What distinguishes the rich from the poor is wealth and the ability to maintain or increase it. The rankings of billionaires take their wealth as a benchmark to determine a scale of wealth and measure the variation over the years.
On the other hand, income is not taken into consideration because income is not constant throughout life and is moreover spent, in most cases, to meet one’s needs and requirements.
In the common imagination, on the other hand, we are often led to call rich those who spend a lot even at the expense of squandering their assets, but obviously, we must not fall into misunderstandings because to be such wealth must last.
In this regard, it is undeniable that rich and poor tend to remain two very distinct categories of people and the data show that, even in Western economies, especially in a period of crisis like the present one, the gap between rich and poor tends to grow and the transition between categories tends to be very difficult, where the rich tend to remain rich and the poor increasingly poor.
But what are the rich doing differently from the poor?
The answer is quite simple and the main aspect is precisely that the rich manage to create wealth, to maintain it, and to live on it while also using the income to increase it.
They have a smoother lifestyle than those we call poor or us, but this is because they have a wealth that they bring to income and that they preserve.
Only in this way can they maintain their lifestyle.
What can we do to get closer to the rich?
Take a mental leap and focus on three simple steps:
- create assets through systematic and automatic savings;
- invest the same and constantly check the yield ;
- increase it through new sources of income and the reinvestment of what is earned, through the compound interest mechanism.
If you notice the real rich, not the new rich, they do not have a level of spending sprees also because, in many cases, they already have everything. The producers of luxury goods know this very well they focus on the new rich who, in addition to having to buy everything, also need to demonstrate their wealth to others.
The rich also know how to invest their assets and always differentiate to mediate certain risks and returns with speculative returns.
Of course, the rich are also looking for new incomes, while we often out of necessity focus on what we have.
This obviously will make us richer and will allow us to distinguish ourselves, at least in the mental approach, to those who have an important heritage. If we pass this approach on to our children too, we will slowly become rich and reach a point where money will work for us and produce income and assets for our benefit.
In conclusion, to change our approach, we must not neglect any of the three aspects above and never forget to invest the assets without neglecting risks and opportunities and with a view to continuous adjustment concerning the changing conditions of the context in which we operate.
When we reach a patrimony that is satisfactory for us, we can also decide to stop working and live on an income, but this is still a distant goal, especially if we have a standard of living that we care about and which is also based on the superfluous, which is often synonymous with wasteful.
And do you already have a rich approach or do you still think poor?