Why do Rich People get Rich?

Let us start Answering this Question

Many of us had asked ourselves this question, at least, on time before.

This not the issue, the issue is how do we answer this question? Answering this question the wrong way can highly affects our financial future. The right answer could change our mind & support us to be rich like them; while the wrong answer could spoil our mind & keep us struggle, financially, like we do.

As an accountant with ten years experience, I think that the answer is not simple as we think. The answer is more complicated & the factors, which play role, are various.

Give me a chance to share with you what I think on the topic, trying to help you to answer the question, or at least, we think together.

So, below, I will mention the characteristics, behaviors & skills that rich people had to be able to create their wealth or increase it.

You Can be Rich

Source

Do you think that you are a long-term Planner?

  • Yes, Mostly.
  • Sometimes.
  • I am trying to ignore some short-term needs.
  • No, I want to live today, let us see tomorrow.
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They care about the penny, & they believe it counts

Many people have really started from zero, it is not a joke or a dream. They work for employer & save from their salaries penny plus penny, then they start a small investment. In the book “Rich dad Poor Dad” written by Robert T. Kiyosaki, he mentioned a real story how he helped one of his friends to start an investment from $7900 to be $330.000 after about five years.

So rich people believe that every penny counts, and they take care about their pennies.

The Rich People is long-term Planers

You will find a rich man purchase a land very far from the city for a very cheap price, everyone will say: "What a crazy man, who will care about this land, it has no future, he throw his money carelessly". All the people who speak are right if we look for one to two years, but the rich man look ahead 10 or15 years. I heard many stories & see many people sell lands for 20 double in price or more.

How do they dare to purchase the land? This is a big question, but I will tell you the answer. The rich man will find a trusted information source who informs him, for example, about the government future long-term projects. The government tends to invest some hundred millions or billions to build a new industrial city here or there.

Easily, he cross check the precious information and go ahead to purchase the land, then he will forget it, LOL, I mean he will not think about the price of market, or maybe he will do, occasionally. Actually, he knows that he will not sell it near; it is a long-term investment.

In addition, the rich people do think about the expanded future, not like salary earner who cares, maximum, about the next month until he gets the next salary.

Success is a Step by Step Process

Source

The Rich People do not play it safe; they are brave hearted.

They take the risk, they know that the loss is possible & they accept the game, they do not think as the poor do, “let me play it safe”. It is known for everybody that the more risk you take the more income or profits you could generate, in other words, more risky investment has high return on investment.

They lose and they accept to lose some of their money, but they earn huge some times, so they cover their losses. They are not going to spend the only money they have on LCD TV and say let me get some pleasure better than losing my money. I can not afford to lose, or I hate to lose.

Success Worth

Source

They like to let the money works for them; they do not work for it.

They like when they purchase two small homes, one to live & another to lease. Like that they generate an income, instead of running day & night to by high cost mortgages for a big home, which they, actually, do not afford. They do not spoil their life to purchase something they can not pay for it.

They are financially educated

We think that if someone do not graduated from a college, s/he can not be a successful businessman. Actually, they care about business more that some PhDs, their fathers take them to offices when they are, still, teenagers. They listen to their father/ or mothers negotiate, giving orders, analyzing, discussing with an accountants, lawyers & consultants. They know many things from a real world. Another thing, when they do not know, or facing problems, they pay sufficient amounts to the consultants to guide them.

Do you agree with me?

  • Yes.
  • No, at all.
  • Some points are ok, and I will tell you my point of view on others.
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8 comments

SidKemp profile image

SidKemp 3 years ago from Boca Raton, Florida (near Miami and Palm Beach)

I agree overall, and especially on the last point: The rich are educated on how to get rich. I put it simply:

1. Rich people know how to get rich.

2. Rich people want to get rich.

3. Rich people use their wealth and power to get rich.

4. Rich people can afford to take risks that people without wealth cannot afford to take.

I write about #4 in my hub Retirement Savings 101. May I link to this hub from there or one of my related hubs?


Taleb80 profile image

Taleb80 3 years ago Author

Sidkemp

Thank you for your useful addition, happy you will link my hub to yours.


d.william profile image

d.william 3 years ago from Somewhere in the south

Great article but it cannot apply to everyone. I have come to the conclusion that wealth was not meant for everyone to have. This is not a negative thing though. People like me who spent a lifetime helping other people (in the medical professions) will never be rich, but satisfaction is sometimes worth more than money.

When you have a job, or profession that you truly enjoy, the pleasure we derive from our job performances outweigh the dream of ever becoming independently wealthy.

When our lives come to an end, we will not be judged by how much money we accumulated, but by the good we have done for others.

Wealthy people live in a totally different world than the ordinary folks, they are mostly self serving and their values are more materialistic than the rest of us.


Taleb80 profile image

Taleb80 3 years ago Author

@d.william I agree with you. I want to declare here that rich people, mostly, work hardly & smartly to get the wealth. I think we should not just say that they are greedy & ....

They are playing a good rule for boosting the economy by finding new jobs by the innovative minds & courage hearts they have.

I hope you will not think that I am reach, I, just, want everybody to appreciate the others' role in life.

Thanks for stopping by & commenting.


d.william profile image

d.william 3 years ago from Somewhere in the south

I certainly did not mean to imply that all wealthy people are crooked or evil or do not contribute something back to society.

But one has to admit that their (the wealthy) mindset is certainly different than people who work for a living wage that pays for their living expenses while maintaining a home and a family.

Not everyone is meant to be wealthy (big bank accounts). Most average people struggle through life just to make ends meet.

The majority of people do not have that 'extra' cash to invest, speculate, or take the chance on losing their life savings, etc...; but most importantly most people also have had no training or education in wealth building and would not even know how to begin that process. Not being wealthy does not equate to being lazy or stupid either. And i do not believe that the majority of average citizens view the wealthy with envy or jealousy. We are what we are meant to be.


Taleb80 profile image

Taleb80 3 years ago Author

@d.william Actually, I understood your point of view. It was very clear & I agree with you. What I tried to say is "what was the purpose of writing this hub".

Thank you so much for the useful feedback which you have submitted through your comments.


DDE profile image

DDE 2 years ago from Dubrovnik, Croatia

Why do Rich People get Rich? great hub with useful information


Hackslap profile image

Hackslap 2 years ago from Sydney, Australia

I wholeheartedly agree with this hub ..there's one more thing I'd like to point out .. and that is rich people are mentally wired into thinking positive things about money ... i.e. the 'wealthy mindset' as pointed out by d.william above ..

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