What the Wealthy Really Think About

“Build it. Grow it. Blow it.”

That’s how I’ve heard more than one Wall St dealmaker describe the nature of familial wealth as I was coming up.

The entrepreneur visionary first-generation sees an unmet need. They address it beautifully and are rewarded with a successful enterprise as a result.

The second-generation takes that energy and grows it. They add scale, increase complexity and usually benefit from several tailwinds across the capital and operating structures.

If you are lucky they are the “I can do better than Dad!” type — that’s when you see the introduction of new strategy, updated tactics, enhanced logistics and more. Perhaps it goes so far as to buy your family business another generation or two.

The final-generation can be difficult to watch.

They are very far from the hunger that incited the launch, or growth, of the business. Typically the company is near (if not outright) all-time headcount, the greatest level of complication, the most mature competition all fueled by the slimmest margins.

Not an easy place to secure victory from. Most people think “the rich get richer”. Sometimes they do. Often they go broke at a higher rate of speed thanks to this apparent wealth. The bills get bigger regardless of your financial success.

First it was built.

Then it was built upon.

Then it was no more.

Which brings me to the subject of this piece: what do the wealthy think about?

The wealthy think about staying wealthy.

They understand that wealth provides both offense and defense. Speed and range.

Speed is the ability to make decisions promptly, take action rapidly when opportunities arise, and operate with autonomy over one's schedule.

Range is the breadth of one's networks, the diversity of perspectives (and information) accessible, and the abundance of environments you can thrive in.

These are magic together.

Speed and Range confer the flexibility and exposure needed to capitalize on emerging possibilities. They enable broader worldviews that fuel innovation. Developing these two areas matter more than simply amassing financial wealth alone when it comes to cultivating influence and impact.

The whole concept of wealth is far beyond the idea of money or even resources.

Wealth is freedom. More on that here:

Because they recognize that spending money is the loss of wealth, many affluent individuals prioritize living below their means. They avoid extravagant spending, focus on value purchases, and budget carefully to ensure their wealth is sustainable.

One of the things that is always worth significant investment is yourself — any upgrades you can make to your EQ, IQ or TQ (technical abilities) are typically regained in months of business. Sometimes a single deal. These business expenses are tax deductible so spending money to upgrade your mental software is a double victory. Wealthy individuals often read books, attend seminars and seek mentorship to gain knowledge and skills that can help them make better business and personal decisions.

Mentorship comes with access and that is very valuable.

Instead of focusing on short-term gains, the wealthy tend to prioritize long-term financial goals. They may invest in assets that have the potential to appreciate over time, or they may plan for future generations by setting up trusts or establishing family businesses.

Another major focus of “the Elite” is to protect their assets from unforeseen events. They purchase insurance, diversify their investments, and develop contingency plans to mitigate potential risks. In the same spirit, understanding and optimizing their tax strategies is a key concern for many wealthy individuals. They may work with tax advisors to minimize their tax liabilities and maximize their after-tax income.

Thinking beyond their own lifetime, wealthy individuals often create estate plans to ensure their wealth is distributed according to their wishes and to minimize taxes for their heirs. Of course - this legacy planning is executed in tax efficient structures with methods that give the foundation and trusts the best situation possible operationally.

Do They Only Think About Wealth?

Very few people build true wealth without a Why. Someone, a cause, an identity… something that drives them forward and toward achievement.

Some folks like to make incredible amounts of money, and then get a bigger thrill giving it all away. Many wealthy individuals donate significant amounts of money to charitable causes, either through their own foundations or by supporting existing organizations.

We are even seeing a rising interest in hybrids of these. Impact Investing is a growing trend in wealth management where they prioritize investments that not only generate financial returns but also have a positive social or environmental impact, contributing to causes they care about.

Many wealthy individuals prioritize their health and well-being by investing in personal trainers, nutritionists, and other wellness professionals.

Other Elites prioritize exclusive experiences that are not available to the general public, such as private jets, luxury travel, and VIP events.

I have found personally that, unlike the rich, the wealthy don’t talk much about material things but instead are very focused on time. They often prioritize time over money, recognizing that time is a finite and precious resource. They may delegate tasks, streamline their schedules, and focus on experiences rather than material possessions.

You don’t see too many wealthy workaholics who celebrate 100hrs a week away from their family closing deals.

Whenever I see the wealthy worry its about the future. They may worry about how their wealth will affect their children's values, work ethic, and overall well-being. Some may actively involve their children in philanthropic endeavors or teach them financial responsibility from a young age.

What You Should Think About

Our world is not just about accumulating money but about cultivating a mindset that values freedom, growth, and impact.

It's about understanding that true wealth extends beyond material possessions, encompassing factors like time, knowledge, relationships, and the ability to make a difference in the world.

While financial security remains a priority, the wealthy are often driven by a deeper purpose, whether it's building a legacy for future generations, supporting causes they believe in, or simply living a more fulfilling life. They recognize that wealth is a tool that can be used to achieve these goals, and they actively seek ways to leverage it for greater impact and satisfaction.

The wealthy understand the importance of continuous learning, personal development, and building strong relationships. They prioritize their health and well-being, knowing that a healthy body and mind are essential for long-term success. They also recognize the importance of giving back to society, whether through philanthropy, mentorship, or simply leading by example.

It's important to remember that wealth is not a static state but a dynamic process. The wealthy are constantly learning, adapting, and evolving their strategies to maintain and grow their wealth. They are not immune to challenges or setbacks, but they possess a unique mindset and set of skills that enable them to navigate these obstacles and emerge stronger.

Ultimately, the pursuit of wealth is not just about financial gain but about personal growth, contribution, and fulfillment. It's about creating a life of abundance, not just in terms of material possessions, but in terms of experiences, relationships, and impact. By understanding the mindset and strategies of the wealthy, we can all gain valuable insights into how to create a more prosperous and fulfilling life for ourselves and those around us.

👋 Thank you for reading Wealth Systems. I started this in November 2023 to share the systems, technology, and mindsets that I encountered on Wall Street.

💡The BIG IDEA is share practical knowledge that can be applied toward the development and refinement of wealth building systems.

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