Reasons why the rich get richer

Reasons why the rich get richer

Why are the rich getting richer and the poor getting poorer? What is the secret to accumulating rich wealth? Here are 20 unexplained reasons why the rich get richer.

You can sometimes give the impression that the world is one-sided, especially when you see people who are extremely poor and unable to make a living, but their situation continues to deteriorate despite the extent of the work.

On the other hand, you might not fail to notice wealthy people who are comfortable in all walks of life, but with little to no effort in their path, their wealth continues to grow. Sounds like irony, doesn’t it?

Have you ever wondered why lottery winners are suddenly torn apart  ? The reason cannot be overstated; they are not ready for such wealth and therefore they do not have what it takes to maintain such wealth, let alone increase it.

Forget all the secrets of the rich that you read in popular blogs and magazines, because the authors of most of these articles don’t know what they are talking about; because they just do their job as freelance journalists / writers and get paid for it. Forget about talking about self-discipline, delayed gratification, and good thinking; as these are common traits necessary for financial success in life.

However, in this article, I am going to share an inside secret that makes the rich rich and keeps them rich. After a sincere discussion with my wealthy mentors, my wealthy family friends and their partners; I was able to understand how the rich play their money. I’m talking about tactics most people don’t even know about.

Sometimes it can seem like the world is one-sided, especially when you see people who are extremely poor and cannot make a living. However, their situation continues to deteriorate, despite the scale of the work.

On the other hand, you can’t help but notice wealthy people who feel comfortable in all walks of life, but with little to no effort along the way, their wealth continues to grow. . Sounds like irony, doesn’t it?

Have you ever wondered why lottery winners are suddenly torn apart  ? The reason cannot be overstated; they are not ready for such wealth, and therefore they do not have what it takes to maintain such wealth, much less increase it.

The truth is that there are certain principles that you must follow in order to be able to get out of poverty first and then consolidate by building your wealth. If you study the rich people around you, you can understand what they are doing on purpose and multiply their wealth. The principles or reasons to look for in this article apply to everyone, no matter what part of the continent they live on.

Secrets of the Rich 10+ Reasons The Rich Keep Getting Rich

1. Positive mental attitude

“What we think we become.” Anonymous

To make wealth and continue to increase wealth, you need to have a positive mental attitude. You have to believe in yourself. It is unlikely that you will see a rich person around you who does not believe in himself. Every wealthy person around you has a positive attitude because that is the foundation on which success and wealth are built.

To be successful, you must act big, think big, and speak loudly. Aristotle Onassis

Wealth starts with the right mindset, the right words and the right plan. – Rich dad

2. Save culture

Most of the wealthy people you see around them are absorbing an effective conservation culture! They have a portion of the amount they receive from any business transaction that goes directly into their savings account. Some wealthy people go to great lengths to save over 40% of all their income and place a standing order that prevents them even from withdrawing funds from an account when the amount they are saving has not reached their goal.

3. Risks

“Uncertainty is the friend of the long-term buyer of securities.” Warren Buffett

Without an element of uncertainty, flattening, the greatest triumph of business, it would be boring, routine and eminently unsatisfying. J. Paul Getty

Rich people would keep getting richer because they know how to take risks and risky businesses are more profitable. Not surprisingly, accredited investors continue to seize opportunities in which the average investor would not dare to invest their money.

In today’s fast-paced world, people who don’t take risks take risks. Rich dad

You have to take risks, both with your own money and with borrowed money. Risk is essential to the growth of a business. J. Paul Getty

Seek advice from the rich who still take risks, not from friends who dare nothing more than a bet on football. J. Paul Getty

4. Spend less than what they earn

The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left. Rich dad

More often than not, you might think that most rich people are stingy because they don’t spend the way you want. The truth is, people who get poor are people who spend more than they earn to try to impress people. On the other hand, wealthy people spend less than they earn so that they can save enough to invest when the opportunity arises.

5. They seize investment opportunities

Once you do this, you will realize that any business is limited in its tasks. You will want and need other games, so you will be looking for other companies that you are interested in. J. Paul Getty

The fact that rich people have enough money in their accounts forces them to attract investment opportunities around them. In fact, if a poor person has a great business idea but doesn’t have the money to invest, they are more likely to be a good person. for a wealthy person to invest in a business.

When Rich receives information about such an investment, the first step he takes is to study the idea to see if it will pay off. When all the steps show that it can pay off, they invest.

“We are looking for opportunities where we can offer something better, fresher and more valuable, and we use them. We often move from areas where the client got a bad deal and the competition is satisfied. And with our growing e-commerce business, we are also striving to deliver old products in new ways. We are active and fast, often leaving larger and cumbersome organizations behind. »Richard Branson

6. They invest in opportunities that the poor cannot

Investing in mutual funds is investing at the end of the food chain. Rich dad

One of the secrets of the rich that the poor and middle class don’t understand is that the rich invest in products that are not intended for the poor. In fact, the poor often do not hear about such investments, and even if they do, they are legally prohibited from investing in such investments. The following are examples of such investment opportunities not available to the poor:

  • private placements
  • private equity investment
  • Angel investments / venture capital
  • Business buyouts / acquisitions
  • Syndication of large properties
  • Hedge funds
  • Privatization of State property

7. They buy wholesale investments, not retail

If you are buying stocks on the stock market or stock market, or investing in mutual funds with the hope of getting rich, you are probably dreaming. Why am I saying this  ? The reason I say this is if you buy stocks on a stock exchange or buy mutual funds; then you are probably buying at retail and you can never compare yourself to the rich who buy the same stocks that you buy at wholesale.

