Why The Rich Get Rich and You Don’t
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Have you ever wondered how some people become incredibly wealthy while most of us will live our entire lives in a state of financial mediocrity? It’s as if these rare individuals have some sort of a superpower or cheat code that the rest of us lack. Well, this is kind of the case. Wealthy individuals make particular money moves and know key pieces of information that help them see exponential progress in their financial lives and from my observations, here are the five actions they take to set themselves apart from the rest!
Number 1: The rich move money while others let it sit
You may have never realized this before but your money is a lot like your girlfriend. Just like you love your money, you also love your girlfriend. However, if you’ve ever neglected your girlfriend before, chances are you know that if you ignore her for too long, she’s going to get up and leave. Well, the same goes for your money and the rich are acutely aware of this fact. Now, what do I mean when I say that your money will get up and leave? Good question!
Money most commonly sits idle in the bank and if you’ve checked what saving account interest rates are these days, you won’t be impressed. Right now, putting your money into a savings account will give you a yield of around 0.04%. Assuming you have $200,000 in the bank, which is more than most people have, you would earn a whopping $80 of interest. In all honesty, that’s probably more than you’re paying in banking fees alone! Plus, when you add on that inflation typically hovers around 2%, this means that you’re actually losing money by neglecting your money in this way.
Sadly, many people remain ignorant of this fact for years and as such never give their money an opportunity to grow. The rich on the other hand, become well aware of the perils of saving towards financial freedom early on in their wealth building journey and instead move their money around in productive ways.
For example, some financially savvy people will use their disposable income to start a business. Sure, there are risks that come with taking on an endeavour like this but as I already mentioned, putting money in the bank comes with it’s own set of risks so really you may as well put that cash into a project that could yield…
