13 Things Rich People Won’t Tell You – Book Review

📘 Summary of 13 Things Rich People Won’t Tell You

Build wealth. Live richly. No matter your salary.

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📖 Big Idea

Wealth isn’t about earning more—it’s about thinking long-term, spending with intention, and mastering everyday decisions. Even janitors and clerks have become millionaires—not by magic, but by following smart, repeatable habits the wealthy live by.

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🧠 Key Mindset Shifts

• “Rich-guy vision” = seeing 10–20 years ahead, and making today’s choices for that future.
• Frugality ≠ Deprivation. It’s strategic freedom.
• Stop performing wealth. Real rich people don’t drive the flashiest cars or wear the trendiest brands.
• Plan joyfully. You can enjoy life now—if you budget smartly for luxuries.

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✅ Core Habits & Secrets

1. Save first, spend later—automate savings from every paycheck.
2. Live below your means—even as your income rises.
3. Budget luxuries like vacations, boats, or clothes—never impulse buy.
4. Never pay full price—buy used, bargain, or wait for deals.
5. Avoid credit debt—pay in full or don’t buy.
6. Own a modest home—location matters more than size or show.
7. Invest in education wisely—choose colleges with ROI, not reputation.
8. Think like a business—track spending, negotiate everything, set financial goals.
9. Make retirement non-negotiable—start early, stay consistent, don’t dip in.

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💡 Millionaire Action Plan (MAP)

• 💸 Automate savings weekly—even ₹500 adds up.
• 🧾 Track and trim unnecessary spending monthly.
• 🎯 Write down 3 long-term goals (retire at 55, buy a home, travel Europe).
• 📚 Learn financial basics: budgeting, investing, insurance.
• 🛍️ Delay gratification—save now, indulge smartly later.

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🔓 Truth Bombs Rich People Know

• “If you can’t buy it in cash, you can’t afford it.”
• “Real wealth is quiet. Debt is loud.”
• “Discipline today = freedom tomorrow.”

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🏁 Final Message

You don’t need to earn like a millionaire to live like one.
You just need to think like one—with clarity, intention, and grit.

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About the Author – Jennifer Merritt
Jennifer Merritt is an accomplished journalist and editor with a passion for personal finance, career development, and practical money advice. With years of experience at prestigious publications like The Wall Street Journal, Bloomberg, and Reader’s Digest, she has helped millions of readers make smarter financial decisions. As co-author of 13 Things Rich People Won’t Tell You, she combines storytelling with actionable wisdom drawn from real-life millionaires, everyday savers, and financial experts. Merritt’s writing empowers people from all income levels to take control of their money, build wealth intentionally, and live rich without relying on a high salary.

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Let me Explain it Chapter by Chapter for you….

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🏆 Chapter 1: Joining the Millionaires Club

📖 Mini-Story Recap
Imagine a janitor named Genesio Morlacci. He wasn’t a tech founder or Wall Street genius. He was a man who patched up his pants, rented out his basement, and reused last year’s boots. Yet when he passed away at 102, he left $2.3 million to a university. Another janitor left $1 million to a local school. These weren’t miracles—they were the results of small, smart decisions over time.

🧠 Key Insight / Mindset Shift
You don’t need a fat salary to grow rich—you need rich-guy vision: the power to look years ahead and act accordingly today. It’s not about deprivation; it’s about smart choices. Wealth isn’t built by what you earn, but by what you do with it.

The 13 Wealth-Building Secrets Rich People Know (But Won’t Tell You)

1. You Need Far Less Money Than You Think
   Millionaires are often frugal. Even janitors earning ₹20–30K/month have built wealth through consistent saving and modest living.
   
2. Work More, Earn More (Strategically)
   Rich people say yes to overtime, side projects, and consulting gigs—not for extra spending, but for extra saving.
   
3. Brand Names Are Just Money Traps
   They avoid paying for labels. Store brands and smart alternatives save thousands over a lifetime.
   
4. A Little Scrimping Goes a Long Way
   Modest choices (like reusing clothes or renting out a room) add up to major savings over decades.
   
5. Don’t Keep Up with the Joneses—They’re in Debt
   That neighbor with the big car may be broke. Rich people admire those who spend smart, not flashy.
   
