If you’ve ever wondered how wealthy people seem to multiply their money while the rest of us stretch every dollar, it’s not just about income. It’s about strategy. They play chess with money. Most of us are playing checkers.
So what exactly do rich people do with their money that sets them apart? Let’s break it down in a way that makes sense, no MBA required.
They Buy Assets Through LLCs and Trusts
Let’s start with something that sounds a little intimidating: LLCs (Limited Liability Companies) and Trusts.
Here’s the plain English version:
- LLCs protect the owner’s personal assets in case the business is sued.
- Trusts help manage wealth, reduce taxes, and keep things private—often used for estate planning.
Why do rich people use them?
Because they’re not just buying a house—they’re buying a wealth vehicle.
That vacation home? It’s under an LLC. That rental property? Also an LLC.
And many of their high-ticket assets—like art, businesses, or even luxury cars—may be held in a trust for long-term wealth preservation.
It’s not just about privacy (though that helps). It’s about protection, control, and often—tax advantages.
Here’s How You Can Use These Strategies Too
You don’t need to be a millionaire to think like one.
- Start with education.
Ask:- “Do I need an LLC for my side hustle?”
- “Should I open a living trust for my family?”
- “What are the tax implications if I do?”
- Look at proximity.
Real estate, for example, is all about location. But also think:- What’s close to me that has potential?
- Are there up-and-coming neighborhoods or business zones nearby?
- Understand fees.
LLCs and trusts come with setup and maintenance costs.
Ask before you pay:- “What are the filing fees?”
- “Do I need a registered agent?”
- “Are there annual renewal costs?”
- Consult professionals—but ask the right questions.
When hiring a CPA, attorney, or financial advisor, ask:- “What strategies do your high-net-worth clients use?”
- “Can I structure my assets in a similar way, even if I’m not a millionaire yet?”
- Play the long game.
Wealth isn’t built overnight. But by holding your assets under legal structures and thinking legacy, you start to build like the rich do.
Breaking Down the Jargon
- LLC: A type of business structure that separates your personal stuff (like your car or home) from your business stuff (like your Etsy shop or rental property).
- Trust: A legal entity that holds property for someone else’s benefit—usually family members. It can skip probate and even reduce estate taxes.
- Asset protection: Means if you get sued, your personal stuff can’t be touched if your business or trust is properly set up.
- Tax advantage: Using the system legally to pay less taxes—like writing off expenses or avoiding double taxation.
Bottom Line
Wealthy people don’t just spend money. They protect it, hide it, leverage it, and grow it.
You don’t have to be rich to start acting like it. Even a modest income can grow if you use smart tools, ask better questions, and play long-term games.