Now, how are the rich doing? They do this by buying during pre-IPOs, private placements, OTC transactions, etc.

8. Rich know-how to access low-risk funds:  using the example of Nigeria, as the middle class accesses bank loans locally at exorbitant rates; broad access loans with very low interest rates and flexible repayment plans from foreign banks such as PNB Bank.

If you owe the bank $ 100, that’s your problem. If you owe a bank $ 100 million, that’s a problem for the banks. J. Paul Getty

Be careful when you take on debt; if you are in debt, make sure it is small. If you have a lot of debt, make sure someone else pays for it. Rich dad

9. The rich invest in other people’s money

Ok, so you are actively investing; to create lasting wealth for you and your family? Well that’s fine, but unfortunately you can’t compare yourself to the rich. Why? The reason is that you are probably investing money that you have earned or saved; while the rich invest other people’s money. Examples of other people’s money are loans, mutual funds, etc.

10. The rich support a team of smart professionals

Better to communicate with people than you. Choose partners whose behavior is better than yours and you will move in that direction.

You may be investing alone. You do your own research, analysis and make your own investment decisions. Well, that’s not how the rich invest. The rich invest through the contributions of their professional team of bankers, accountants, investment advisers, tax strategists, etc.

If you pick the right people and give them the ability to spread their wings and award compensation as the carrier behind, you hardly have to control them. – Jack Welch

11. The rich know how to use the law to their advantage. Most people think the rich are above the law because they seem to be. Well the truth is, the rich are not above the law; but they certainly know how to legally circumvent the law because they have the payroll of legal advisers.

To be a fast paced gamer you need to have a plan to get more and more control. In the fast lane, control is more important than money. Rich dad

12. The rich pay less taxes and legally avoid them: the  rich earn more money; they pay less taxes than the middle class and also pay later. Why? The reason is that they defer paying taxes until; on the recommendation of their legal team / tax strategists. The rich are also looking for tax havens to protect their money

13. They know how to obtain and use political goodwill

It is often said that ”  to whom we give a lot, we expect a lot  “. It is the saying or the principle that the rich follow and therefore they get richer. The rich know how to use their money to attract political will. This is why you see rich people and their businesses lining up to donate to political parties and politicians to campaign or launch projects.

14.Rich luxury purchase with return on investment

One of the most important things a real investor should say is this; I want to get my money back and keep my investment. Rich dad

You earn money from a transaction or get paid, and you are about to buy the latest gadget. Of course, it’s okay, because you’ve worked hard for the money. However, the wealthy do not buy luxury items with their savings. They buy luxury items with a return on investment and dividends. This means that they invest first, then spend.

15. Maintaining multiple income streams

It is difficult to find a rich person who has only one source of income. The secret to wealth and the ability to multiply wealth lies in the ability to create multiple streams of income, and this is precisely the lifestyle of the average wealthy person. They are always striving to create new ways to make money.

16. They read everywhere

There are many business opportunities in books and magazines. Rich people know this and they can spend a fortune buying all the information that can expand their investment portfolios and financial opportunities. Most wealthy people will spend huge sums of money staying in the know and learning new skills that will help them manage their wealth properly.

17. Self-control and high level of discipline

One of the main reasons people struggle to manage their wealth is a lack of self-control and discipline. What the rich do is postpone the rewards until they have excess resources to buy luxury.

For example, if it costs $ 3 million to buy an escalation, even if the average rich person has $ 3 million, they may choose to defer their reward until they manage to double or triple their savings / investment at 6 or 9 million dollars before buying only 1 Escalade which is worth 3 million dollars and still has 6 million dollars in savings / investment. …

18. An effective budgeting system works

Another thing that is common to wealthy people is the ability to set monthly and annual budgets. These rich people don’t just set budgets; they make sure to follow the latter. This budget is an estimate of the money they plan to earn in the calendar year and the money they intend to spend serves as a motivator that keeps them moving until that they achieve their financial goals.

20 Get involved in charity

Give and it will be given to you. Right steps, push down, shake and run, people will give up your chest. “Bible

Believe it or not, Mother Nature has a way of blessing the people who give to a needy and depressed society. If you take the time to scrutinize a really rich person who continues to increase their wealth, you will find that they have a share of the profits that they return to society. They do this through what is called  community social responsibility. 

He who gives to the poor must not be lacking. Proverbs 28:27

You will find that most wealthy people take pleasure in donating money for worthy causes they believe in (  supporting studies, etc.  ), helping any charity you choose, or even giving scholarships to students. of all training. After; somehow, luck will knock on their doors.

“Fun yachts, private jets and big limousines will no longer bring life to people, and that sends terrible messages to the people who work for them. It would be much better if that money was spent in Africa and it was a question of striking a balance. ”Richard Branson

In addition to the above, financial goal setting is the propeller that propels most people who end up getting rich. Take into account; that  “Rome was not built in a day”. Every rich person you see today has struggled in your quest to get richer; Make sure you pay attention to the points listed above, make it a way of life, work hard and smart, then you will see how your fortune will grow.