How wealth really works

Hallmarks about how wealth works: Very, very wealthy people understand that the function of money is to buy time. The function of money is not to buy goods or properties, or cars, or things that you can show off on Instagram.

The function of money is to just buy time. How on earth do I buy time? Well, you do a few things. The first is you have to reduce your burn rate. What's burn rate? Burn rate is the rate at which you're burning cash.

Usually, what happens is salary people—and I say this with respect—but people who tend to have access to money on a regular basis increase their burn rate. The more money they make, the more money they burn.

Wealthy people buy time, so rather than spend money, they keep money because they understand having it buys them time. So, wealth is about shifting your mindset from spending money by reducing your burn rate and buying time.

Credits: Vusi Thembekwayo