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