6. Perks at Work Can Build Wealth
   Vacation payouts, company cars, phones, and discounts are not ignored—they’re redirected into savings or used for smart treats.
   
7. Follow the 3-to-1 Rule: Needs vs. Wants
   They spend 75% on needs, 25% or less on wants—discipline fuels abundance.
   
8. Never Buy New (Except Underwear)
   From used cars to pre-owned furniture, the wealthy avoid the instant depreciation of new purchases.
   
9. Buy the House, Not the Lifestyle
   Big homes often mean big bills. Rich folks downsize or choose practical homes in up-and-coming areas.
   
10. Ditch Expensive Vices
    Smoking, excess drinking, and impulse shopping silently steal thousands per year.
    
11. You Won’t Spend What You Don’t See
    Automatic savings = painless wealth building. Out of sight, into savings.
    
12. If You Can’t Pay Cash, You Can’t Afford It
    They use credit for convenience, never for things they can’t pay off in full quickly.
    
13. Use Social Savings to Stay on Track
    Join savings clubs or set group goals—accountability helps you reach financial milestones without falling off course.

✅ Exact Instructions (Practical Steps)

1. Save automatically—even if it’s $5 a week. You won’t miss what you never see.
2. Work extra when you can and stash the extra cash.
3. Avoid brand-name traps; store brands often do the job for less.
4. Prioritize needs over wants (3:1 ratio).
5. Buy used (except for underwear!)—cars, furniture, clothes.
6. Say no to credit unless you can pay it off within a month.
7. Ditch or reduce costly habits like smoking.
8. Start a savings club with friends for vacations or big goals.
9. Don’t try to keep up with flashy neighbors—many are drowning in debt.
10. Reinvest perks (like unused vacation payouts) into savings.

🔑 Pointers for Action

• ✏️ Start a “Future Vision List”—write 3 long-term goals (e.g., retirement, vacation, home).
• 🏦 Open a savings account and set up automatic transfers (start with ₹500/week).
• 💡 Buy a piggy bank and start a coin jar system—it’s fun and effective.
• 🛒 Next shopping trip? Buy one generic brand product and see if you notice any difference.
• 👟 Walk away from luxury “lifestyle creep”—especially after a raise.
• 💬 Consider joining or starting a small social savings group with friends or family.

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💰 Chapter 2: Become a Budget Master

📖 Mini-Story Recap
Meet Betsy. Once a carefree wife living on Manhattan’s Upper East Side, her world turned upside down when her husband died unexpectedly—leaving her with three children and little savings. Forced to reinvent her life, she became a real estate agent. But here’s the twist: instead of living like before, Betsy flipped the script—she saved more than she spent. No more lavish dinners or impulsive splurges. Her discipline turned into a comfortable fortune that paid for her kids’ college and secured her peace of mind.

🧠 Key Insight / Mindset Shift
Budgeting is freedom, not limitation. Rich people budget because they know every rupee has a job to do. It’s not about pinching pennies—it’s about knowing where your money is going so it can serve your future dreams.

✅ Exact Instructions (Practical Steps)

1. Define your “rich vision.” What are you really saving for? Retirement? A beach home? A child’s education?
2. Timeline your goals. Separate them by short-term (2 years), mid-term (5–7 years), and long-term (10–15 years).
3. Prioritize your dreams. If something has to go, which goal would you delay or downscale?
4. Avoid lifestyle creep. When income increases, increase savings first before adding luxury.
5. Track all small expenses. Little treats (coffee, takeout, upgrades) quietly kill wealth.
6. Course correct quickly. One bad month is a slip—not a slide. Wealthy people catch themselves early.

🔑 Pointers for Action

• 📓 Create a three-column budget: Needs / Wants / Dreams. Apply the “1 part want, 3 parts need” rule.
• 📅 Set financial milestones on your calendar (e.g., ₹1 lakh saved by December).
• 💸 For every raise or bonus, double your savings rate before upgrading your lifestyle.
• 🧾 Review monthly statements to track your “leaks” (subscriptions, dining out, upgrades).
• 🛑 If you mess up—stop, assess, reset. Don’t let a ₹5,000 mistake become a ₹50,000 habit.

