Why The Rich Are Getting Richer
By: Aidatul Fitriyah
Many countries have high economic disparities. If we look at the situation around us, we will find that many rich are getting richer, while the poor do not change. Of course, this does seem unfair to the poor. However, the rich are becoming more affluent in the pandemic. Maybe you are still wondering how this phenomenon has become common. This article will elucidate how the rich are getting richer, especially amid the global crisis.
1. They work hard
One of the sayings is “time is money.” This proverb aims to remind all humans to make good use of time because the time that has passed can never come back. That’s the principle that rich people always apply. They always put more value on time and value time well to make more money. Most rich will spend their time working hard and believe that their income is commensurate with how much time they spend working hard. This mindset is what they constantly instill in their daily lives and apply it to their descent. So do not be surprised if the rich choose to work to generate higher compensation than doing something useless.
2. They care about higher education for a promising future
Every parent always wants a higher education for their children. The rich always place education as one of the essential things in life. One of the reasons why children do well in school is because they take some additional lessons after school. Parents with higher incomes are more likely to enroll their children in tutoring outside of school. They do this so their child can learn more throughout the day. Not only that, the rich usually don’t think twice about spending money for their children’s educational needs, such as buying additional books or any sophisticated tools that support learning.
3. They avoid maximum tax payments
According to Research conducted by Vanguard, taxes can cost as much as two percentage points in returns a year. Taxation is used in many countries as the primary means of reducing inequality, and it can also act to increase or strengthen the economy of inequality. But many rich people avoid paying taxes on a large scale, preferring to save their money or earn their income by lending. It is the perfect way for rich people to avoid paying higher taxes because loans are not considered income. Rich people finance their lifestyles by borrowing against assets, such as real estate or stocks, rather than realizing the value of investments so that they will pay less to the bank in interest than the government in income taxes.
4. They can make good use of supercycle economics
Super cycles are usually driven by strong product demand growth. Economic supercycles are likely to generate sustained and robust demand for raw materials and manufacturing, such as metals and plastics, exceeding what commodity producers can supply. Supercycles, which are also suitable for stock prices, are often associated with periods of long-term growth for commodity markets. The rich will usually take their initial equity investment and buy other income-generating assets when they increase value.
5. They have an excellent ability to execute investment opportunities
Most of the rich have a tremendous financial mindset in managing finances. They will not be easily carried away by their wealth and achievements. They will try to keep on making money even when they are sleeping. The rich spend more time thinking about their finances than people who remain poor. They spend an average of 20–30 hours per month thinking, studying, and planning their finances. Rich people who invest more time planning their finances always make better decisions, get better results, and achieve financial independence. That’s why even if your salary is much if you still don’t have passive income, it’s better to save first. Use the wage for savings plus investment so that later when you sleep, you can still earn.
The rich can maintain their wealth by focusing on goals, not obstacles. They prepare themselves as best they can to face any obstacle that comes their way and believes they can overcome it. Even though they have experienced failure, they consider it a process towards their success.
Source :
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