Being a millionaire is not just about sitting around counting money
There are many misconceptions that most people have about wealth. One of the most common is the belief that being a millionaire it don't require anything. Most people think that being millionaire is easy. As easy as only of having so much money that you only have to counting and spending it.
But nothing further from reality. If it were that easy, every human being on this planet would be rich, and no one would be. Yes, it is a paradox. In any case, the rich do not spend money just to spend it, they invest. Well, obviously they have expenses to cover in order to live their lives. But what I mean here is that they don't focus all their attention on expenses. But mainly on those things in which they can invest.
Because when you invest in something, you have the hope of obtaining an economic return. In other words, by investing, we expect to earn a return on the money we put into play. Whether or not we make a profit is part of the game.
Focus on winning
As I mentioned, the rich focus on earning more and more money. The opposite of what happens with the poor, who focus on spending more and more. It's as simple as understanding the simple fact that the majority of people in this world are poor. Which makes the economically rich a minority.
But it is a fact that the poor often have one or at most two sources of income, and dozens or hundreds of expenses. While the rich often have dozens or hundreds of sources of income. And an amount of spending well below their economic income levels.
This is the reason why the rich are rich and the poor are poor. And even more, this explains why this will always be the case.
The rich people increase their purchasing power at every moment
With their actions, then, the rich people always increase their purchasing power. This, while they keep down their expenses and all those things that superfluously take money from them and do not generate a return.
Because an expense is simply something we put money into and it will not generate a monetary return. But, as we said before, an investment is different and it is the opposite. An investment generates monetary returns.
The issue with investments is that we must do them well. That is, we must plan, think about and do them very well. Because a bad investment is a decision that can become something worse than an expense. When spending, we put money into something that gives us some kind of benefit (not financial). But a poorly executed investment will only make us lose money. That is, without bringing us any kind of benefit.
That is why the rich specialize in investments and know how to execute them correctly. They take risk and make a profit. And along the way, they generate lots of revenue streams that generate lots of money for them along the way.
So as we can see, being rich does not mean just sitting down to count money and spend it. But it has a whole mechanics and logic behind it. When we analyze it, it is then that we realize that most of the rich are not rich by mere chance. But because they are savvy in their finances and are extremely adept at managing money.
What did you think of my article? Do you consider it a relevant topic? If you have something to contribute about it, I invite you to leave it in the comments. Thank you.
Posted Using LeoFinance Alpha
Posted Using LeoFinance Alpha