Why do the rich get richer? It’s a question often asked and it’s a very good question but perhaps a more useful question would be: why do the poor and the middle class continue to have money problems?
The answer to this question lies in the title.
Do you know the answer? One of the reasons why the poor and the middle class continue to have monetary problems is because they work for money and for a salary.
If you have attended my classes and have read my books this concept is not new because I repeat it very often, and I do it because is essential. It is the true conceptual leap to start creating your financial freedom.
The rich build their homes, while the poor and the middle class build the houses for their bosses
The problem of working for a salary is that you have to work harder, longer hours or have pay increases to have more money. But there is only a limited number of hours in the day and, especially these days, it is hard to get a pay rise.
The rich get richer because they constantly work to build or acquire more businesses.
I will remind you that – as I explain in my video course Money Makes You Happy – assets are all the things you own and that generate positive cash flow: rental apartments, business, websites, products, and royalties.
Money Makes You Happy, is a video course to learn the strategies of wealth and gain financial freedom.
Do you understand the big difference? In the case of the poor and middle class, they work for a salary but there is a limit to the hours in a day, physical and mental capabilities and market constraints.
On the other hand the rich work on assets. They work constantly to add new revenue sources which add to other ones. Imagine if every month you go to work and you add a new salary.
Yes, because it is not about working harder. A business owner does not work less, but loves to work. He likes to work because he sees that his work build his house and his assets.
Imagine two builders, one works all day as an employee to build the houses of his clients. The other works to build his own house. Who do you think gets the most pleasure from their work?
What goals do the rich have?
From the above it is obvious that the objectives of the rich are not a salary increase, vacation time or keeping their job.
The objectives of the rich are related to adding assets to their possessions.
All rich people clearly define their objectives and you must learn to do it too. I have written an article on this topic.
As you can see there is no competition, the rich system wins above that of the poor and the middle class.
How do the rich continually create new activities? Here lies the essence of financial freedom, I believe.
Rich people constantly face and solve new problems. This leads them to increase their store of knowledge, broaden their minds and their financial education.
The bigger the problems you solve, the more the world will reward you with money. I will give you an example.
If you go to an agency to buy a house and choose from their listings, maybe you will find the home of your dreams, but you will not be building a business. If you start studying the newspaper, get around the city, and participate in auctions, then you will likely find a deal.
In the first case, you have not solved any problems: you went to an agency, went to the bank, took out a mortgage … and you are a prisoner for the rest of your life.
In the second case, you have solved many problems: you have searched for a property with certain characteristics, you found it, you maybe renovated a little, you have convinced a bank to lend you money, and you have purchased a property that, if it is sold, will generate you money.
Another example? You go to work, someone tells you what to do, you do it and at the end of the month, you receive your salary.
On the other hand, are you someone who creates work – maybe attends my seminars at the School of Business – decide what things to do and guide other people to do them? Then at the end of the month or year you gain 10, 100, 1000 times more than by being an employee.
Money Makes You Happy, is the video course to get you off the hamster wheel and gain financial freedom
Moral: the rich get richer because they constantly create activities that are increasing their cash flow, and creating activities solve problems for other people and for that the market rewards them.
The other people are the poor and the middle class, who work for the rich for the salary at the end of the month.
Who do you want to be?
To the next appointment with your financial freedom,