why rich are getting richer | Millionaire Billionaire

why rich are getting richer ?

Before I give a very strong answer to this question. I would like to ask a question to the one reading this blog. Do you really think rich people are getting richer? Think about it for some time. 

now its my turn to give you answer to this question. 

No”, rich people are not getting richer. They are just smart enough to think richer. The simple formula they use to do this is investment. They just value time more than money and times gives them a reward of money. My answer may not be that appropriate to you, therefore I have collected all the information in one place. This blog will completely educate about the money game and the power of investment. 
So, stay tuned: 

First know about the strategies and methods rich people use to multiply their net worth. 

1. The rich getting richer :

“The rich get richer
Until the poor get educated”

The simple thing which I observe in people is that they have no knowledge about what money is. They do not know the power of money and the 8th wonder of the world, Compound Interest. Yes they are not taught well or rather I believe they do not want to learn. The only thing which rich people do correctly is INVESTMENT. They do not spend their money rather they love to invest that amount of money. 

Now you might be thinking that I save my money in banks. No doubt you are saving money. But believe me you are doing something correct but in a little wrong way. I suggest you invest you precious earned money in stocks. We will discuss about this point later in our article.

2. “Money speaks only one language, if you save me today I will save you tomorrow”

Yes you may not believe that rich people are addicted  to the habit of saving money. Let me share with you my own experience. When I was a young boy and I started earning money, I had a habit which is most common disease among all the youngsters. Its, “show off”. Literally telling you guys, I would have become “before 20 year millionaire” if I didn’t showed off at that time. But anyways, time is different now. I have learnt from my own failures as well as from failures of other people also. I have heard that most of the player or sportsperson who become rich become bankrupt very soon. Do you know why this happens? 

Yes the reason is show off. I have seen them flying in charted jets although they do not have lot of bank balance to do so. I have seen people buying costly iphones which is not at all in their budget. Do you know how they do so. Yes by loans ? They are making bank richer than themselves becoming richer. 

3. Rich people use debts to leverage investment and grow cash flow. 

“Rich people use debts to leverage investment and grow cash flow. Poor people use debts to buy things that makes rich people richer”- Grant Cardon

As I discussed in the earlier point. Rich people use the power of compound interest to gain money from banks while the poor people use the same bank to pay monthly as to clear their debt. 

These banks generally pay 3 to 4 percent of interest per annum basis. But it is also not less you can keep money in the bank so that when you need you can use them Immediately. While choosing a bank you should be knowing everything about that bank. I generally see that if the bank has good history or not. You can also take feedbacks from people. Because some private or even governmental banks do not work well and they are not much advance to tackle big deals. I am not saying that all the banks are like that but I am just telling you to be careful because you have earned this money.   

4. Income distribution (several sources of income)

Do you know that an average millionaire has seven sources of income? Yes it is very true and has been proved in several researches. 

“You are never too young to start an empire, never too old to chase a dream”

Whenever I meet people who are elder than me and are financially struggling I just wonder and ask myself only one simple question. “Why they are so negative and what is the reason they are not successful?” and the simple answer which I get is that they do not have the courage to do anything of big significance. 

They do not believe in themselves and are not ready to take risks. They just feel so good in that old bad shit*y condition. 

“If the Egyptions built pyramids without machines, you can build an empire without Excuses.”

5. Invest a good chunk of earning.

Yes I will specially elaborate this point, I am rich because I have a good knowledge about stock market. I am confident to tell you this. I made my first income, I mean a good income through stocks. Now some people will tell you that stock market is a kind of gambling your money. But you should know the fact that it is not at all gambling. It is just a business. The person who understands business and if he/she is interested in doing business can easily make a good money through stocks. The ace investor Warren Buffet is rich by investing in the stock market. I take him as my great inspiration because I have learnt a lot from him and just follow his reading habits. It has changed my life.

People say that stocks are casino but the chances of winning are more in this game. I have made my money through stocks not lost my money. Although in the beginning I lost my money but in the long run I never gave up.. I have made it very sure that it motivates me to make more money. 

I used to teach my friends during my high school days , “What is stock market and how to start a business?” today my same friends earn a lot of money and have big businesses. They thank me for what I have taught them. they were the same guys who used to hate the rich people. But now I have transformed them to think like a millionaire. One of my friends has expected to join the millionaire club by 31st of December 2019. And I felt as if I am getting those money. It was a great for me to hear this. 

6. Focus on providing value and making profit.

Yes the next thing which is not only important for making money but also very much important in order to make a good marketing. This is the only thing which will let you survive the competition. The more you provide value in your products the more you will earn. 

“Its not about selling, Its about creating value for your audience”

Because there is nothing more beautiful than someone who goes out of their way to make life beautiful for others.

Lets talk about why poor is getting poorer?

The simple answer to this question is just because they don’t want to get rich. 

1. One source of income (work and get money.)

They don’t want to work little more. When I was researching on this topic I came to a simple conclusion that they have the habit of procrastinating. They just want a lazy and lethargic life. With no great work to do. They fail to become rich because they have only one source of income. And as I told you earlier, “An average millionaire has seven sources of income

One source of income is like a falling knife. It can kill you at anytime. If one source goes you will be of nowhere. “Never keep all your eggs in one basket.” I will suggest you to at least generate a passive income, which will make money for you even while you sleep. 

“Rich people do not work for money, they make money work for them.”

2. Spending on liabilities.

Buy Assets, not Liabilities” - Warren Buffet

I prefer to buy gold rather than a car. Yes, do you know why? Because gold can make more money in the long run. In 2008 the gold price was 12 times lesser than the cost of gold today. So if you would have invested $500 in the year 2008 it would have been $6000 today. Isn’t it wonderful. This is what I want to teach the poor mentality people. Learn to invest in good things which will multiply your money in some years. I always follow 20/80 rule. I save 80% of my income and then I spend only 20% of my income. And then again I save  whatever is left after spending. This is rich mentality. You don’t need to have a million buck in order to call yourself a millionaire. You just need to have a millionaire mentality to become a rich guy. 

3. Focus on making money instantly.

Rich people usually have a long term goal. The richest man in the world Jeff Bezos is famous for having the long term goal and this is the reason why he is even richer than Bill Gates. He use certain prime program and affiliate program in order to become rich and successful. 

Poor people just go for short term goal which will only give them some living. They won’t be able to generate big wealth. They buy expensive watches, mobiles, laptops, cars, houses etc in order to just do one thing and that is Show-off. This will never lead them ahead in life I bet you. 

4. They do not have the time to learn about money.

First of all they do not have any knowledge about the power of money. Although they always struggle with money only. If you give them $1000 it will not take even 2 day to finish that money. 

Whereas if I get $1000 I will divide it in 10 parts each of $100. I will buy stocks, assets, gold bonds, mutual funds, silver, bitcoin etc etc many more. 

Do, you see the difference. Yes it is clear that the mentality is poor not the people.