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Friday, January 15, 2021

Big Picture

Why the rich are getting richer

The title of today’s article is the same as the successful book of Robert Kiyosaki. The system works like that; capitalism is based on the idea that if you have an initial capital, you can invest it and get further profit. Banks are an excellent example that works like that. They basically take your capital and they reinvest it for their own benefit. In the meanwhile, they provide the service of keeping your money safe. The reality of this function is more visible if you see how things work for the poor. The less money you owe, the hardest it is to start a business and prosper from that. It does not have to do with how intelligent or capable someone is; it is just how things work for everyone.

  1. They transfer their activities online
    Rich people do not only open their horizons on what business they should start, and which customers to approach. They also make sure they use all the tools and resources available to achieve their goal, which is profit. Whatever they do, they make sure they have all of their activities available online. It is not something that applies only in the coronavirus era. It is common sense for successful businessmen for decades now. Transferring your products online helps you have access to more potential clients. It is the perfect way to broaden your customer pool and attract more people to buy your goods. Besides, once you go live on the net, things start to flow and become automatic. The initial effort required to go online, saves people a lot of time and fastens the income flow.
  2. They approach the correct audience
    People who work in marketing always say: ”Your price depends on your customers.” Even if you work in the cleaning service, it is more probable to have a satisfying salary if you work for the White House, rather than working for people who are not well paid. Businessmen who start their investments prefer to provide items and services purchased by wealthy individuals because they are willing to spend more money for whatever they intend to buy. They are also more likely to buy more goods and eventually pay another respectable amount of money again. The profit one can gain from this audience is far more preferable compared to any other audience.

  3. They work for themselves
    Rich people are not in need of working for other people. It is more probable that they have set up a business and they gain money from there. No one is taking advantage of their work. Instead, they have people working for them. The amount of money they receive is not equal to the money they spend to pay the rent and their employees. Otherwise, they wouldn’t have profit. Contrary to that, the difference between what they spend and what they get is enough to help them grow their company bigger. Some of their earnings go for further investment, and there is not a single penny spent for anyone else’s benefit.
  4. They don’t wholly retire
    Due to the fact that rich people invest a lot, they don’t work like most people. They might be working on a tight schedule or they might work whenever they want. No matter the situation, they probably run their own businesses, and they have made a bunch of investments. This means that they have an automated system of incomes and practically spend some time seeing how their business is going. They don’t work for others, so even when they retire they still deal with their own businesses.

  5. They create multiple income flows
    Take the example of a person who provides a service. Let’s consider a personal trainer who supervises and advises people on what type of training to follow, and which diet they should prefer. If that person stays there, the income they will get is not going to vary a lot. To make their business more profitable, some people have to broaden the provided services. For example, they can write a book on how to become fit, apart from being personal trainers. In that way, they create income from many sources. It allows them to seek multiple opportunities and get more wealthy. It also protects them from the possibility of being left high and dry if something goes wrong with their initial income.
  6. They invest
    Rich people have the luxury to invest. They owe the initial capital that is demanded to start a business and the necessary amount of money to expand their existing companies. The more they have the easier it is to dominate the business world. Investing is the number one way to grow your income. People who work as employees for others are unlikely to make a considerable change in their annual income. Even those who work as executives in responsible positions will never reach the prosperity they desire, if they don’t take the risk to invest. Investment is all about giving one and getting back two.
Anna Siampani
Anna Siampani, Lifestyle Editorial Director at the CEOWORLD magazine, working with reporters covering the luxury travel, high-end fashion, hospitality, and lifestyle industries. As lifestyle editorial director, Anna oversees CEOWORLD magazine's daily digital editorial operations, editing and writing features, essays, news, and other content, in addition to editing the magazine's cover stories, astrology pages, and more. You can reach Anna by mail at anna@ceoworld.biz
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