The Rich And The Poor, Which One Are You?

The Reason Why The Rich keeps getting richer and The Poor keeps getting poorer.

Hello everyone, today's topic is “The Rich And The Poor”. I stumbled on this topic when I read a book titled Rich Dad Poor Dad by Robert T. Kiyosaki. And so I read through the book and find a lot of fascinating things behind the Idea of The Rich and The Poor and what separates them. curious about which one you are? or want to start thinking like the rich? keep reading.

The Rich Don’t Work For Money, They Make Money Work For Them

The idea of working for money is you actively working at a company and getting paid each month. Most people who don’t have an unfair advantage like wealthy parents, start from the same point where they need to work for money.

The poor use the paycheck to pay the bills and have the rest for fulfillment then, the loop restart. This is what the author of the book called Rat Race.

But what the rich do differently is invest their money in assets that make them money.

How they handle their saving and investment is where the wealth came from. Eventually, there will be a point where the assets your investments are going to work harder than both your hand ever could. And that is making money work for them. But the middle class also thinks about assets what is the difference?

The Poor And Middle-Class Asset Misconsecption

Many people like the idea of having money-making assets that grow over time. But, there’s a lot of misconception of assets in the poor and middle-class people, they think the house that they live in and the car that they drive are assets but no, rather than assets they are a liability.

Liability is something you own that has expenses to maintain or to use. Example: House has property tax, mortgage if you pay using an installment and Maintenance Expenses.

That’s why they often stuck in their class never managed to become rich. Because I often see people who just got a promotion and start buying an expensive car, or pay installment for a bigger house that they don’t need. This is also been a valid a goto excuse for being an investment. Stop Making Yourself Poorer

The Knowledge In Your Mind Is Your Greatest Asset

Knowledge is the most valuable thing that you can have. Knowledge is what makes us have the ability to make more money. But, failure is often seen as a horrible thing for most people but the rich see it as an opportunity to grow and learn from mistakes. They might as well say that failure is their biggest reason for being rich.

Failure doesn’t indicate success, but all successful people fail a lot before they succeed

Success is something that can’t be achieved without any failure and that’s what the middle and poor people avoid. Because they are not taught to make mistakes but to make as little failure as possible. Go to college and get a job in a good company with good benefits and have a good life. But unless they are the ones who managed to have an office in the corner of the building, chances are they aren’t going to have enough for retirement.

Don’t Be Afraid Of Risk. Manage Them

Higher The Profit Higher The Risk. The rich know that not all of their investment is going to work and with any benefit comes a risk. That’s why they are not afraid of taking risks. The poor simply avoid any type of risk. Don’t become one of the poor. Instead, you must try to invest and have yourself an idea of the market, and make slow progress from there. Any mistake that you make is a lesson on how you must adjust your investment and with time you can build the disciple and habit of being aware of the market and come up with the best investment for yourself.

Rewire your knowledge with the latest fact

While your knowledge is important, what’s equally valuable is the fact of today. Don’t be a person who rejects all the newest information because facts of yesterday might be the same as facts of today. The founder of blackberry is an amazing individual and a very talented person but after his success with the blackberry company, he failed to adapt to the market and ignored any sign of changes. And then the multi-billion dollar company falls bankrupt. This doesn’t mean you should just abandon your knowledge but, update it every once in a while.

Thank you for reading so far. It’s an interesting topic, to say the least, and I have fun writing it. So which one are you? Rich or Poor? Put it on the comment section below, thanks.