Many think there are too much difference between rich, poor people, but the only difference is one idea and the way of thinking that the rich people follow, but other two do not and that is what makes all the differences.
You must know that most of the rich people at some point of time were poor, but now they are rich. If they can achieve it, why you can't, what makes you back from them? Actually it’s so simple idea and way of thinking, but so important that when you finally understand it, will change your life forever.
We are going to open your eyes and show you exactly what we mean so that you can find out how rich people become rich, the poor people get more poorer, and the middle class hang in their own class. It’s not about what rich people do, but what they think and what they buy, the things only rich people buy.
Most of the time, poor and middle-class people get confused between business and work and always afraid to invest and go after to find daily job. But, they forget the fact that a job is never a path to be wealthy. How much you become successful in a job even as a doctor or as an engineer, you can never beat the richest person in the world who take a risk to do their own businesses. Richer people are never afraid to take a risk and never step back to do hard work. Most of the rich people are found to be sleeping only 5 hours or even lesser during their struggle period and doing work rest of the time. Many rich people have given up all of their enjoyment just to focus on their work until they reach their goal.
Middle class and poor people always take work as a troublesome and just try to complete their task as early as they can so that they can enjoy afterwards. They only see the lavishness of rich people, but they don't bother to find out how those rich people gain success. They only see rich peoples' today, filled with full of gratification, but they don't see their struggling days when they didn't have any time for their own life or for any enjoyment and they used to do only work all the time to improve their earnings except sleep, eat and well, you know.
Most of the rich people are found to be dedicated almost 10 years of their life completely in work by giving up every joy to achieve what they have right now. But, the poor and middle class always think they need to enjoy or live life for an instant, after all, it is an onetime life we all have. OK, here we don't mean to say don't live your life however you want, you can surely do that, but the point is if you can't dedicate in your work especially to improve your own business or earnings, then never expect that you are going to be rich ever that way.
Yep, we know that poor people will say that they even don't have money to eat, how they can invest in the business. True but remember that it is not necessary the business should be of high class. Don't forget the fact that one of the top richest men in the world “Warren Buffet” started his career selling soft drinks and had a paper route and saved that money to develop his own business. We also don't mean everyone can be Warren Buffet, but you can definitely achieve the dream life if you are ready to focus on your own business and ready to give full dedication and have the patience for that. If you are poor, don't have anything, even you don't have enough money for your meal, then also still you can start your own business because God has given you a hand to work and a mind to think. You can just take mud, make something, and sell it on the road and make some money. This is just an example to start a business without a penny, there are other multiple ways to do such things for which don't need money. Once you start generating money, you can use that to invest in something very useful which can help you to multiply your earnings. But where to invest, right? OK, let's talk about it now.
Now here comes the fact what should you buy, what is the thing that rich people buy to be rich, but neither poor nor middle class.
OK, before we explain you about that, we want to give you a few definitions of four important words which you think you know, but in reality, you are still misunderstanding and those words are:
- Income (which means the money you bring in)
- Expense (which means the money you spend)
These two words are used by the rich, poor, and middle class, but it’s these next two words that will blow your mind:
- Liabilities (something that costs you)
- Assets (something that pays you)
We are sure that you may be thinking that asset is something that you own, like a house, a car, gold or shares, and so on, right?
But the rich people have a different definition of an asset and that is:-
“Something that pays you”
Usually, people call their house an asset, and if you ask an accountant, they’ll also tell you it is, but if you use the above-mentioned definitions, it can also be a liability because a house that you own but living in will costs you money to maintain, furnish, renovate, pay tax and so on, so it’s a liability.
But, a house that you rent/lease to other people which can make money more than its maintenance and tax cost, then it is definitely an asset.
So, here is the quick short definition of these four words:
- Income: Money you make
- Expense: Money you spend
- Liability: Costs you money
- Asset: Pays you money
There is a simple idea that separated the rich, poor, and middle class, and it’s all wrapped up in what they do with their money when they have it.
The Poor
We know that it is very difficult to make money for poor people in the first place and even to manage the daily appetite and needs of life. Though if they get money from somewhere, they are just willing to buy a bunch of stuff that they can found for cheap maybe at a flea market, garage sale, dollar store and so on, such as they buy shoes, Sprite, chocolates, clothes, TVs, games, and so on which they are dreaming to purchase when they don't have money and was struggling to manage the expenses for their daily meal.
But, they forget the fact that instead of buying those luxury items, if they have ever used even $1 on something where they can multiply money, they can be richer day by day.
Even some poor people just work on a daily basis and even not eat, but when they get money, spend on drinking alcohol. They never think that by skipping a meal or something unnecessary will help them in saving their money. They have no idea that even saving $1 and using that in the place where they have some chances to multiple the money will always help them to improve their life.
You are born poor, that is not your fault. But, if you die poor, then you must blame yourself.
