Do you know why are billionaires like Bill Gates, Jeff Bezos, and others buying farmland?

 The Secret on How The Rich Build Wealth

 The mentality and habits of the wealthy have been widely studied, comparatively little has been known about how the rest of us can integrate this wisdom into our own daily lives activities. How we think about money and more significantly, how we reason and act with our money speak a large part of our financial outcomes. While much of the psychological orientation of the wealthy is derived from the stability and satisfaction created from their wealth, other characteristics of wealth can be used by almost anyone seeking to improve their finances.

1. The Rich Build Multiples Streams of Income

If you read many stories about the rich, you’ve probably noticed that most rich people have multiple streams of income. Mostly by default, the rich go to great lengths to make sure they have money coming in from all directions – or, as some might say, “making sure their eggs are in many baskets.”

However having money coming in from multiple sources, the rich can make sure the money never stops rolling in. it’s hard enough for some people to figure out how to create a single income stream, let alone more than one.

2. Investing

When it comes to investing the rich understand the rule of the game much better than anything. To earn extra income, let’s not forget about the most obvious income stream the rich invest in. While everyone who invests for extra income does it differently, most people rely on mutual funds, ETFs, or dividend investing. Bot the rich believe on the power of investing.

The rich love investing in lending marketplaces like Lending Club and Prosper. Each of these provides side income in the form of dividends, interest, and even capital gains paid out at the end of the year.

While investing for side income can work out well, most of their personal investments are tied up in our retirement accounts.

3. The Rich Make Wise Purchases.

 When it comes to purchasing, the rich focus more on fixed assets in their portfolio they don't make large purchases, such as a house, a car, or anything else with a big price tag, that how the wealthy think, and choose something that’s likeliest to hold its value or even appreciate. Buy gently used cars that have already taken most of their depreciation, or if you’re really into vehicles, a collectible that may even appreciate someday. Ditto for your housing. The rich know how to buy homes that will grow with the market, and to make renovations that add to is overall value and not just your personal preferences.

4. The Rich Protect Their Finances at any Cost.

 As their earnings potential and net worth increase, their insurance covers these assets. The rich cover themself with disability insurance, high-quality health, home, and car insurance, and an umbrella policy for anything else. This also includes having ample emergency precautionary motive savings, so that they can weather any financial storm, as well as backup sources of income to alleviate any variations in earnings.

5. Finally, the rich don't forget to plan for their Legacy

Whether they choose to leave their money to family or a favorite organization, they make sure their money has a purpose. This means setting up safe trusts so that children don’t spend the money frivolously, or setting specific terms for the use of their hard-acquired capital.