5 reasons why the rich become richer

rich become richer

We have always wondered why the rich become richer while the poor become poorer, but we are here to find out why. If you added everyone’s net worth in Kenya, and every Kenyan coin out there, you would come up with a figure between 8-10 trillion shillings which is the value of Kenya. From this value, 2% of the population control about 40% of the total value of Kenya, and those are the super-rich people in Kenya. Relative to that small discovery, today we are going to discuss a very interesting topic on why the rich become richer while the poor become poorer, follow my lead good people.

Read also: I found a Loan app that is as good as Branch

Why the rich become richer

rich peopleThis is a topic we hear about everywhere on Fox News, CNN, in schools and just about everywhere. No one is happy about the hard economy yet there is a percentage of people at the crest who barely know what it feels to live from paycheck to paycheck. Everyone is agitated by the greed for power, riches, cars and wealth that the rich have at the expense of other people.

While we can spend all the time expressing our fury to the rich, I think it is only wise to learn from the rich so we can all improve our standards and get to enjoy the good things in life. Whether we like it or not, the gap between the rich and the poor is growing bigger and bigger by the day and the only thing you can do about it is make your own money. Here are some of the common reasons why the rich become richer.

Must read: Business ideas you can start with Ksh 1000 capital
  1. Rich people buy second-hand assets
  2. Rich people buy practical family houses
  3. The rich befriend their fellow Unicorns
  4. Rich people buy durables not brands
  5. The rich marry from the rich

Quote of the Day “Rich people are busy being rich while poor people are busy trying to look rich”.

  1. Rich people buy second-hand assets

rich become richerIf we could borrow a penny from one of the richest people today Warren buffet, many people know him as the greatest money maker in history, he would tell you that cars are pretty expensive to buy, maintain and insure. The rich become richer because they do not have anything to prove to the public, they buy second-hand reliable cars which are relatively easier to run and have cheaper insurance.

 

Related: 10 things poor people do that the rich DON'T

Poor people, on the other hand, want to prove to the masses that they are rich. They go buying the latest car in production worth hundreds of thousands of dollars. Poor people tend to concentrate more on how they look and how other people think of them. They live a life of show of which is definitely expensive while their rich counterparts are keeping their costs down and minding their own business.

In the long run, a poor person ends up spending all their fortune trying to show off to their friends with depreciating assets. The rich person, on the other hand, made a wise decision to keep his costs down by investing in an asset that gives him the most value. A car is just an example showing the difference between how the rich and the poor spend their money.

2. Rich people buy practical family houses

Again it is about the showbiz of the poor vs the rich. While the poor are trying as much to show the whole community that they actually have some money to spend on a big house, rich people invest in a smaller house that is easier to run and manage. Houses are the most expensive asset that most people buy in their lifetime.

Must read: How to make money with a blog in Kenya

A smaller house means that it costs relatively cheap to clean, and do other home improvement services. Generally, the smaller the house the better, the utility bills are smaller and if you are buying it using a mortgage, the monthly installment will also be affordable. Such small practices help the rich become richer. The poor people, on the other hand, want to own the biggest house in their neighborhood.

They think that by buying a house twice as bigger as that of the rich person; they will challenge them or at least keep up with them. The truth of the matter is, the big house will sooner or later become a burden to the poor person. It will require more furniture to look decent, the mortgage installments will be double what the rich person is paying and the utility bills will most probably go over the roof.

3. Rich people buy durables not brands

Another thing that makes the rich become richer is by prioritizing on their purchases. When we talk about purchases, clothing is one of the most popular purchases that people make. It is the poor people that frequent the mall quite often to check out the trending fashion. They wear designer jeans, and suits which last a few months or a year max before they are no longer serviceable.

rich become richer

Read Also: Blogging tips to turbocharge your blog traffic

Kenyan billionaire Manu Chandelier said he only has 5 suits in his closet and that is all that he owns. You see, rich people understand that clothing is just something to put on your body and nobody really cares about the brand or name printed on that cloth. What they do instead, they look for a favorite brand that has been proven to be durable.

Most poor people are the ones who buy designer clothes in order to pose as rich individuals.  Rich people focus more on value than status and that is why you will never find a rich person with 5 Gucci belts in their closet. They rarely make a stop at the mall to shop for clothes but when they do, they make sure the clothes they buy will last them more than a year or two.

4. The rich befriend their fellow Unicorns

If you are flying higher than the average birds, it makes perfect sense to befriend the people you are flying together with. Sometimes we make the mistake of thinking that the rich are evil people but that is not true. Just like yourself, the rich people want the best for themselves and some have been through thick and thin to be where they are.

Don't Miss: How to file KRA returns on iTax

By befriending other rich people, the rich continue to grow their potential and increase their wealth. Poor people down below are only busy discussing how bad the rich people are. If a rich person runs into a problem, they also seem to have someone somewhere who is willing to help them out because they are well connected.

Poor people barely have any connections with anyone and when they run into a problem, they have to figure a way out by themselves. I realized that the best way to become rich is associating with rich people and in order to do that, you have to share common interests with them

5. The rich marry from the rich

To become rich, you can work hard for your money or you can marry someone from a rich family who can provide you with all the comforts of the world. But chances of marrying from a rich family if you are broke are slim. One way the rich become richer is by marrying from other rich families.

Read Also: Profitable business ideas you can start in Kenya

This way, the wealth is kept among the rich and possibly multiplied. How rich kids meet is by going to expensive schools and hanging out in parties of people in their own circles. If you are looking for an easy way out in life, the best way is to look for a marriage partner from a wealthy family and to do so, you must disguise yourself as a rich person to increase the chances of getting a rich lifelong partner.

Recommended for you

Avocado farming in Kenya: Avocado farming is the new Goldrush
Strawberry Farming in Kenya: Success story of a strawberry farmer
Best cars to use for taxi business in Kenya
Ten Things You Should Never Do While Driving: Bad Habits
5 Emergency Kit Essentials for Roadside emergencies
10 stupid mistakes car owners make that are often expensive
Who owns who: Car brands and their parent companies
Gotv self-service: How to use gotv self-service to fix problems
Gotv Customer care Kenya: How to contact gotv Kenya

LEAVE A REPLY

Please enter your comment!
Please enter your name here