How the rich get richer and why it works

[GeorgeJohn]

The rich get richer because they are expose to the societies and they have expansion of knowledge or brain in terms of businesse strategies or risk taking in order to get what them want, that is from my perspective and also from environmental observation within my domain.
So but the process whereby the rich working, that is the practical example of activation of success of a wealthy or rich person, because their is a little differentiation between wealthy and Rich,  shall the difference is not really matters for thus discussion, what matters is engagement of the rich at work in order to bring the image of the industry or any sector of life.

[Hippocrypto]

The rich get richer because they are expose to the societies and they have expansion of knowledge or brain in terms of businesse strategies or risk taking in order to get what them want, that is from my perspective and also from environmental observation within my domain.
So but the process whereby the rich working, that is the practical example of activation of success of a wealthy or rich person, because their is a little differentiation between wealthy and Rich,  shall the difference is not really matters for thus discussion, what matters is engagement of the rich at work in order to bring the image of the industry or any sector of life.

In general perspectives, rich or wealthy individuals has no difference in many cases. What's with their current status is their abilities to use their money to create passive income because if huge quantities, so they could afford to lose bigger. They won't worry about the future because they had plenty.

[Kong Hey Pakboy]

The rich get richer because they are expose to the societies and they have expansion of knowledge or brain in terms of businesse strategies or risk taking in order to get what them want, that is from my perspective and also from environmental observation within my domain.

They can take risks because they have enough money to take the risk, I mean if you know that when you fail with your attempt, you will not have any problem with money then you will still do it. Other reason that the rich get richer is because they exploit the working class by giving them more work hours for little to no wage increase and very debilitating penalty when it comes to work infractions and they have ties with the government so they can get easily what they want because they have connections.

[Mauser]

Deep analysis but it doesn't work similar in every part of the world, in some countries people follow the words of rich people for no reason so they become the supporter of the party who is in the favour of rich people. Even though rich people are supposed to pay more taxes they get tax exception for everything when the ruling party is supporting them but again the party takes the money from rich people which can be covered for tax purposes.

I noticed the same in my country, there are very public figures who appear rich and people just believe every word he says. I think we as investors need to be careful and check, if he is actually rich and how he got rich. If he has just money because of his public status and not by doing something extraordinary, then we shouldn't take him as a role model. Another thing I noticed is the super rich tend to very secretive.

[fortebettor]

Your post should be titled "How the oligarchs get richer and why it works."
Do you think that the only way to become rich is to get political power?Money>Power>More money
You seem kinda inspired by Machiavelli.Is this some kind of guide about how to divide and manipulate the people,in order for you to achieve wealth,power and influence?
The rich get richer because they are investing and all their money works for them 24/7.
Also it's way easier to increase your wealth significantly,when you are already rich.

The law of this world with money manipulating people. But it is not always the case that the richer someone is, the easier it is. A lot depends on how he achieved his wealth. If someone got it as an inheritance, they will not be able to multiply it. Rather, he uses his means and wealth as a tool for manipulation, control or corruption. Unfortunately, money is often the undoing of many people.

[Lorence.xD]

Deep analysis but it doesn't work similar in every part of the world, in some countries people follow the words of rich people for no reason so they become the supporter of the party who is in the favour of rich people. Even though rich people are supposed to pay more taxes they get tax exception for everything when the ruling party is supporting them but again the party takes the money from rich people which can be covered for tax purposes.

That is how sheep function, they will follow who is going to feed them. The reason that they get rich is because they keep those that will try to revolt at bay by giving them enough money to feed them and not to become discontent of their situation, not to mention that the enforcers of law are on their side it adds an ease that they can keep their wealth. The tax exemption thing could be destroyed if the people in the seat favor the public more than the rich people.

[AicecreaME]

I don't agree with majority of your statements. The wealthy people doesn't get richer just because of politics and power. Although yes, it plays a part since connection with different people is involved. However, the rich aren't always involved in politics. In fact, most of them avoid it as much as they can because they know what kind of world it is - chaotic.

