profit they generated, they share with you depending on your share of the pot. Lots of middle-class people can easily be a part of this but chooses not to as they choose spending over investing, unfortunately.

Even with the overall positive gain from REITs, it still can't outperform bitcoin or crypto for that matter. The only difference is, you carry 100% of the risk, and you don't have other people guiding you with your investments. It's just you and you alone. This isn't so bad after all, considering that even if you encountered crashes while holding your bitcoin, there is a high possibility that you will regain the value of your coins eventually.

It's good to follow how the rich generates money. Then again, these people are already loaded and have a lot of freedom to choose whichever income-generating asset they want to hold, unlike us people who are looking to get something out of our meager salaries or savings.

What is the cost or the maintenance cost for keeping BTC? Buying a hardware wallet and then that is the cost that you are saying and keeping it up to date doesn't cost you that much but definitely your time. If you think that owning nothing is the best thing that you can do then you are just there to live freely without taking that much challenges and risks and I was also thinking like that before. But you know what? You won't be moving on a better place if you playsafe like that.

Liability and asset talk is as old as ancient times, its true and a lot of people "learned" the difference. Just because most of the world doesn't do that, doesn't mean that they are not aware of it neither. First of all, there is something that prevents men from investing into assets and keep on investing into liabilities, that is called a wife All jokes aside, we are aware, but we still spend money on useless stuff, its just how life is. I believe that knowing the difference and using the difference are two very different things. I have some money in some assets, but not a lot, because I am not rich, and I have a lot of debt, based on liabilities, and that's not my choice, that's just life.

I have investment in REITs. Not one, but two! I am not classified as a wealthy person but my stock exchange allows me to participate in REITs. These are really great investments to be honest but they couldn't outperform Bitcoin really. Especially in COVID time, the return from REITs were quite low even compared to the traditional bank deposits. But it is now coming back to its former glory.

But that's not just for rich people. In my country, REIT investments are open to any eligible individuals and the units are tradable in stock exchange. So it's very easy to sell off the units if you need. personally I would recommend REIT as an investment if someone is looking for a above-the-market return.

It is important to know that we do have our own path in life, in business, personal, career, finance, love life and so in. So we don't need to follow anyone in life, but one thing I learned in finance is that successes can be duplicated, I'm not saying we need to replicate every billionaire's people steps that they took, but we should take a look at how they did the steps, simply the rules they follow and some words from them, in short their mindset while doing the work they have founded. However, it is not also wrong to follow people you admire (not literally) if they inspire you to do great things then so be it.

The mindset of rich people who are successful from zero is truly extraordinary, they are able to take advantage of every opportunity that exists and also see the risks of every decision they take down to the very details.  Liability assets such as luxury cars, luxury motorbikes, expensive watches will not make them easily tempted, even if they waste their money on going to nightclubs or other glamorous lives, it feels like it's hard for them to do.  having investment assets that provide long-term profits, active profits and passive profits are also important, now I have started to try to get them as quickly as possible, who knows the future, only great people prepare themselves for the worst in the future.

No matter what the rich and the poor say, everyone dreams of investing and will make a profit. It is wrong to think that only wealthy investors can profit from investments, those who have a sound understanding of investments and who can take risks and who can hold their investments for a long time can profit from investments. A new investor should follow those investors who invest in the right way and who have sufficient investment skills as well as those who can take risks. A rich investor but he has no idea about investment and he doesn't know how to invest properly I think following him will result in loss of money instead of profit from investment.

Without any further jibed jaber on this discussion. Rich people just have greater money income over their liabilities that’s why they are rich. It’s not that they are trying to lower down their liabilities just to become rich but rather they are rich because they earn huge money that overcome their liabilities.

It’s very simple. If you want to become rich, Find a better job or start your own business that will make you rich because limiting your liabilities will not make you rich but just make you less poor in the long run.

Yeah, living in lavishness is part of the wealthy people's lifestyle no doubt about that but few of them are I think were living a low key lifestyle and instead of having hundreds of collectible luxury cars they share their wealth to charities out there.

Though we can be fooled by what we see and read on the internet but still let me just share this link for you to check out: https://www.thegentlemansjournal.com/article/10-billionaires-live-surprisingly-normal-lives/

History not repeat always sometimes it could be trap If you think that ways. Be catious!

