Passive Income Review
In recent years, several experts started analyzing the ways rich people think and have made an interesting discovery. Wealthy people think about money in a different way than those in the middle class do. Generally speaking, rich people believe in the possibilities and abundance of money while those in the middle class are concerned about the future, aiming to protect their money. The differences in money-related thought patterns mean that by simply changing your thoughts about money, you can slowly begin to change your life and become wealthier.
Focus on Earning
The average person thinks about ways to protect the money that he or she already has. The wealthy, on the other hand, will focus on earning money. They continue to save money where possible, but the rich make it a priority to come up with new methods of earning an income to increase their savings. By beginning to consider ways to increase your income, you can take steps toward a life without money-related stress.
How the Rich Get Richer and the Poor Get Poorer
Economists seem to constantly make the statement that the rich get richer while the poor get poorer. Numerous recent studies verify this finding. Experts agree that following the economic crash in 2008 and 2009, the rich have managed to make a significant recovery while the poor were unable to do the same and have instead gotten poorer. There is no single explanation for this phenomenon, as multiple factors are at play in the increasing wealth gap. The trend remains, however, that the rich get richer, the poor get poorer, and the middle class tends to remain the same.
One of the ways in which the poor become more financially disadvantaged is through their stagnant income. The minimum wage has increased slowly throughout the years while inflation grows at a quicker rate. This means that the poor who rely on minimum wage jobs have the same income as before while being expected to pay more money for necessities, such as food and shelter. The current minimum wage has remained the same since 2009, providing a decrease in value for the poor. This stagnant income provides a decreased access to resources and no opportunity to grow rich or save money while earning minimum wage. To compound the issue, successful businesses do not evenly distribute the wealth among employees. Typically, the executives will see salary increases as companies grow while lower-level employees continue to make a figure close to minimum wage.
Financial Assistance Available
Due to their financial resources, the rich have access to better financial assistance than the poor. Those with a low income must rely on free programs and advice to make investments in addition for everyday financial decisions and budgeting. The rich, however, are able to pay for advice from top consultants and economic experts. This allows them to receive financial assistance from professionals who have studied the economy and investments for decades, giving access to techniques that have been tested.
Access to Better Education
In addition to a monetary gap, there is an educational gap. As the cost of attending university rises, fewer poor people are able to attend. This loss of education limits their employment opportunities as well as their awareness of various financial advice. While it is possible to get richer without an education, this is a rare phenomenon, meaning that only those who are able to afford a higher education will have opportunities to increase their earnings to a significant degree.
The Availability of Savings
The lack of savings mentioned above also plays a significant role in the ability of the poor to get rich. Money is almost always required to make more money, and it is impossible to make investments in stocks, bonds, or other financial commodities without savings. The rich are able to invest a large quantity of money or simply place it in an account where it earns interest, allowing their savings to grow every year. As the poor cannot begin to save money, they do not have these investment or interest-growing opportunities, preventing their financial growth.