The rich people gets richer because of hardwork. Majority of the rich people I know came from nothing. What paved way from them achieving the status they have right now is perseverance and determination. They used their money in investing instead of spending over luxuries things that are just liabilities. Although there are really some rich people (billionaires) that hoard money and were able to acquire such great amount because of unjust treatments, labor malpractices, and giving below the liveable wage value.

It just really depends on who are we talking about. The rich that acquired their wealth by hardwork and perseverance, or the rich that acquired their wealth using evil deeds like stepping onto someone's rigbht.

[bitcoin_bob]

Rich people know what to do with their money. Simple truth, isnt it? Ordinary people usually dont know how to multiple their capital

[Ridwan Fauzi]

They already know how to manage money well, I don't think for those who seen have a lot of money and a lot of asset can be said as a rich man. Because, we don't know their state properly, we don't know that their debt is more than he has now, right?

Different with some people who doesn't have a lot of money and he just has a few asset but he has saving money and routine savings every day or every month even the most important thing is that he does not have debt either to the bank or to other places, I guess that is the real a rich man.

We are often deceived by giving a judge on something that is visible directly to our eyes without knowing what is happening inside. The main focus is a rich man can or able to manage their money properly and he will know what will happen later so as they will make a solution to something that will come.

[conected]

Rich people know what to do with their money. Simple truth, isnt it? Ordinary people usually dont know how to multiple their capital

- Not exactly, ordinary people know what they should do with their money but a big difference in capitalization creates a correlation of returns, I mean, if we have too little money to start with, our big profit target needs to be high while for the rich, a few percent of the return is more than enough, their risk is less, especially, their psychology is quite stable compared to ordinary investors. If we add up the probabilities they can associate and manipulate the market, implicit relationships, it is not surprising that more rich will become richer

[youdacapt]

Rich people know what to do with their money. Simple truth, isnt it? Ordinary people usually dont know how to multiple their capital

i think the rich people are individuals who has actually figured out the importance of risk taking; just as it works in trading; the higher your $ invested in a trade; the higher you are going to earn. Also rich people are usually individuals earning from multiple streams of income; with clear discipline as regards luxury and assets.

Rich people would continue to be rich because the ordinary individuals would rather worry about what they can achieve to survive today and not tomorrow.

[Twentyonepaylots]

Your first statement is right, but not quite precise. I think the best way to describe what the 1% of the society do is that they hoard their riches and diversify them, never liquidating everything in one go. This is why even in great collapses and declines in economy that this world has experienced over the past few centuries, there's still the few people that come at the top, and most of the time these declines ulonly further the divide between the poor and them, making them even more richer.

[iv4n]

Rich people know what to do with their money. Simple truth, isnt it? Ordinary people usually dont know how to multiple their capital

- Not exactly, ordinary people know what they should do with their money but a big difference in capitalization creates a correlation of returns, I mean, if we have too little money to start with, our big profit target needs to be high while for the rich, a few percent of the return is more than enough, their risk is less, especially, their psychology is quite stable compared to ordinary investors. If we add up the probabilities they can associate and manipulate the market, implicit relationships, it is not surprising that more rich will become richer

I use the term "ordinary people" too, but truth is that "ordinary" is not the same on every continent, in all countries... I guess for some "ordinary people" it's not easy to get through the month with all the expenses we have in the modern age! So except for a big difference in capitalization, there is one more thing, "ordinary people" don't have what to invest! If you risk that little you have you can stay without food or monthly rent... for people with families, it's a huge risk, that involves losing a lot more than just money! On the other side, rich people risk just money, and the more money they have the risk will be lower for them, even if they lose some part that will not hurt them in any way!

I don't agree with majority of your statements. The wealthy people doesn't get richer just because of politics and power. Although yes, it plays a part since connection with different people is involved. However, the rich aren't always involved in politics. In fact, most of them avoid it as much as they can because they know what kind of world it is - chaotic.

The rich people gets richer because of hardwork. Majority of the rich people I know came from nothing. What paved way from them achieving the status they have right now is perseverance and determination. They used their money in investing instead of spending over luxuries things that are just liabilities. Although there are really some rich people (billionaires) that hoard money and were able to acquire such great amount because of unjust treatments, labor malpractices, and giving below the liveable wage value.

It just really depends on who are we talking about. The rich that acquired their wealth by hardwork and perseverance, or the rich that acquired their wealth using evil deeds like stepping onto someone's rigbht.

