Why do the poor stay poor and the rich become richer?

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Have you ever asked yourself, why are poor people poor? Why do poor people continue to be poor?

So by the end of this article you will discover the reason why poor people are poor and what to do to move out of poverty

Why do the rich people become richer and poor people continue to become poor?

Do you know that being poor is a choice?

There are many factors behind why you’re poor and some include: Your daily habits determine whether you will become poor or rich, choices, spending habits, money management, etc 

So now let’s look at why poor people are poor and rich people richer

  • Poor people have a poor mindset

Your mindset plays a very significant role towards becoming rich or poor, how do you perceive life? What attitude do you have about money? What perceptions do you have?

Poor people believe that money is the root cause of all evil, this is why they are poor, you can’t get something which you hate, poor people say this because they are justifying their reasons for being poor

Why poor people have I can’t afford mentality, rich people are concentrating on how I can afford to get what I want in future

You need to change your attitude you have towards money,

The way how you think determines whether you will be poor or not, develop a rich mindset and money will come to you, believe in yourself, you can achieve whatever you want in life if you believe in yourself

  • Poor people trade their time for money

By trading your time for money, there is a cap on the amount of money you can ever make, to build wealth you need to start your own business

Money is solving problems, look at what problems your society is facing, does the problem affect a large number of people? If yes, this is the best business idea to start

Start a business that solves a given problem, never make a business for the purpose of making money, making money is a bi product of the problem you solve

Rich people know that time is very valuable; this is why they hire poor people to make profits for them

If you want to become rich, use your day job to start a business that will bring positive returns

By starting your own business, you have total control over the profits the company makes or you have to choose whom to hire or fire

  • Poor people follow the majority rich people do minority things

If you want to be rich, you need to do things differently from what the majority of people are doing,

If you things that made people poor, don’t do them, if you do the same you will get the same results, learn from what the rich people are doing and move with that

You need to change your attitude, mindset and behaviors, think like the rich person

Meet people who are productive, you need to learn how to create your own wealth

All you need is to believe in yourself, you can achieve whatever you want in life

  • Get a high paying skill

You will earn money according to the perceived value you offer in the market, if your skill is not valuable, you will make less money

If you offer much value, the market will reward you with more money,

So what is your perceived value?                                                          

The truth is that you will be paid according to your perceived value, cleaners work hard compared to accountants but earn less money because their perceived value is very low compared to accountants and engineers

So before joining any profession, you need to ask yourself, how is the competition? How much do they earn? How difficulty is it to replace?

If it is difficult to replace you, you will earn a low salary

So all you need to do is to become an expert in your field and make sure that you outwork your fellow work mates

  • Rich people solve problems while poor people consume the solution

So let me ask you, you’re complaining that you have no money, what problem are you providing to society so that move can circulate from someone to you?

You need to learn to become a producer of value than being a consumer

So ask yourself what problems are affecting the society you come from? Doe the problem affect a large number of people? If yes, this is the beginning of a business idea

Business ideas originate from the problems which are affecting the society, if you solve problems money will come, if you solve a million dollar problem, you will become a millionaire

This is the only way to building wealth, solve problems, money will come, your solution should be scalable,

Money is in solving problem, create value and money will come, the more problems you solve, the more money you will earn

All you need to do is to start a business that solves a particular problem

  • Save and invest money

Saving alone won’t make you rich; your money saved loses value as a result of inflation

The only way to stop money from losing value is to invest it into something that will generate positive returns in the future

Rich people focus on increasing their investments while poor people focus on saving

Invest in the following and never work again: The 7 best investments to make

The following are the best investments to make in order for you to never be poor again

Being wealth is all about having a steady cash flow such that you don’t have to rely on your day job to cover your basic necessities of life

So how do you create this steady cash flow that keeps flowing towards your bank account? What are the best investments to make? Should you invest in real estate, stocks, mutual funds, bonds, certificate of deposit?

To have a steady cash flow you need to have income coming from different sources

The economic conditions keeps on changing from time to time so you need to be prepared for the worst case scenario by becoming financially literate

You need to learn the basics of personal finance which you make money and also make it grow.