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🏠 Chapter 3: Your House and Home

📖 Mini-Story Recap
There’s a couple who bought a house in a posh neighborhood—low square footage, high mortgage, and suddenly… higher expectations. The lifestyle followed: designer furniture, fancy parties, premium everything. Fast forward five years: they were cash-strapped, stressed, and slowly slipping into debt. Just down the street, another family lived in a modest home, never renovated unnecessarily, bought gently used furniture, and avoided the “show-off” trap. Guess who ended up with more financial freedom?

🧠 Key Insight / Mindset Shift
Your home is your greatest asset—or your biggest money pit. Rich people treat a house as a tool for stability, not a symbol of status. Smart homeowners think beyond the curb appeal—they think resale value, utility, and low upkeep.

✅ Exact Instructions (Practical Steps)

1. Buy below your means. You want a home that fits your needs, not your ego.
2. Don’t over-upgrade. Renovate for function, not flash. Avoid spending ₹5 lakh for a ₹2 lakh return.
3. Focus on location. A modest house in a good neighborhood beats a fancy one in a risky area.
4. Think long-term utility. Skip giant lawns (higher maintenance) or pools (low ROI).
5. DIY when you can. Learn basic maintenance skills—YouTube is your friend.
6. Rent smart. Not ready to buy? Look for value, not luxury. Some millionaires rent too—strategically.

🔑 Pointers for Action

• 📝 Make a “Home Cost Reality List”: Include EMI, maintenance, property tax, and average annual repairs.
• 🛠️ Before upgrading your home, ask: Will this add value or just impress visitors?
• 🧾 Use real estate websites to check the actual appreciation in your neighborhood—not assumptions.
• 📍 Explore up-and-coming areas instead of overpriced hotspots. Look for walkability, schools, and growth indicators.
• 🛋️ Buy gently used appliances or furniture—sites like OLX or local sales often have luxury items at 30–50% less.

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🎓 Chapter 4: The Financial Road to Higher Education

📖 Mini-Story Recap
A single mother once thought college for her daughter was out of reach. Then she discovered a lesser-known scholarship from a local business group and realized her daughter’s dream school had a generous need-based aid program. She took evening courses to understand how financial aid works, planned early, and avoided student loan traps. The result? Her daughter graduated debt-free, and she didn’t go broke in the process.

🧠 Key Insight / Mindset Shift
College doesn’t have to mean crushing debt. Rich families rarely pay full price for college—they plan strategically, use every scholarship loophole, and treat education like an investment with a measurable return.

✅ Exact Instructions (Practical Steps)

1. Start early. Even ₹500/month in a high-interest savings or education-specific fund grows significantly in 10–15 years.
2. Choose ROI-based colleges. Look at graduation rates, job placements, and starting salaries.
3. Don’t ignore “expensive” schools. Elite private colleges often give the most aid.
4. Apply everywhere. Treat scholarships like a job. One ₹25,000 award is a few hours of work.
5. Include your child. Let them research costs, fill out forms, and understand the financial commitment.
6. Avoid parent loans. Keep your retirement intact. Explore work-study, grants, and part-time student jobs instead.

🔑 Pointers for Action

• 📊 Create a “College ROI Comparison” sheet for at least 3–5 target colleges.
• 🧾 Bookmark scholarship aggregator sites (e.g., Scholarships.com, Buddy4Study for India).
• 📆 Set reminders for key deadlines: entrance exams, financial aid, and grant applications.
• 📚 Explore online degree programs or hybrid formats for cost-effective education.
• 🧠 Teach your child basic money management during high school—it’ll reduce financial mistakes later.

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💎 Chapter 5: Living Rich Without Going Broke

📖 Mini-Story Recap
Meet a couple who bought a boat—yes, a real yacht—while still living on a schoolteacher and admin salary. Sounds crazy? It wasn’t. They planned, saved, and timed it just right. They didn’t go into debt or skimp on essentials. Instead, they lived richly on their terms, by mastering the art of affordable luxury—buying used, budgeting smart, and saying “no” to the urge to impress others.

