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Quick Lesson: What the Rich Does, and the Rest Don’t (part 1)
By Pehon | January 27, 2007
Many people around me always whine about how the rich seem to get richer, and the poor just stays poor. And when I’m talking about poor people, I don’t just mean families or individuals that make less than $20,000 a year.
First of all, what makes an individual wealthy? By the car they drive? House? Monthly expenditure? You’ve got to understand, even if you make $5000 a month, but you squander away all that money within that month on luxury stuff, you might appear wealthy, but in fact you are not. Here is why.
Most wealthy have the ability to put aside a large proportion of their income to investment. Most of us don’t. The wealthy have the ability to to that due to their large income. Many of us can’t due to our small pay check. And even when we get a raise, we would just increase our monthly expenditure, and that includes our year end bonuses.
“The rich get richer cause they know how to spend their bonus and pay raise, not on material gains, but in investments.”