No one enjoys luxury more than a rich person, in my opinion. Rich individuals spend their money on many forms of luxury, such as homes, yachts, and private jets. Because they appreciate luxury, they have a specific budget set out for their opulent lifestyle. It's not their fault; they are wealthy. Additionally, they invest at the same time that they spend. Can you mention any super rich or even rich person that does not spend on luxury. Because as for me if I am investing the same time I am adding luxury to one way or the other, been comfortable is not a crime at all anywhere so let us enjoy while we still can even has we are investing. But don't spend everything on luxury so you don't go broke tomorrow.

Not sure if owning nothing is really the way to become rich. I understand your argument, but if we look back at history it's actually the opposite, most people got rich by owning a company and see the value of that company rise in value. Business owners have more risk than the average person, all their money and wealth is one company, whereas investors usually spread their money across a wider range of assets. Only once the business owners become rich, they might sell a part of their company and diversify in properties, yachts, luxury cars or art. Taxes are usually a portion based on profits, so only if we make a lot of money we have to pay a lot of taxes. Also the more money you have the better your tax specialist is going to be and you can use a wider range of options to save taxes, like creating a family trust.

REIT is definitely getting popular before COVID happened, but for now I wouldn't put my money into REIT. REIT performance will always depend and under the Real Estate market, if the real estate is good then REIT will be fine, and when Real Estate market is bad REIT is worse. If you are a full-time worker and need a true stable passive income, Government bonds would be better option for current situation since the real estate market is not that good either.

Those are the actors of social media, rented lambos and such.

You know that there are people who truly are good with REITs and it's like their best investment and niche at all. But not everyone has the liking to invest into REITs because that simply is not their forte.

They want to get a real or actual real estate than investing to the REITs. Although it's another good investment and will surely give you some dividends, it will still depend on the company where you invest.

If they perform well this year then you've got nice profits but if not, that's not giving you the happiness that you should have with it. Because like any other investments, some perform good and there are times that they don't.

You are confusing multiple sectors into one and blaming the rich, its not the rich the system has to be changed like Trump says if you want to make the wealthy people to pay more taxes but it ain't gonna happen so there is no point in expecting the change in the policy level.

Wealthy people not become rich from inheritance, most of the millionaires are first-generation millionaires so they found ways to make more money instead of sticking with the 9-5 jobs.

Well for me there are two types of wealthy people one of them loves a lavish and luxurious lifestyle with super car collections, yacht, private jets, expensive watches, bags, shoes, and anything that is a liability and the other type of rich people are those that focuses more on investing assets like real estate, precious metals, cryptocurrencies and any other assets decentralized or centralized. It is actually up to us whom we follow but for me I prefer the one that acquires more and more assets.

But it won't be a physical home that you can live in or rent out. Housing will always be in demand, but the paper for a house is already in doubt. This is only suitable for assembling an origami house.

Why buy a surrogate if you can own bitcoin itself? Repeating the same steps that the wealthy people have doesn't mean that you will become wealth too. Use your head.

I also have "nothing or any liabilities", but this is hardly due to the desire to avoid trouble.

"Wealthy people want profit without much of liabilities so you should follow them" - I believe that the desire to make a profit without any obligations is a whim not only of the wealthy people, but of all people in general. This is most evident among lazy and not smart people. The trouble is that profit always comes with obligations and it is always necessary to make efforts to obtain it, and not sit idly by.

Just as Earn on Victor said, it's not the abilities of the status quo rich people to make more profit but the capability. If we start analyzing critically, these people do not have more intelligence than the status quo, but they only have an admirable opportunity that we all wish to have. Most inherited capacity from ancestors, so does that show they are better than others? No, they only got privileges to do more.

Back to the discussion, I don't see much to learn from status quo rich people because they don't have the gods to take action, if not from the hands of a behind-the-scenes team that tries to put them together.

This set of people invests in things that status quo poor or middle-class citizens invest in, but what makes the difference is the high ratio of return as a result of high capacity, so if calculated properly, it is not that they like to invest in less liability, but they seem to have reduced these taxes because of their status.

I can tell you for free that this is biased based on your location. Most of the assets you categorized as liabilities can be the very best investment you have made, like I said, based on your location.
Most times, from my location, people who even invested in real estate and cars are way more successful than those who invested in other things. If you have business and it's facilitated by movement, then cars will be the best investment so far because they will reduce the cost of your spending (taxation) rather than increase it. etc I wouldn't like to argue much, but this is just the tip of the iceberg as an example.