🧠 Key Insight / Mindset Shift
Rich isn’t how much you earn—it’s how wisely you spend.
Wealthy people understand that you can have indulgences—like nice clothes, fancy dinners, even boats—as long as you plan for them. They don’t feel deprived because they budget for joy as much as for bills.

✅ Exact Instructions (Practical Steps)

1. Budget for luxury—just like you budget for groceries or rent. It’s okay to have treats if they’re intentional.
2. Buy experiences, not just stuff. A family trip can create joy and bonding far beyond what a new phone offers.
3. Look rich without spending rich:
   • Shop outlet sales, consignment stores, and flash deal sites.
   • Buy lightly used luxury goods for half the price.
4. Avoid “comparison shopping for lives.” Don’t spend to impress others—you’ll lose both money and authenticity.
5. Use rewards and points smartly. Travel hacking with credit cards (if used responsibly) can give you vacations for almost nothing.
6. Split luxury with others. Share vacation rentals, split boat ownership, or join a co-op for seasonal indulgences.

🔑 Pointers for Action

• 💰 Create a “Luxury Goals” envelope (physical or digital)—put in small savings weekly toward your indulgence.
• 🧾 Track every non-essential expense for 30 days. Circle the ones that didn’t bring lasting joy.
• 🎯 Create a 3-column list: “Needs,” “Nice-to-Haves,” and “Nonsense.” Cut the nonsense, plan for the nice-to-haves.
• 🛍️ Check resale or cashback sites (e.g., OLX, CashKaro, Amazon Warehouse Deals) before buying new.
• 💳 Use only ONE credit card for rewards; pay it in full each month. Use those points for travel or upgrades.

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Bottom Line
You don’t need to be a millionaire to enjoy rich experiences—you need to be intentional. Want to live richly without going broke? Plan it like a millionaire does: with joy in mind and discipline in your pocket.

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🧓 Chapter 6: Retire Smart

📖 Mini-Story Recap
Picture this: a middle-income librarian named Carol who quietly invested a portion of every paycheck into her retirement account. She never earned more than ₹50,000/month, didn’t inherit a penny, and didn’t take financial risks. Fast-forward 40 years—Carol retired with ₹2 crore in her portfolio, a paid-off home, and a travel bucket list she could finally afford. Her secret? Starting early, staying consistent, and never “borrowing” from her future.

🧠 Key Insight / Mindset Shift
Retirement isn’t an age—it’s a financial condition.
The rich don’t “hope” to retire well—they plan it with military precision. Whether you want to retire early, late, or never, the freedom comes from preparation, not wishful thinking.

✅ Exact Instructions (Practical Steps)

1. Start yesterday. The earlier you begin, the more compound interest becomes your best friend.
2. Contribute to retirement first. Before paying bills, eating out, or investing in gadgets—pay your future self.
3. Don’t cash out early. Avoid draining your retirement savings during emergencies—it disrupts decades of growth.
4. Know your “Freedom Number.” How much money do you need monthly after retirement? Multiply by the number of years you expect to live after 60. That’s your target.
5. Diversify like the wealthy. Spread your retirement savings between pension funds, mutual funds, fixed deposits, and health insurance.
6. Automate everything. SIPs (Systematic Investment Plans) in mutual funds or recurring deposits ensure consistency without emotional decisions.

🔑 Pointers for Action

• 📊 Calculate your retirement goal: (Monthly needs × 12) × years retired + 30% medical buffer.
• 📅 Automate a SIP—even ₹1000/month today becomes lakhs in 20–30 years.
• 🚫 Make a “No Withdrawal Rule” from your retirement corpus until retirement.
• 🩺 Invest in long-term health insurance now—aging is expensive.
• 📚 Read up on ELSS funds, PPF, NPS, and Senior Citizen Savings Schemes (especially in India).
• 🧠 Do an annual “Retirement Check-Up”: Are you saving enough? Is your portfolio growing? Do you need to rebalance?

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🎯 Final Takeaway: “Think Rich to Live Rich”

The secret the rich won’t tell you isn’t buried in offshore accounts—it’s in their habits.
They think long-term.
They plan intentionally.
They don’t try to impress.
They invest in freedom, not things.

If you follow even a handful of the ideas from this book—from saving like a janitor to budgeting like a billionaire—you’ll not only build wealth but build a life that feels rich.