12 Lies Rich People Advise Others, But They Don’t (Always) Follow

It’s easy to be swayed by the glossy allure of “secrets to success” shared by millionaires. But dig a little deeper, and you might find a disconnect between what they preach and what they practice. This revelation isn’t just intriguing—it’s crucial for those trying to emulate their success. Many of us take their words as the golden rules for achieving wealth, like reducing expenses, diversifying investments, or getting out of debt. Here are 12 Things Rich People Say They Do But Don’t really follow!

1. Education: Do Rich People Really Value It?

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Many say going to school is essential. It’s a standard path when unsure about the future. School won’t necessarily put you ahead, but it keeps you from falling too far behind. It’s practical advice for most, but not for the wealthy. Wealthy folks usually have more appealing options than traditional education. They often view the school system as outdated, gaining little more than networking opportunities. For their kids, the elite either choose exclusive schools or create their own, bringing in top-notch global talent to teach.

2. Spending Habits: Do the Wealthy Really Cut Costs?

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It’s common to hear rich people advise others to spend less. However, saving alone won’t turn you into a millionaire. Instead of just saving, wealthy individuals focus on increasing their income. Telling someone to “just make more money” can be confusing without the right financial understanding. There’s a practical limit to how much you can cut back your expenses, but no cap on potential earnings.

3. Debt Management: Is Getting Out of Debt a Priority for the Rich?

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General advice suggests eliminating debt is crucial, which is sound if finances are tight. Yet, rich people often do the opposite by leveraging debt to enhance their wealth. Using other people’s money can be a powerful tool—if you know how to use it wisely. Otherwise, staying clear of debt might be safer.

4. Risk Taking: How Cautiously Do Rich People Play?

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Many believe success involves risks. Wealthy individuals understand not all risks are equal. They avoid unnecessary risks that could impact their wealth significantly. Instead, they take calculated risks, ensuring they have a safety net. So, while they might take on more risk with a portion of their assets, the majority is securely invested.

5. Stepping Outside the Comfort Zone: Do Wealthy People Really?

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Advice often given is to leave your comfort zone to grow. However, many wealthy people prefer to focus on what they know best, minimizing unnecessary risks. They aim for predictable outcomes, focusing on their expertise to maximize success. Venturing out can sometimes lead to loss of focus and dilution of knowledge.

6. Retirement Savings: Is It All About Age for the Wealthy?

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Saving for retirement is wise, providing long-term financial security. Yet, for the wealthy, retirement isn’t about reaching a certain age but about achieving a financial goal. The concept of saving as the sole path to retirement doesn’t align with their strategy, focusing instead on significant wealth accumulation.

7. Real Estate Investment: Is It as Simple as It Seems?

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Real estate is often touted as a secure investment. The truth is, while it can build wealth, it’s not the quickest path. Wealthy people know that true wealth often comes from owning businesses rather than just property. Real estate investment can be profitable, but it’s not the only or the best way to wealth.

8. Following Passions: Is It Viable Financially?

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The idea that following your passion can lead to a career where work doesn’t feel like work is appealing. Yet, transforming a passion into a viable business is rare and often not financially sustainable. Many who start businesses based on passion find themselves either stepping back from management or selling their business.

9. Acknowledging Failure: How Do the Rich View It?

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There’s a notion that failure is an essential part of learning and growth. However, wealthy people often try to minimize failures as much as possible. They see failures as setbacks, not learning opportunities. While it’s possible to learn from mistakes, the wealthy’s strategy often involves avoiding them as much as possible.

10. Diversification: What Does It Mean for the Wealthy?

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When rich people talk about diversification, they’re not just talking about having a variety of stocks. They mean securing their investments in a way that balances safety and risk. Most of their wealth is invested in secure, well-understood opportunities. The rest might be allocated to more speculative ventures, but always under careful consideration.

11. Staying Informed: How Selective Are Wealthy People with Information?

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In a world overloaded with information, staying selectively informed is key. Wealthy people prioritize and manage the influx of information carefully. They often delegate research and focus only on information that directly affects their decisions and investments.

12. Passive Income: Is It Passive for the Wealthy?

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Passive income is often seen as an easy way to wealth. However, it typically requires a substantial initial effort or investment. Wealthy individuals focus on creating streams of income that might appear passive but are the result of active and strategic investment in businesses or stocks. These are not minimal-effort ventures.