Many times before I wondered & get confused when I saw guys in his 30 along with their luxurious cars. It has been always mystery for me how they could afford such luxurious cars? How does those people develops the cash flow required to buy those luxurious cars? How is it possible for them by just saving money from their salary or business? Even if they do so, it will require large period of time... & lots of another questions. ...By analysis & careful observation I think I got most of my answers which I am going to share with you..!!!
(1) Poor or middle class people work for money while rich makes money work for them.
People generally follow only one conventional philosophy about money & is
"Get good grades in school, find secure & high
paying job & work hard for money"
& on other side rich make money work hard for them by applying their financial intelligence.
(2) Poor invest to increase their liabilities while rich invests to develop their assets.
Liabilities are the things which takes the money away from our pocket.
Assets are the things which put the money into our pocket.
(3) Pay your self first.
Poor & middle class people pays their expenses first & then pay whatever left for themselves which release their stress.
Rich pay themselves first which build pressure on them which acts as motivation & provide spark to their innate financial intelligence.
(4) Rich mind their own business while middle class keep working hard for government or organisation.
Middle class people work to get promotion & work hard for money.
On other side rich works to learn & how the things work.
(5) Middle class buy the luxury on credits or loans while rich first invest the money into assets & use the cash flow obtained from assets to buy any luxury.
So, basically there is not a large difference between the income of rich & middle class people.
Rich just spend it by applying proper financial intelligence while poor spend it without any!!!!
_ Shubham G. Rakshe.
" Rich Dad poor dad" by Robert Kiyosaki