Why do the rich get richer and the poor get poorer?
I started reading Rich Dad Poor Dad by Robert Kiyosaki a couple of days ago. I wanted to know what all the fuss is about. After all, Rich Dad Poor Dad is the #1 selling personal finance book of all time!
I honestly gotta give it to Robert.
One of the main ideas in the book is about making a clear distinction between “assets” and “liabilities”.
My simple take on it is this:
Whatever can generate an income on autopilot is considered an asset.
- Stocks, bonds…etc
- A business where leverage is implemented
- Real Estate ( if rented out)
- Precious Metals ( gold, silver…etc)
- Network marketing as a business (leverage)
….and so on.
Whatever is taking money out of your pocket without any return is a liability. (It’s anything that doesn’t belong to the list above.)
- Any toys. A brand new car ( You roll out of the lot and all of a sudden you loose 25% of it’s value) Ouch!
- Anything on a daily basis that you spend money on.
What you have to understand is the rich cover their expenses from the profit that their assets generate. The left over profit is turned back into the asset column for generating more profit. That my friends is an upward spiral.
The poor on the other hand live paycheck to paycheck. Known for their narrow mindset; they desperately want to appear rich. So they use credit cards to buy themselves a fancy car, with money they don’t have, in order to impress people they don’t like. 
This is what we call a downward spiral.
The poor work for money, while the rich have money work for them.
I know it may sound way too simple, but if you read Robert’s book you will see the basic theory of why the rich get richer boils down to this.
I wouldn’t say I’m rich, but I’m certainly headed in the right direction……
Let me tell you why…….
I stared investing in silver bullion (asset) about 2 years ago. About 6 months ago I decided to tap into the beauty of network marketing (asset). Robert Kiyosaki, Donald Trump, and Warren Buffet all say network marketing is the “business model of the 21st century.”
I was searching for a company to join when it donned on me: ”Is there a network marketing company that deals with silver and gold?” Oh yeah baby! Sure enough I found an MLM company that does just that.
Think about it! How cool is that?
A home based business that cultivates real assets and real wealth. What I discovered is not a weight loss juice, or a beauty product that has an expiration date LOL! I found something that has lasting value.
Think about it for a second: What would you want to have a garage full of? Weight loss products or silver? It may seem like a dumb question, but many people don’t see the opportunity that is staring them in the face.
The bottom line: In order to be financially independent you must make your money work for you. You gotta invest in assets and let your money do the work, because that’s what money does best.
That’s the reason I’ m into network marketing, and I joined a company that deals with silver and gold.
If you think the government or your “secure job” is going to take care of you, I urge you to think again. There are no guarantees in this world, but you can up your odds by taking full responsibility for your actions and decisions.
Now you know why the rich get richer and why I urge you to take care of yourself and your family.
And finally remember there is nothing good or noble about being poor. It’s like thinking that going to war is noble in any way.
Show me your alive!
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Email: Akos@AkosFintor.net
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May 23, 2012 at 5:18 am
Hi Akos,
This post and video really make you think. Assets and put money back into assets.
Networking marketing is a powerful asset if done right.
What you are doing killing two birds with one stone is very interesting. Later,
Terry Conti
May 26, 2012 at 11:22 pm
Hey Terry,
Let me tell you, I used to be caught up in material things..clothing, gadgets and so on.
My consciousness (regarding what I do with money ) has shifted toward more important things that is “let money work for you, Akos; that’s what it does best after all. ”
Thanks for your contribution, Terry
May 24, 2012 at 7:33 pm
Very interesting points. I actually put my money to work several years ago. I saved up a substantial amount of money to the point where I felt comfortable enough putting it to use. So I put it into a bond and let the money earn me interest. It was a decent inflow of money. Not enough to live on entirely, but still pretty good. Thinking back on it now, I wish I had invested in riskier assets.
May 26, 2012 at 11:27 pm
Very cool, Steve.
Tony Robbins has a very cool cd on money management about where and how and how much to invest. It was a huge eye opener for me.
LOL just sayin’
It’s on the Get the Edge audio course.
A small portion of your money could be invested into riskier stocks for higher return but I would set up a stop loss at 8%. But I’m not a financial adviser by any means
thank you for dropping by, Steve
May 25, 2012 at 5:21 pm
Awesome post Akos. I love your topic here. Rich Dad, Poor Dad is such an amazing book. I had no background or knowledge at all when it comes to finance but after reading the book, I’ve learned so much.
It’s amazing how a lot of people can’t differentiate assets and liabilities. Love how you’ve explained it here.
Anyways, great job!
Have a great Friday and weekend ahead!
May 26, 2012 at 11:17 pm
Hey Pj,
“If you can’t explain it simply, you don’t understand it well enough” – Einstein
Right?
Robert is awesome and I can’t believe that I postponed reading his books for years.
Live and learn!
thanks for visiting my blog!
May 26, 2012 at 5:31 am
hey Akos ! one of the fascinating post i’ve come across all week. The video does ring some bells, outstanding work. And as they all say money makes money. and i completely agree with you on the point that “The poor work for money, while the rich have money work for them”. i think i gotta check out the Robert’s book to have my moral autonomy going in the right direction when it comes to money.
May 26, 2012 at 11:13 pm
Hey Sunil,
Robert has a ton of great books on personal finance. You may also watch some his videos on YouTube; they’re short and very simple and focused, no bs there
I’m glad you found some value.
thanks for dropping by!
May 29, 2012 at 10:49 pm
Hi Akos,
I used to watch Roberts his videos from time to time just another great Leader isn’t he?
And your videos are great.
Kindest,
Sandy
June 1, 2012 at 9:03 pm
Hey Sandy,
His books are awesome. I like it how he explains complex ideas in a very simple way.
I’m glad you like my vids. I think videos are the fastest way to get a message across.
thanks for dropping by
May 31, 2012 at 10:34 pm
DUUUUUUUDE.. As usual – brilliant post. Robert Kiyosaki’s books are absolutely essential reading material. I think it should be mandatory reading in elementary schools. How much of a difference would that make in our kid’s futures?
So yes, assets vs. liabilities.. Yes, it’s soooo easy to get caught up in buying silly toys here and there, but real entrepreneurs make these buying decisions with real thought.
Congratulations on joining the right MLM for you! That’s awesome man..
By the way, I’m diggin that top commenters box – I’m gonna have to look into that! Thanks for sharing bro.
Cezar
June 6, 2012 at 5:20 pm
Hello Cezar.
Tony Robbins also has an awesome cd on what method he uses and what worked for millions of others to secure finances. That’s what I follow
I used to very materialistic and I burnt through my money pretty fast leaving my a big hole of emptiness inside of me. Now, investments make me really happy, also bringing peace.
Study shows that no. 1 thing that people worry about is …………..you guess it! It’s money. No shit!
thanks for input, man!
June 2, 2012 at 5:46 am
Hey Akos,
Great post! That explains why the rich get richer. They have their money working for them rather than them working for money.
I’ll be back again
June 6, 2012 at 5:14 pm
Hey Ruth,
That’s exactly right. It’s completely logical but most of us miss the importance of it.
Discipline is also a major ingredient.
cheers
December 23, 2012 at 2:45 pm
Hey Akos, I enjoyed reading this. Looking forward to reading more.
December 24, 2012 at 5:12 pm
Hey Ty,
I’m glad you’ve found value. Thanks for coming by!
January 31, 2013 at 12:28 am
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February 1, 2013 at 6:41 pm
thnx