Why are the rich getting richer? That’s a question a lot of people are asking these days. We hear on a regular basis how the middle class is shrinking, the poor are growing in number, while the number of newly rich millionaires seems to get larger every year. The very extreme upper class (the so called “mega rich”) seem to be gaining in number every year as well.
So why is this happening? It’s because America (most of the people reading this post right now) has become a nation made up of people in perpetual debt.
You Won’t Get Rich With Consumer Debt
“What’s debt got to do with it?” you might ask, “Don’t we all need debt to live a normal life these days?”
Well, the answer is “yes” and “no”. Do you need debt? No. Do you live a normal life if you’re in debt? Unfortunately, yes.
For about the last 40-50 years, credit card companies, banks, and other lenders have been chipping away at the basic values of saving and living on less than you make that we once lived by. They encouraged us through their marketing to use borrowed money to increase our lifestyle using easy monthly payments. The only problem with that is that when you borrow, you lose financially.
You end up paying more for those things that you buy on credit than if you had just paid cash. Sometimes it ends up being 20% more. Sometimes you end up paying more than double.
Where does all that money go? It goes to the credit card company, to the bank, the car dealer, and the department store. It goes to those people who understand money and know how to get it from those that don’t.
It goes to the people that have a plan.
That brings me to share with you one of the most basic principles of money that many people never really think about or act upon. That principle, simply put, is this: Money will always flow to those who understand how it works, and away from those that don’t.
The reason why so many Americans are hurting while the rich are getting richer, is that the average American family has been living on more than they make because they borrow money to live, fostering a false sense of prosperity that actually results in the opposite, which is bondage and slavery.
When it comes down to it, you have to come to the conclusion in your own life about how you want to live it.
Do you want to be working to make someone else richer and be in bondage to them through the almighty monthly payment? Or would you rather work to preserve and multiply what you have because you were wise and escaped from the trap of perpetual debt?
Yes, the rich are getting richer because there are millions of suckers out their believing that they need debt to live. I won’t demonize the rich, most of them are rich not because they take advantage of people (they wouldn’t stay in business long if they did), but because they understand the basics of money.
You don’t have to be one of those “normal” Americans.
You can be smart with money too.
You can get yourself out of debt and change your family tree forever.
You can change your relationship with money starting today and begin succeeding like you never have before.
Have you done anything to change how you handle your finances?
Leave a comment, I’d like to hear from you.