Most Popular “Richest” lists – shared by newsletters, Web Sites, TV, Social Media – are a misleading lie. Most such articles are even – paid – in an obvious or in hidden manner. Here is why!
The basic needs – required for person to be alive in the human society are not so expensive. A Human individual needs – water, food, hygiene and probably some human contact, purpose to live and several other not related to economics activities. People that work from 9-5, pay check to paycheck are handling this. Millionaires could afford this to the end of times. So, Where do rich people spend their money?
Storages of Value
The most value of the richest people are not stored in the currency that it is measured. In some sense – being reach is a lie. The “storages” of value are not monetary, at least not in the major percentage. The richest keep what they have in stocks, real world assets and all kinds of containers, but not – fiat money. If they try to sell a lot of it – it will decrease in value. Simple – supply and demand.
Egoistic Self Purchases
When people are blinded by the glamour of the modern society, they seek – the expensive, the exclusive. People like to feed their egos in all forms. Consumption of accepted and even – illegal substances, expensive possessions, excessive spending.
Investments
Some portion of smart rich people get beyond their own ego and consumption and start thinking how to grow their money. This comes with risk, learning curve, patience, emotional intelligence, knowledge and logical analysis. The deal is to know the levels of abstractions in the human society:
- The Real thing.
- The law – in the corporate world, the different jurisdictions, ways to work-around – legally!!! – the accounting. It is a combination of – current/future profits, assets, etc.
- Finances – local, global – assets, credit, fiscal rules. Do you question why Google in Europe is based in Ireland?
- Fame, the 3rd party – social network databases.
- Statistics from different sources
- The subjective interpretation and experience on reality. The main goal here is how to take it to your advantage.
Another way to think about investments is to acquire Limited Resources. Over the long run, they tend to get expensive and generally keep some portion of the value.
Altruistic return to the Society
Some small percentage of the wealthy go beyond the different spreadsheets and think how to do things altruistically. The goal of a business may be defined as altruistic, but this doesn’t necessarily means it is. There is a difference between how things are displayed and counted – and how they are. When a rich individual is down to Earth, he may selflessly execute on – planting trees instead of cutting, give cures to people, instead of implant diseases [not just to sell the cure], create ways to feed, cure and work – instead of … everything else but – be humane. And this goal and purpose goes beyond any measurement system.