How The Rich Get Richer – 4 Surprisingly Simple Ways
If you have ever wondered how the rich get richer, one of the factors you have to put into consideration is that they follow specific principles which are freely available to the average person.
However, a lack of knowledge of these principles is one of the major roadblocks to success.
With the right information and the right mindset, it is easy to understand that the concept of how the rich get richer is not a conspiracy.
This article will reveal four ways in which the rich get richer, while the average person looks on.
1. The rich are masters at leveraging debt
The concept of using other people’s money is not really new. Rich people through the ages have had a different approach to debt than the average person.
Most people look at debt as an opportunity to consume tomorrow’s income today and therefore accumulate a lot more debt than they are able to pay, leaving them bankrupt.
This is one of the reasons why people are starting to think that debt is bad.
Rich people however realize that they can use debt to create more money, save on taxes and increase the return on their investments.
They understand that debt is not for consumption, but a stepping stone against which they can multiply their income.
2. The rich invest in their financial education
I am sure you have noticed how people without a college education end up accumulating large amounts of wealth.
One of the fundamentals of success is having an in-depth knowledge or specialization in your work irrespective of whether you went to college or not.
Furthermore, without the proper financial education, it is difficult to get ahead financially. Rich people are aware of this and as a result, they invest in their financial education and get richer.
3. The rich teach their kids the right things about money
Most rich people, especially those who started with nothing, had to overcome obstacles that might have seemed insurmountable. However with desire, determination and a will to succeed, they were able to accumulate riches.
Unfortunately, the conditions that motivated them into action become difficult to simulate in order to spur their children into inspired action.
As a result, they face the risk of bringing up children who may not be able to handle the responsibility that comes with great wealth.
They therefore focus on teaching their kids the right things about money from a very early age.
4. The rich make money, not excuses
It is often said that you can either make money or excuses but not both. When things go wrong, the average person will find all the excuses of why they could not succeed, and how they expected things to go wrong in the first place.
They eventually give up.
However, rich people have a different approach. When things do not go as planned, they change strategy and eventually succeed, getting richer in the process.
Now that you know how the rich get richer, do not waste your life away with feelings of resentment for the financially successful.
Instead, think of ways to go about increasing your level of financial education and taking action on what you learn.
Augustine is a consultant and entrepreneur. He helps people discover their true potential to turn their dreams into reality. Click here to join his mailing list and claim your FREE gift (a $27 Value).
How then can people with inadequate financial and emotional intelligence be encouraged to take their destiny in their hands because in my research as a wealth coach consultant, they always behave like a dwarf and only a very insignificant number are willing to learn and apply what they learn.They complain and blame people around them as the reason for their non performance.
That’s a very interesting observation Samson. I have noticed that that the few who are willing to learn and apply what they learn are those who believe in themselves, and are truly determined to change their current circumstances. As the saying goes “When the student is ready, the teacher appears”.