You need to have investments that will enable you have an income both in a recession and boom

So

Here are the best investments to make and never worry about money again

  1. Invest in yourself

The best investment you can ever make is to invest in yourself; you need to invest in your education by reading personal development books, attending seminars, courses,

Investing in your education comes with good positive returns on your investment, you need to learn a high paying skill that will enable you make more money, become valuable person in the company

You also need to invest in your health; dead bodies or people on their sick bed don’t make money

Make sure that you keep your body healthy by not eating junk food, exercising etc

  • Real estate investment

Real estate investment involves all investments that are below and above land; it includes commercial buildings, apartments, residential homes, single family homes, duplex, condo, rental houses, business houses, rental offices etc

You need to invest in real estate that will bring to you a steady cash flow that will come to you

The best real estate is the one you invest in and get tenants to reside there and pay you rent on a monthly basis

By getting tenants to reside in the house, they will pay rent which you will use to pay off the mortgage on a monthly basis

In real estate you will make money in two major ways

  • Property appreciation

Real estate property keeps appreciating in value over time and the demand of houses keeps on increasing due to an increase in population

The value of the property today will not be equivalent to the property value in the future

Real estate investing is a good way to have income coming on a monthly basis, get a rental property, put there tenants and earn a monthly income

  • Monthly rent

Once you have real estate property in a good location, you need to get tenants who will pay you a monthly rent into your bank account

Real estate offers you an opportunity to pay off your mortgage using money you get from tenants

  • Start a business

Starting a business will help you get a steady cash flow if done well; your business should be geared towards helping people by solving their problems

Look at what problems are affecting the society you live in, ask yourself does the problem affect a large number of people? Are they willing to pay you to offer them a solution?

If yes this is the beginning of a business idea, start a business that solves a particular problem

The truth is money is in solving problems, the more complex the problem is, the more money you will be paid

You will be paid according to the perceived value of the problem, the more complex the problem is, and the more money you’re likely going to make

Your business will help you earn a steady cash flow

The solution you provide should be scalable; you should be able to offer the solution at a minimal production and shipping cost

The good thing with starting a business, you will get tax advantages and deduction, tax breaks and you have total control over the profits the company makes,

You also have an opportunity to treat all your expenses as business expenses to reduce o the amount of money you pay in form of taxes

So should we all start businesses?

Starting a business is hard, it needs determination, commitment, self discipline and resources so when you choose to start one, make sure that you don’t give up early

The biggest mistake which new entrepreneurs make is to quit, sometimes you quit when you’re almost at the breakeven point

Quitting should not be your thought even when your business is making losses, if you trust your business model, quitting should not be an opportunity

You need to own a business that does not take majority of your time; you will be able to leverage other people’s time to work for you

But for those who can’t start businesses, we have a great opportunity for you

  • Invest in businesses / Venture investing

For most people starting a business is hard but if you have the money you can invest in already established businesses

There are business that require huge amounts of capital to grow and so they are constantly looking for capital to invest into their own business

So if you have the money, this is the right investment for you to make, you can invest in companies and earn get paid your money back in future with profits

Companies that have limited company to grow their businesses mobilize capital to invest, so what you do is to invest in these companies that have the potential to grow

Look at companies that are being undervalued and invest in those companies because they will give you a high return in the future

Investing in individual companies is much risky but comes with high potential if done right

If a company you invest in today starts to make profits, chances are high that your money will multiply over time

By investing in these companies, you become part of the owners of the company

  • Invest in stock market

Stock marketing investing refers to purchasing shares in a given company, by doing this you become part of the owners of the company and you’re entitled to receive dividends when the company makes profits

You will receive dividends on a quarterly or annual basis

You need to invest consistently over time for a long time

You can choose to invest in individual stocks or index funds,

Individual stocks involves buying stocks in a single company, this investment comes with a high risk but profitable

Index funds involves buying stocks in multiple companies at the same time e.g. the S&P 500 companies in America

To make good money from stock investing, you need to invest in things which you know, every investment involves taking risk

So you need to diversify your portfolio to reduce on the volume of the risk.

The best platforms to use while investing in stocks include webull, public and robinhood

  • Invest in precious metals like Gold & Silver

Money loses value over time due to inflation but the value of Gold and Silver keeps appreciating from time to time because they are not being influenced by the printing of more money by the government

They are less affected by the rise in general prices of goods and services

So investing your money in Gold and Silver will help you keep the value of your money

These are real physical assets and they will bring to you good returns in the future

  •  Crypto currency

Crypto currency is a decentralized digital currency that exists over the internet; it is neither governed by banks nor government

It is being used to purchase products over the internet and on different stores across the globe

Though in some countries, it is illegal, but it is a great opportunity to tap into

Crypto uses the blockchain technology that is the modern technology across the globe and has built many millionaires in a short time

Crypto currency is working had to revolutionize the way how we deal with money, we are moving from physical money to digital money

Getting started with investing in crypto is the best investment to go because it is just new and you need not to miss out this opportunity of all times

The best crypto currency on the market to invest in include bitcoin, dogecoin, cardano, litecoin and shiba inu

The good thing with crypto is that transactions cannot be manipulated

This marks the end of the 7 best investments you need to make in order to not worry about money again