7 Things Rich People Never Do

I’ve adopted the mental model of Charlie Munger when it comes to living a good life. It’s useful to gain insights into the thought process of certain rich people.

Munger was trained as a lawyer, got briefly into real estate development, and built his fortune together with Warren Buffett in Berkshire Hathaway. Munger says:

“My system in life is to figure out what’s really stupid and then avoid it. It doesn’t make me popular, but it prevents a lot of trouble.”

It’s attractive to talk about all the things rich people do and how you can build wealth. A large part of my work focuses on the right actions we should undertake to get wealthy.

But what I don’t always share is how I figured out the right actions. Most of the time it’s a matter of looking at the wrong options and doing the opposite. In this article, I’m sharing 7 things that you want to avoid if you want to get rich.

These things might sound obvious, but avoiding these types of pitfalls will set you up for success. They should never be overlooked.

1. Using credit card debt

Using credit cards as a payment method is fine. When the full amount is taken out of your checking out every month, you don’t pay interest.