The rich get richer as the poor continuously lose wealth. Wealthy folks have tons of tricks up their sleeves for building and maintaining a substantial net worth, and although some aren’t possible for ordinary folk, many are.
Here’s the truth about how the rich get richer – as you see, you can use some methods to build your nest egg!
Investing
Investing is the simplest path to building wealth; almost anyone can do it. The adage that it takes money to make money is more accurate than ever, but anyone can invest in index funds with just a few dollars a month.
Ownership
Hard work doesn’t make wealth; ownership does. Owning a company, a home, stock investments, fine art, and other assets helps the rich maintain their wealth.
Ignore Lifestyle Creep
The rich don’t care about buying more junk. They don’t let a few more dollars in their pocket go to waste on material things.
Not Keeping Appearances
The old meme showing the new rich guy in glitzy clothing compared to the old rich guy in jeans and a tee shirt speaks a little truth.
Rich people stay rich because they don’t spend money trying to show off their wealth.
Inheritance
We can’t ignore that many of the wealthiest among us inherit their wealth. Some families come from old money, allowing their kids to live life on easy street.
Generational Wealth
Many people ignore that generational wealth is far more than cash. Many new rich became that way through parental help, but that doesn’t mean they were gifted hordes of money. Some got help with education, while others had a home to live in while building their business.
You may not become wealthy in this lifetime, but if you start now, you can build a solid foundation for your children.
Education
A college education in an in-demand field is a sure-fire way to build financial security. Doctors, lawyers, engineers, programmers, and other professionals make enough money to invest and build wealth.
Spend Less than You Earn
People who grow wealth live within their means. The sacrifice wants to save for the future. Some live on rice and beans even if they can afford steak because they know building financial security is more important than dinner.
A Little Luck
For every Mark Zuckerberg, thousands of people had a spectacular idea that never gained traction. Being in the right place at the right time often helps.
Innovation
The new rich are primarily innovators. They have fantastic ideas and the skills to implement them. They create new platforms, devices, and ways of doing things and make tons of money for these ideas.
Start Their Own Business
Business owners tend to have more wealth than laborers. Being your own boss catapults you from the working class to the ownership class. It’s actually easier than most people think, especially in today’s interconnected world.
People start businesses in consulting, coaching, skilled trades, content creation, and numerous other endeavors that allow them to build wealth on their schedules.
Family Planning
Kids are expensive. Rich people know that and put off having children until they have the means to care for them. They also limit their family sizes to ensure there’s enough to go around.
Of course, that’s not blaming low-income people for having children they can’t afford. Society pushes parenthood on people from a young age in all sorts of forms, from messages that parenthood is a must to laws preventing family planning. The rich can circumvent these laws in ways that are out of reach to the poor.
Financial Planning
Rich people make plans for their money well before they even make it. To join their ranks, you need to stop living in the moment and start thinking ahead.
Start here: How To Make a Financial Plan