How they invest or save money and how they don’t this is the basic difference between rich people and middle class. We often see that rich people are getting richer while the progress of poor people is static. Somehow you may also see the progress of middle class is very slow. The main thing which matter is how you deal with the money. When we take a look over their money dealing activities you may observe that all classes are totally different in this deal. It is observed that the people of rich section often use their money to work for them. While people of middle class doesn’t let their money to work but they save. They mainly use banks and other sources in which money is saved and the interest rate is low or minimum.
How rich people spend their money?
It is true that they also have liabilities but rather than this then are able to save money. They invest their money in buying the assets. Those assets which will benefits them more such as, property, house or even stocks. Asset goes up in value with change in time. For instance, if you had brought a piece of land then its value may twice within 5-10 years. This will be the best investment because no any investment is so fast with low risk of loss. Rich people invest their money only to buy those things which can benefit them in money-making. They again use that money to buy new assets and repeat the process to make more and more. Once it rolling it won’t stop. If you are able to save good money then you will be able to buy a luxury car and can fulfill your other dreams.
Rich people always have tendency to make money more and more.
However the middle class always want to save their earning and got satisfied. If you want to make your money working for you then invest it in proper way. When you invest then there is chance of risk. But this is also right that as much risk you take so much gain you will obtain. But remember we are not talking about superstar or celebrity. However there are many celebrities and stars those who have some side business and investment. Many celebrities invest in real estate and many have their hotels and restaurant all around the world. They have huge amount of money so they totally tension free to invest. So we are not talking about them. We are talking about the millionaire in your own society who was once like you.
They might don’t have luxury car or even don’t have beautiful house. But one thing they have always with them is the plan in the mind. He doesn’t have to worry about the money. Whenever they required it, they have already with them. However many people have luxury cars and big house. But in time of need they fail to have much penny. It can also be seen that they are making joke of them who don’t have big house but have good money.
Let us take the example of an American student. 2 students have pass out the college at a time. Both of them get job of $2500 per month. One of them they had brought a luxury car on loan and other has brought a home on loan. The 1st one will keep paying the rent of house and the car loan. While the second one has saved the rent and the same money is utilized for paying the installment of house. In this way he is able to make a property as well as able to save the rent. While the 2nd one was busy in paying the loans and house rent both. This makes burden on him.
Liability is a type of financial obligation in which you are compulsory to pay for it. So, if you want liability and you have to take then try to take that liability which may benefit you in future. Try to remove those which become burden in near future. Always try to buy those things which have actual need for you. A bigger house has a higher cost and also the maintenance cost of the house.
The writer is a financial writer In this article the writer has explained the difference between rich and poor and middle-class people and has given his opinion.