You are totally right! This world is big, with many souls walking around, and each of them has a different story to tell! In the end, it comes down to who you are talking with, as you said!

[Leviathan.007]

In my mother language we say 'money brings money'. The reason is clear, whenever you do have the money you do have the power to earn more money. to give an example if you do have a trading account with 1K bucks capital you will usually 20-25 per trade while if you have 10K account you will earn 200-250 usd profit or even more. If you google 'compound effect' and read the compound effect book from mr.hardy you will understand how the rich people can have more potential by using this technique. In the other hand, the rich man who is doing successful trades for years usually knows how to get some money from the markets because he could find the way and this can be another reason for your toughs.

[cheezcarls]

This remembers me of one old saying “The rich gets richer, and the poor gets poorer”.

I’ve learned this during my days as a network marketer who attended so many motivational and financial literacy trainings. The real reason why the rich gets richer, is because they keep continuing to invest on more promising opportunities like stocks, derivatives, crypto, etc., that give them long-term passive income. They have a rich mindset where they focus more on buying assets than liabilities with proper risk management.

On the other hand, the poor gets poorer and I highly agree with this statement. It’s because they have a poor mindset. It always starts with their mindset, and that’s where they are now and might instill that to their future generations. Poor mindset includes spending more on liabilities than assets, not thinking big by being contented in their minimum wages, afraid of taking and managing risks, etc.

That’s what I know about the rich gets richer, and the poor gets poorer. 

[ven7net]

As you know, money makes new money and this, in particular, explains the fact that the rich are getting richer. People who have money, they have power, and they use their influence and money to play the situation they need in their favor. Yes, this is a game and the rich play it to become even richer. If we talk about the ways to achieve this goal, then it will be just talk and you will never be able to use them to become rich. It takes no rules or luck to get rich, you have to be in the right place at the right time and you will probably just be chosen for it. Unfortunately, I have not yet seen a simple guy like me become rich simply by hard work. But I believe that all the envy is only from us and probably for big money you still need to have the appropriate thinking and then something may work out.

[Vishnu.Reang]

Rich people know what to do with their money. Simple truth, isnt it? Ordinary people usually dont know how to multiple their capital

For the rich, there are multiple loopholes to avoid paying taxes. And most cases of loan default are done by the ultra-rich and not the poor or the middle-class. Both the left-wing and right-wing political parties are united when it comes to maintaining the status quo as far as the tax loopholes are concerned. The right-wing parties tend to decrease income tax, while the left-wing tend to increase them. But both these groups keep loopholes available to the rich, and in the end the rich will have a tax burden that is proportionately lower than what the middle-class is having.

[dimonstration]

There are rich people who do not needs to be involved in politics to be able to get rich and richer, its just that most of the rich needs connection to grew their businesses and sometimes politics and avoiding some laws will help them do that. Many rich people do not prefer putting their money in just bank they make business to make more business and to expand and create more opportunities its taking risk whether the business will succeed

[AndySt]

Unfortunately, I have not yet seen a simple guy like me become rich simply by hard work. But I believe that all the envy is only from us and probably for big money you still need to have the appropriate thinking and then something may work out.

There are many easy ways to increase wealth, but the main problem is that these methods become available only when you overcome a certain threshold It depends on what is considered hard work and what is considered wealth, because different people and even in different regions of a particular country have different ideas about it. Someone means hard physical labor, someone may mean working activities for a duration much longer than the usual working week. You can earn a fortune by hard work and be considered rich by the poor people around you, but I am not sure that you will also count yourself by comparing your fortune with people who are much richer than you.

[tygeade]

Well you did make some point, especially the point of making people feel hopeless. Seriously some government will do things that will make citizens become hopeless, and this is very bad for the common man. I live in a country where this is a problem, people are starting to lose hope in their leaders and in the country, and when you talk with most of them they will tell you that the country is never going to get better again, and will only continue to be getting worse everyday.

This mindset is very bad, and it’s making some people not to do things that they will do to benefit the country, rather they will prefer to leave the country if they get the opportunity to leave and search for greener pastures. That’s one of the worst things that can happen to a country.