Why Do the Rich Keep Getting Richer?

Rich people think differently. They have a different mindset. A mindset for gaining assets instead of liabilities. They work hard on their goals that they set and continue to achieve them. Living paycheck to paycheck is not something they do.

So why do rich people keep getting richer? Here are 6 ways Rich people keep getting richer.

One thing rich people have is an emergency fund. An emergency fund is enough savings that can cover you in an emergency. Emergency funds help to stop going into any investments and taking out cash.

1. They have an Emergency Fund

2. Pay Yourself First

One thing rich people do that helps keep them rich is that they pay themselves first. They have money automatically withdrawn from their savings into their investments. They put it away so they do not have the ability to touch it.

3. Not Keeping Up with the Joneses

We want to keep up with our friends in buying that new gadget, that new car, new clothes, and buy lavish drinks and good food. Rich people do not spend money on those things. Rich people buy assets instead of liabilities.

4. The Snowball effect

The rich use snowballing with their wealth. It is a matter of using compound interest to create more wealth. If you want to know why the rich keep getting richer, compound interest is the assistant that keeps giving and giving.

5. They spend Less on Taxes

The rich love to avoid not paying taxes. It is easier for them. They know how to not pay it, and they use the law to keep them rich. If you want to gain more wealth figure out how to pay less taxes.