Lol, you know you have only one life to live, right? By owning nothing, you're just hurting yourself by trying to pose it as an avoidance of taxation. If you have the money to buy something, then get it for yourself. Stop stressing your entire life trying to impress yourself with a lack of proper care.
Even the status quo rich (wealthy) people you admire to be like have so-called liabilities in their possessions.

It's not only the knowledge the poor won't surround themselves with. Thus no chance of getting a break.

You need to know a little and surround yourself with people who manage companies.

It's definitely not that easy.

Yes you are correct
Rich slowly and secretly exit from bad debt markets into more solid cryptocurrency...but poor stay poor because he don't want to learn or study the real knowledge.

There are some things that I feel are reasonable in terms of legal issues within the scope of my own use. With some tax regulations, I think there are some ways to avoid having to pay the fees that we are entitled to. Hearing a lot on news sites is valid. But I don't completely support that, because I also have experience in many different countries, so if you look at the economy in a strong country with a weak economy, the tax issue is probably easy to deal with. But how rich people use their money is a personal story, like do you want people to know how much money you have? Fairness or injustice depends on whether we can adapt to that framework, and of course, there is really nothing perfect according to the crowd's standards. When there is something that conflicts with people's opinions, people will reveal the hidden nature quite clearly. Owning any asset will correspond to their responsibilities, so I think it's not too important how someone operates will be everyone's practice. Anyway, it's just for reference.

I don't get why OP was saying the rich don't like to own things because of taxes. That's not true at all. The rich own more things. They own more assets and they even pay taxes for things that are even liabilities.
It's not like others do not want to own assets, but they do not have the means to buy.

Where it becomes a problem for the poor is having a property that you pay taxes on that's not an asset. I'm not saying we should only have assets as that is not possible, but try to get money from any expensive thing you're buying so that thing doesn't become a liability.
For instance, what's the point of buying a phone worth over $1000 if you don't make any money directly or indirectly with the phone?

irresponsible money printing? A recipe for inflation and a direct hit to our wallets. The rich? They're agile, transferring assets to avoid economic bullets. Real estate, though a good investment, requires a lot of upkeep and taxes. Why bother when there's a better play?

Bitcoin ETFs can evolve. Yes, the move from traditional assets to Bitcoin is strategic, not a trend. When the BTC ETF launched in Toronto, smart investors flocked toward it, leaving real estate in a slump. Strategic financial evolution - not a coincidence. Bitcoin provides a safe haven with minimum maintenance, limited costs, and inflation protection. The message? Without considering Bitcoin, you're missing a tremendous opportunity to safeguard and build your capital.

Yeah right, I mean who doesn't want to get rich? We all want to get better but maybe it's true, not everyone will be equal even if they have the same wants in life. Just like your perspective, You don't want to follow them but you want to adopt their positive mindset in life in order to achieve your own goals and wants.

It annoys me when people give the rich one special peculiarity or make it sound as if they are one better version of a human being, No, they are not, they are only privileged. And for the record, the poor think and work harder than them. Even among these rich people, only a few plan so well on their own, people plan for them especially if they have a good team. It is the idea of the team that helps most of them to keep growing and running their businesses and luxury lifestyles, not that all the ideas primarily come from the rich. And guess what? Those who you do not think of or that you might consider the low class people are the ones they derive these ideas from, so what is so special about the rich?

What makes the rich look special? They have money and resources (human and others), so they use these resources to think and achieve their goals. When it comes to investment, it doesn't segregate, it is for the poor and rich, but it is people who do the segregation and peculiarity. I know a lot of ordinary people investing and doing side hustles to reduce the effect of inflation and make more money. The worst is for the rich to invest more and the poor to invest little due to their capabilities. For this, they always believe the rich are better, which is not the case. It is only the difference in resources. If you see how the poor and average people are planning their lives too, they do it well even with their limited resources, and they are now reducing the effect of inflation with investments of many sorts. And of course, there is no way the investment of the rich will not outstand that of the poor, and so is the return since they have more money to spare. This is how I see it.

