How Rich People Think About Money: 3 Secrets They Never Share

In all the years I spoke at professional conferences, I shared three gems about understanding money.

Few ever pause to pick them up and think about what they mean for personal wealth.

You can.

Paul Markey taught me these priceless keys to wealth.

He was a successful real estate developer in San Antonio, Texas.

Maybe one of the most successful in the U.S.

His crowning achievement was Stone Oak, one of the largest privately planned cities in the United States.

How Money Works

Growing up with his son, Mike, I watched Paul run his business.

He never worried about missing a deal because he understood money.

“Steve, there are three kinds of money.  Now-now, now, and later.“  Paul Markey

Now-now is the money you make today and spend today.

Now money is money you have available but choose not to use.

Later is a down-the-road payday.

At 26, I was happy just to get option 1. Never mind options 2 and 3.

Quite simply, the goal is to direct more resources into the last two pots.

Now-Now Money

Now-now money is almost all folks have. This is the money people make today and use quickly.

I see this with people making $1,000,000, $300,000, or $30,000 per year.

Four reasons for this.

• Unable to stop at enough
• Unable to get over the myth that the world owes them
• Unable to see the future value of a dollar never spent
• Unable to stay focused on a core business

Now Money

Very few have money now that they don’t need now.  Just like very few people have income they won’t spend now.

But this all gets back to appreciating what money is and how it works.

“Now money” can become a growing part of your life, even if you are starting way behind with lots of debt.  How?

George Clason, in his 1926 classic, The Richest Man In Babylon, describes a debt-ridden camel trader who emerges from financial chaos into financial freedom.

“I found the road to wealth when I decided that a part of all I earned was mine to keep.”  The Richest Man in Babylon

So the discouraged camel trader took a lesson from his wealthy friend and restructured his income like this…

• 10% savings
• 20% debt
• 20% taxes
• 50% lifestyle

I call it being broke on money that’s here but not used. Kind of like an uneaten dessert.

“Now I will tell you a strange truth.  When I ceased to pay out more than nine tenths of my earnings, I managed to get along just as well.  I was not short for money.  And it wasn’t long before coins came to me more easily than before.” The Richest Man in Babylon

A part of all you earn is yours to save, even while paying off debt.

Later Money

 Even more scarce are those who are willing to put away resources that won’t return for years down the road.  Why?

• Because of the craze to hit the big home run
• Because of an obsession that you deserve everything now

But the road to wealth begins by setting limits on weekly and monthly income so that a percentage always goes to savings.

Later money asks a deeper question. Can you trust tomorrow enough to live differently today?

What are your favorite lessons about money?