I am not saying that these are the characteristics of all the real rich. It is just my observation.


  1. They are focused, and know what they are doing: Most of these rich people outsource everything that is a chore. However, they know what they are doing. All most all of them have maids, cooks, drivers, accountants, etc. They outsource what they know – they can sack the people they have employed and do the work themselves. This actually gives them a lot of confidence in what they do. I met a man who had sold his business and was sitting on a lot of money. He started banking with an European Bank and established a US $ 1 Million relationship. It was bank fixed deposit, some mutual funds, etc. Slyly he tells me he was looking at an European acquisition, and may need a banker’s reference. He had chosen a French bank, of course. To the IFA dealing with him it looked like a foolish move, to his CA it looked like unnecessary work, but when he told me the reason, at least for me things fell in place. Sure the deal itself looked inefficient – but he let the RM and branch make some money – till the French deal was to happen!
  2. They hire professionals, but keep the strings in their hands: they have good CAs, IFA, lawyers, bankers – and know exactly what they are outsourcing and what is the fee that they are paying for the same. I was hired as a ‘mentor’ for a year – for the kids in the family to ask me questions on a whole range of topics – and I spent 2 hours a week with the 22-26 year old kids (3 in all). Most of the interaction was online. They were so specific in their hiring!!
  3. Every thing that is outsourced is also done in house. This means somebody in the family knows why the investments are made, why so much of tax is being paid, what fund houses have had corruption issues – amazing ‘ear to the ground’ while investing. The professional IFA dealing with them has no clue how much the family knows about the IFA. Perhaps more than what the IFA knows about the family. They use him for his execution skills and getting things done at the amc level – they have no need to or willingness to deal with the amc underlings. About Rs. 15 crores is with one IFA. Investments beyond that are handled by the IFA, but on a direct basis. This is like hiring a CA at Rs. 10-11 Lakhs and asking him to look after the investment. Great deal.

You must have read a lot about the Law of Attraction. Rich people are comfortable about their being rich, feel that they deserve it, and d not go through a guilt of being rich! Children are taught a lot of financial responsibility. I have seen oneย  parent rebuking a kid for treating the family domestic help badly. That girl was told “have respect for him – he is working in YOUR HOUSE to keep it clean because YOU ARE not capable of doing it – feel lucky that he is available”. Good advice for most of us who take domestic helps for granted!

How much money did you earn 10 years ago?

what about twenty years ago?

Prices have gone up a bit during this time frame, but what about your investment rate?

If your annual income is currently Rs. 18,00,000 per year and in the past it was Rs. 12,00,000, why did you spend more as it came in?

If you refuse to invest half your income (as your income increases, this ratio should keep increasing) you are CLEAR that you do NOT want to be rich.

Wealthy people have vision, and I see them use it sensibly. They are focused on where they are, where they are going, and how they will get there.

Family businesses have internal rules on when they will abandon a bad business – both time and money targets are set.

How the real rich are different


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  1. Thanks so much for providing us gems as these. Your articles provide us a glimpse of how the rich think and now how much they have. If I can imbibe some of it nothing can stop me from being a decent man! ๐Ÿ™‚

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