The barrier between the rich and the poor is narrower than it seems. In fact, it is quite narrow. The rich understand some facts that keep them aloft while the poor are deprived of these facts.
Also, the rich understand the necessary tactics to enrich their pockets, while the poor don’t. When the rich say, “I’ll do it,” they do it or die trying. When the poor say, “I’ll do it,” they quit whenever things get tough.
This article is aimed at bridging the barrier. Listed below are facts known only to the rich:
1. The Golden Rule
The Golden Rule I am referencing here states “He who holds the gold make the rules.” This rule has several variations. In general, it means whoever has the money has the power.
The business variation states that the client has the power, but not only in terms of money. Clients talk to each other and share their experiences. They can ruin or sell your product or service.
2. Gambling is entertainment, not a business
The gambling business is an entertainment business. Like watching a movie, gambling relieves your body of stress. Unlike watching a movie, you can win back some of your money without losing it all.
According to Alice LaPlante’s article on Stanford, gamblers are out mostly for entertainment. The rich gamble for fun while the poor gamble to make money. That’s gambling for the wrong reason.
In the long run, the poor fall into a depression if they incur a loss but the rich laugh or drink it off.
3. Your personal home is not an asset
Robert Kiyosaki, the author of Rich Dad Poor Dad, explains this using cash flow. According to cash flow, anything that increases your cash balance is an asset. Anything that reduces it is a liability.
Your personal home is a liability. You spend on it almost daily. You must pay for basic amenities, insurance, and maintenance. The poor make the mistake of thinking their personal home is an asset.
4. To earn, you must spend
Money creates more money, while not wanting to spend increases poverty. Your spending could be investing or learning. If you invest wisely, you can put your income on autopilot.
If you spend to learn, you’ll reap what you sow. By learning, I don’t mean high schools and colleges alone. It extends to learning how to do anything — write, edit, repair cars, install security systems … the list goes on and on.
5. Being a middleman can be lucrative
Selling a stock that isn’t yours can be quite lucrative. Ask me how.
If you own the stock, it’ll tie down a portion of your capital. If you don’t sell it, you can’t restock. Even when you need to buy other stocks, you must wait to first sell those on the ground.
Being a middleman eases this. The client pays you, then you pay the supplier and deduct your gain. If this is well-planned, there’s no limit to what you can sell.
Any aspiring entrepreneur can start small using this method. It’s how I started my first and fourth businesses.
6. Passive income is a must to achieve financial success
You can’t achieve financial freedom with a single income. In a bid for financial freedom, you must create two or more income funnels. This may be a business in which you materially participate (active income) or one in which you do not materially participate (passive income).
To create an autopilot income, look to create a passive income. This is a fact every rich man knows and accepts.
7. Losers often follow the masses
You must be unique to be rich. You must go beyond expectations and break the rules to create your own path. Doing what several others have done the same way will end in rags.
Winners set the pace for others. Stop following the masses; create your own track and run at your own pace. Here’s also 6 Life Facts to Know Before You Turn 30.