Often times people think they are stuck in the position they are in financially. They think that they will forever be poor and never will they have enough money to live comfortably or without living pay check to pay check. I'm here to say that this attitude and view on life is false. The way it seems they are looking at life is there is only one source of income. What is this source? Their job!
However, anyone even those who are not as fortunate with their financial situation can have more than one source of income. For example, investing. Some of you may say " BUT THAT'S IMPOSSIBLE HOW CAN I INVEST IF I MAKE SO LITTLE MONEY.
Look over your expenses, is there anything you can cut back on? That $60 video game you bought? Yup you could have used that money as an investment. The outrageous amount you spend on take out? Yup you could have invested that as well. You may think well what good is investing if i cant use the money, why don't I just put it in my savings account.
Putting money in a savings account would be a good idea if you wanted to save for an emergency or something unexpected. investing in stocks or something else is just like a savings account but not as liquid. By investing in stocks you are able to earn on top of the money you already saved. Sure it may take a while but if you put let's say $500 into a cheap stock if you wait and are patient enough that $500 you put into a $10 stock could almost double your money.
The reason the rich get richer is because they had this mind set early on, they disciplined themselves financially in order to get where they are today. They started out like you and me, out of college and broke, but they learned how to save their money responsibly and as they got older and made more money they were able to make smarter and better investments because of the money they saved early on.
- this was my first post, its all in my opinion I really hoped you guys enjoyed it all feedback is welcome.*
The rich get richer because they buy assets with money they earn. Real assets put money back in your pocket and this appreciation is reinvested. They invest in assets that incur less taxes than income.
The middle class stay constantly struggling because they use their wages to purchase liabilities, liabilities they believe are assets. Cars, boats, homes, electronics etc. all are liabilities. Also, the MC pay the highest taxes because wages are taxed more than any other income.
The poor stay poor because they buy things, and they spend all of their money on things. Not assets, mostly liabilities and just junk. Clothes, electronics, and all manner of useless junk from China.
It is an easy equation to gaining wealth, and the wealthy understand it.