Actually most of us are grown with a concept of either spending or saving money and saving money to spend, to buy something big, but not to invest in something where it can multiply. This isn’t a character flaw nor the wrong, it’s only that the poor get stuck on a terrible cycle called poverty for whole life and it is very complicated to escape from that cycle.
Creating wealth is not a big secret, it’s a recipe. The only reason someone doesn’t create wealth is because they don’t know the recipe, don’t want to know the recipe, or never use the recipe.
OK, now let’s talk about the middle class.
The Middle Class
Some people in the middle class who earn less than $1000 per month, only think they are middle class or rich, but in reality, they are also poor and for them applies the same things that we have mentioned about poor people as above.
On the other hand, there are some middle-class people who think that they are rich, because they are making a good salary from a good job, or they are earning good by their own businesses, but what they buy with that money still keeps them stuck in the middle class. Actually, most of the middle class buy liabilities.
Remember what we have said before, a liability is something that costs you.
The middle class buys liabilities thinking those are assets such as they buy big houses, nice cars, and so on. OK, buying a house is an asset only if you keep on buying and selling it to multiply your earnings or give it in rent or lease to generate income. Otherwise, if you buy a house to live in, then that is not an asset but it is a liability because to maintain that house you need to pay money. More than that, most of the middle classes purchase those houses, cars on credit that they pay every month. OK, they think the value of house will increase in the future, but what they forget here is that will matter only if they are selling that house later and they can make money more than what they have paid including tax, credits repayment, maintenance, and everything, otherwise that can't be called as an asset.
The higher middle class doesn't stop there, each month they keep on buying new things in order to show their lavish lifestyle and classy status in front of their friends and families so that their relatives and friends think they are rich, which in reality they are not. For example, let’s say someone in the higher middle class makes $1000 to $5,000 a month. They pay their monthly expenses like the mortgages or rent on a fancy apartment and food and lifestyle with $5000 and at the end of the month, they remain empty hand.
But, still, they don't afraid to increase the credit to buy luxury items, but only afraid to invest in something which generates money. After a while, their monthly debts catch up to their monthly income, and then they get trapped by the very things they bought to make them happy.
Now, they are stressed out because they have to make more money next year for the kids' schools, or the next vacation, or whatever. And they put those liabilities on credit and get more trapped.
The poor and the middle class get trapped because they also get into a situation where the only way they make money is by trading their time for it. Either their body or their knowledge gets traded for the money they make, and there are only 24 hours in a day. Often these people end up being workaholics, waking up just to go to work, and pay bills.
So, even if you can make a lot of money, you will still be a poor person, because of how you spend it.
The Rich
Aforementioned, here’s the critical difference for the rich people.
Instead of buying stuff and liabilities, the rich people buy real assets that help them to multiply their money.
Assets (something that pays you)
These assets pay them money, which they use to buy more assets which makes them more money. And in the end, those assets even start to make money for them when they are sleeping.
Now maybe you are thinking we are talking about assets such as:
Stocks
Bonds
Real estate and so on
So, you may be thinking we are talking about investing. Nope, we are not.
OK first of all we want to ask you what is an investment?
Yep, we know, most of the people think the investment is something which you buy so that its value will rise and you will get a good return out of it, right?
Nope, you are wrong.
That is not an investment, that is trading, gambling and that is what poor and middle-class people think investing is, but they are wrong.
Often rich people have a different meaning of investment. Well, then what is that?
Like we have said before, rich people buy assets. Instead of buying something that you hope goes up in value after time goes by, the rich buy assets that pay them now. Yep, right now.
Yep, rich people also buy stocks, but they buy those stocks which pay them dividends now, not those which they think will go up in value in the future. So, those stocks will pay them money every month. They buy bonds that pay them every month, they buy real estate properties that pay them every month, means the real estate which can be rented or leased, not a house to live in hoping its value will rise in coming ten years, but a house that you can rent now to the people who pay you every month. Well, that doesn't mean rich people don't buy a house to live in, they certainly do, but they buy only after managing their investment portfolio, not like middle-class people who purchase houses on credit before they actually have real money.
Focused education can be considered as an asset
We are not talking about the education that you obtain in colleges or schools, but about the education which actually helps you to make money as soon you complete the education, it means gaining knowledge of dynamic ways to make money.
Education also can be considered as an asset if you can materialize your learning in how to do something to generate money, a focused education, or course of study to make money directly after acquiring it. There’s an old saying “If you think education is expensive, you should see how expensive ignorance is”. But where the rich really make the difference is when they buy or create an asset and that is a business. Especially a business that can create a passive income which we can create only by learning with our own experience or by acquiring focused education and that kind of education can be considered as an asset.
When you can build up a business which pays you even after you stop working in it, then you have a true asset.
It’s what the real wealthy people are doing, and it doesn’t have to be some multi-national companies.
