I always hear people at work say this. As if it is an excuse or justification as to their own personal financial situation. It’s like "Oh well, what can I do. The rich get richer."

The gap between the rich and poor continues to widen. Why is this?


Thanks,

B

The fact that Rich are becoming even richer can be the outcome of 'Money breeds Money.' If if you have enough money then you can utilize it towards breeding more money from it.

The rich get richer because they know that being rich means not just having money and network but also the right mindset, the essential traits and the know-hows to multiple their money when the opportunity arises.

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It takes money to make money. And those WITH money can more easily make investments, save, withstand recessions, etc.

I agree.To take money to make money is easier than others.

Rich are rich and continue to be rich because of their mindset. Around 70% of the millionaires in USA are first generation millionaires. They didn't start with large pile of money. They got there with their discipline, hard-work and careful money management.

Without being financially responsible, one can't be rich or become rich.

Yes, I totally agree here. If I was to win a million dollars, I would put the entire amount in the bank or some place that gives the highest interest and live off the interest. The rich are doing the same. They are putting a lot of their money with places that yield the highest interest and that is how they are making more and more.

Agreed; all the whining about how rich people have an advantage is garbage. Of course rich people have an advantage, and most of them worked d@mn hard to establish that advantage.
Our country will continue to rack up record debts (both personally and publicly) until we change our collective cultural ideas about personal responsibility. Bailouts, welfare, wealth redistribution all send a single message: if you're successful, you will be punished, and if you're not successful, you will be rewarded.

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Brian
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I've been trying to figure this out forever

that is because rich have the resources to expand their wealth while poor are just trying to stay alive

oh well.. obviously because of the financial stability of the two.. the rich become richer because it's easy for them to invest on some business that would get them even richer.. while the poor? well, poor can start a small business.. with loads of sacrifice and perseverance,they can be rich in no time if they handle their business well..

The rich have "access" to people, companies and deals that the common man does not. I was laid off last Dec, and the ex-CEO of the company has sent me a lot of consulting work. We are actually consulting together on some gigs now. He is on the phone non-stop with companies all over the country who want him to be on their board of directors, advisory boards, etc. Even though he takes very few of the offers, he frequently turns those that he turns down into consulting opportunities or helps them fill the spot with someone else - someone he knows from networking who would likely be a great fit. He is constantly networking with other CXXs around the country.

The rich have a different way of life. They work smarter, not harder. They learn to network. They help each other out and scratch each other's back.

Many rich folk own their own business. In fact, most have several businesses. Most don't own a lot of personal assets. They set up LLCs to own their cars, homes, etc. This protects their assets should someone sue one of their businesses. And the business can expense the car, where you cannot if YOU purchase it. LLCs protect their businesses should they be sued personally, just like LLCs protect their personal assets should their business be sued.

LLCs are really amazing legal and financial instruments. They are great for all kinds of things, including estate planning. It's one of the most power tools that rich people know about and use extensively that poor/average folk almost NEVER use unless they own a small business.

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