The rich invest their money and spend what is left. Their investment is focusing on the long-term acquisition assets such as stocks, bonds, business and real estate and what that asset will earn. The rich know exactly how they need to think in order to earn money. They always think (dream big) and act from the view of playing the game to win. They make sound investment decisions which are always based on their financial goals rather than market movements, controls their thoughts and emotions every day. They spend money on education seminar, books, newspapers and learn. By increasing their knowledge, they are able to see more opportunities, which translate into more money.

The poor spend their money in luxury items such as car, watches, electronic gadgets, jewellery, etc. and invest what is left. They spend more time and effort to buy the right luxury items than to buy the right financial products. They seek advice of financially struggling friends or relatives and blindly invest where they indicate; never try to understand basic investment principles and feel doing investment are confusing & difficult. They are always in a state of mind where thoughts such as “I can’t afford it” or “Live below your means” come from. They are constantly fighting for financial survival, regardless of how much money they made.

The middle classes generally do not spend on such assets which make them wealthy in the long term. They spend their money on liabilities treating them as assets. As their philosophy is to buy more real assets, though it is beyond financial capacity and treat them as investments. This is in reality increase their expenses, erodes their savings and lead to a great debt trap and into more financial uncertainties. Invest wisely. Speak to your Financial Distributor today.

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