Where do you live? Do you sleep under a bridge? Even if you pay rent for an apartment, the owner of the apartment calculates the taxes over this apartment in your rent. Assets are being taxed, not liabilities. Real estate property is being considered an asset, not a liability.
The maintenance costs for the liabilities are being deducted from the taxes(in most countries around the world). That's why many rich people get loans in order to buy an asset. The interest rate for the loans gets deducted from their taxes.
I don't know what impact the Bitcoin ETF approval will have over the real estate markets, but I don't think that it would cause the real estate prices to go down. 

First time i am hearing that a Bitcoin ETF has been approved before and it was in Canada Ontario. So perhaps i have been getting it all wrong. Bitcoin ETF can be approved in other countries if am not mistaken but in the United States, eight firms have tried without success since 2013 to create a bitcoin ETF, according to my research. Perhaps they are skeptical in granting any Bitcoin ETF in the United States. The reasons are kind of deep, because the United State has great influence and of Bitcoin ETF is approved there, the investors would have a big influence on the Bitcoin market. They may have control of the entire market and regulate the price.

Everyone will choose to be rich. But not many end up becoming rich. Becoming a rich person is not as easy as imagined because they can work harder and smarter than other people. They are able to use all their abilities to achieve their goals.

And that means we have to change our mindset so that it can be in line. Rich people have a lot of assets. But for the initial stage, we must avoid having debt. That is what prevents us from becoming rich.

Apart from that, having bitcoin can prevent us from unnecessary costs. So we only spend money on things we really need. And we also pay the taxes.

I don't think I need to follow the rich people; maybe the only thing I can adopt from the rich is the positive mindset they have. Maybe that's all.
Although rich people also have a big impact on a business that they enter into, it has an even greater impact on raising an investment that they will make.

For example, once Blackrock is approved in the Bitcoin spot ETF, it is for sure that Blackrock will buy a huge amount of bitcoin, which most crypto communities expect to be more than 100,000 dollars each in the next year, especially during the bull season.

Although I have also studied the mindset of rich people. But honestly, after I researched further, the answer is that people who think like what the OP said are only rich middle class people. And now try to look at the wealth of Blackrock and the big companies and people in it. Do they own real estate? The answer is of course even very much. Next is whether Blackrock will buy bitcoin for its Bitcoin ETF. The answer is of course. So I think the mindset of rich people who are in the highest class is that they want to have everything. Paying taxes is not a problem for them because they can earn more from every asset they own.
Like they bought bitcoin or Real Estate not to hold it and they just let it sit. But they buy each asset to turn it around and make it another source of income for their business.

So do you choose to be rich, middle class or upper class?

Rich people also have their own levels. So try to learn again about the mindset of each level. So we won't be fooled.

But don't you need a lot of money to be able to afford that? Because that's like owning multiple properties and then you'll be paying for their maintenance. And it's really something that I don't know so I would probably just stick to what I know which is bitcoin investing, I have a pretty decent lifestyle so I don't really care too much making more money unless I know what to do.

REIT funds are suitable for the category of medium-sized investors, as their investments are not sufficient to purchase residential units and they do not want to go through the headache of renting and following up on tenants. Therefore, these funds represent a good point where they can obtain technical support from people in the market and ensure portfolio growth with relatively low taxes and easy liquidation. But the rich They don't use it because they are looking for assets more than value.

We all know that recless money printing and inflation will cause more taxes also higher property taxes.
Rich people knows to hold properties it's a liability the maitance and taxes it's a extra burden and stress.
Instead of owning the single House or building you can just invest in REIT.
I see now there is plan to lower rates and give to the middle-class opportunity to get properties with cheap price and with attractive mortgage rates.
That's how the rich ones get out of the upcoming tax burdens and Extra liabilities and responsebilities.
Now they waiting btc ETF once approved they can allocate  a lot funds from their real estate funds into cryptocurrency Market by using ETF.
When Canada Toronto BTC ETF was approved than a lot real estate investors invested in btc etf their capital and large part of Toronto real estate market was falling lower.
If you can see all the correlation than everything make sense.

If you invest in btc or crypto sure it's a asset and by default with the assets properties there is maitance expenses......but you keep your assets "maintance"cost under control If you do invest by dca % to averaging down.

But one thing for sure people specially the real estate and even CAR owners will be burdened with a lot taxes and liabilities by the goverments around the world.
That's why i stay out of trouble by not allmost owning nothing or any liabilities on my name as possible.