There is no use of having tons of businesses and staff if they can't make a profit. Having a single small business that makes remarkable returns in terms of profit monthly without having any credit is much better than having a multi-millionaire company with a huge profit, but backed with heavy loans.
You can take an example of the founder of this website, "Suman Roka". Years ago he came across these ideas when he was doing multiple businesses, such as interior and construction companies, engineering consultancy, property valuation for the bank, trading of Chinese goods to other countries, ATM lounge management, machine-made brick factory and so on. But, all of those businesses he did by taking a loan. So, despite the fact that he made a good profit out of his businesses, the majority of his profits went to the bank for loan repayment. On the other hand, if he stopped working on those businesses, then he couldn't make a profit. So, even he was doing business, he felt like he was doing a job.
Later on, someone shared these ideas with him which we have mentioned in this post. Then he decided to find the ways to start such business which can make him money even when he is sleeping and for which he doesn't have to take any loan, for which at starting he may need to do hard work, but which will later keep on paying for his lifetime. Then he found out the online world has much more potential to do business without taking any loan which can make money while sleeping as well, with very low investments. So, he started to do the multiple online businesses, and finally, he landed in Wealthy Affiliate where he learned every possible expert way to make money online and that is also by following his own passion, his own subject of interest.
After he followed every lesson of Wealthy Affiliate, he made his own website which is the current one you are viewing at the moment and now he is making money even when he sleeps because he can earn money from the advertisements that are shown in this website, for which he doesn't need to wait to deal with visitors. He can make money when someone joins some recommended companies through his website, for which he doesn't have to wait for the clients. So, these business activities happen continuously, even when he sleeps. He also made other websites from which he is earning very good passive income from advertisements and also by selling various goods from Amazon. All of these online business tactics he learned from Wealthy Affiliate. If you don't know what is Wealthy Affiliate, then you can click this link:- newsonlineincome.com/wealthy-affiliate-review/
Now things are entirely different.
He spends his time doing what he wants to do, making a website in his own subject of interest, and involving in businesses of his own choice, of his own passion to build up a passive income business online.
At last, he learned there are various kinds of online businesses that can be considered as assets. He said for him Wealthy Affiliate is an educational asset, a passive income business asset that helped him a lot to make money.
He then took some of the money that he made from those assets, and bought more assets, so that he can learn more and take more effectual actions to multiply his earnings. He started telling people about what he had learned by the means of this website, but he found that most of the people can't understand any of this stuff unless they are looking for a solution, they are open to hearing one, and feel excited about the idea.
Earlier, he used to spend all of his money and time on stupid stuff, such as he did businesses, but with lots of loan burden, he bought car, decorated his home all by taking loans. But, now he realizes what is the main asset and how to multiply the earnings. So, now he is one of the successful renowned businessman especially in the online business industry.
Once again remember:
- The poor buy stuff
- The middle class buy liabilities
- The wealthy buy assets
Prefer such businesses (assets) that pay you money, then invest that money to buy another asset which produces more money. That’s the recipe for wealth.
Multiply your asset and multiply your money.
But, still many people don't understand it or don't want to understand it. For example, when we recommend someone to join our No.1 recommended online work company where they can learn the best online business skills to make money online for their lifetime and tell them they can try it free of cost, then most of them ask us, "can they earn money from there without paying any money?"
Poor are ready to use their hard-earned money to buy the stuff, the middle class is ready to take a loan to buy a car or house to show off their status, but they are not ready to skip something luxury to manage the very affordable fee that they need to pay to the companies like Wealthy Affiliate where they can multiply their money by learning the expert business skills which will help them to generate additional income and even a full-time income in coming days.
But, those who understand nothing comes free and they need to pay money if there is some good opportunity where they can multiply their money, those kinds of people just upgrade in Wealthy Affiliate and those who did, at least now they have made very decent income although they haven't become rich yet, they generate money from money and now they are using those earnings to multiply more so that they can be rich one day. Some members of Wealthy Affiliate is even earning $50,000+ per month just by spending $495 per year fee or $49 monthly fee. So, although that is not the amount to be the rich people in the world, but we are sure that is the amount which can make everyone's life better, right?
We are not saying you should join Wealthy Affiliate, there are other lots of ways to make money, online or offline. If you are interested to make money online, you can find several ways to make money online as listed within our this page:- newsonlineincome.com/legitimate-work-home-businesses/
However, if you are interested to find out more detail on Wealthy Affiliate and want to find the link to join it, then you can click this link:- newsonlineincome.com/wealthy-affiliate-review/
Anyway, remember, you can increase your earnings by only using your money in the platform where you can multiply your earnings, not by spending that in luxury items.
Note:- You may get some of this information from the book Rich Dad, Poor Dad, and also some stuff from Tim Sales and video by Bones Rodriguez, but there are still lots of original content within this post which we have shared from our own experience.
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