It seems to be a center of a lot of discussion on the Rich Getting Richer. But do you know why they are getting richer? I will let you know what I found out.
Rich people don’t save money — one of the biggest difference between the middle class and rich people is that the rich don’t save money. You hear people in the middle class saying “a penny saved is a penny earned”… no, it’s a penny. Why would you save money while the FED is printing money like a bunch of maniacs? The FED is printing $85 billion a month at this moment. If you know the basics about money, you know that this means that your savings are worth less today than they were yesterday! Especially with the low interest, or sometimes even negative interest rates you receive. Right now it costs you money to save money, how ridiculous is that!?
Rich people buy assets — the rich buy assets and don’t save their money. They buy RE (Real Estate), companies, create companies or products, buy farmland and they lend out their money for interest. Did you see that I didn’t mention stocks? That’s because stocks are fools money investments. The rich only invest in products they actually understand and are not over-evaluated as stocks are right now.
Assets vs liabilities — Middle class people call their house an asset. This is a wrong belief they have in their head. Your house is not YOUR asset. It’s the BANKS asset. Who’s paying the loan interest? Right… and who’s receiving the interest? Right… that makes the rich richer and the middle class poorer. If you don’t build assets and keep accumulating liabilities, you will be broke sooner or later. You should work to buy assets, not liabilities. Assets are investments that (monthly) pay you money, instead of costing you money.
Rich people don’t depend on the government — The rich don’t depend on the government to take care of them. You will never hear them saying “the government should take care of me”. That’s a poor people thought. The government can’t and will not help you. Eventually the government can’t pay for all the entitlement plans and will discontinue them. Which means people who expected the government to take care of them, end up broke.
Rich people create, while poor people wait — Rich people don’t wait for opportunities – they create them. You can’t say to yourself “eventually” or “someday I will do XYZ”. You will never do it! You need to get up off your behind and get right to it. Just go for it, go create a product or service, add value to the market and become free of the 9 to 5 paid by the hour jobs. Everybody can do it, as long as you give your 100%.
Are you ready to join the rich? — On your success!
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