Why you're not wealthy

[Bern80]

In response to the myriad threads I'll just lump together and call 'evil rich people', I thought maybe we ought to change things up a bit and see if we can get some of the haters to change their thinking.

Why aren't you wealthy? Is it really because all these evil people are holding you down? Or is it because your mindset doesn't really allow for much in the way of wealth accumulation? I would contend it's the later.

I think I'm safe in saying most of us would like more money. But how many of you have made that a goal? How many of you are really working toward that goal by finding ways to increase your cash flow? I bet not many. This is what I mean when I say most people who have accumulated wealth look at money differently than the whiners. If the goal really is wealth accumulation (as oppossed to get a good job, get a good education etc.) then you need to look at all the options. And a simple truth is working hard is only one option and probably the least effective, non sensical of the bunch. Maybe if I work harder I'll make more money. But working harder means more of my time. What is the point of more money with less free time to use it? The wealthy figured this out and realize it's not about working hard for money it's about finding ways for money to work for you. It's not about working hard. It's about working smart.

The problem is we've all been duped. Most of us have grown thinking the way life is suppossed to go is get a good education, get a good job, etc. This bullshit about the rich wanting more and more and more is just that. It isn't just them that wants more. It's everyone. The only difference is they figured it out and other people haven't and the reason they figured it out is because they ditched the conventional wisdom about how life is suppossed to go.

 

[Granny]

And the truth is that many of the wealthy are not all that wealthy. I'm not a Wall Street guru but I think the way it works (or so I've been told) is that someone buys (with actual money) some stocks. The expectation is to get good returns (profits/interest) for their investment. As the values of the stocks rise and fall the returns are either good or bad. A lot of people reinvest those returns to buy more stock rather than getting a check for the amount of the return.

Basically the buyer has "loaned" money to a company to grow, improve their product, create new jobs because of growth, etc.

These investments are called "paper money." In other words, the nasty wealthy investors haven't got squat until they actually cash in or sell those stocks and get actual money from the transaction. If a company they've invested in goes belly up there is no actual money to repay interest on the "loan" and the investor has also lost all the actual money he spent in the first place by making investments and reinvestments.

That's what caused all these people to jump out of windows and make runs on the banks during the Great Depression. They can "live the good life" and spend wildly and take cash returns to cover their expenses - but when a company goes belly up - they have nothing. Everybody loses - investors, the companies, the employees - not only any investment they made in their employer but their jobs as well, everybody loses.

Anybody can invest in the Stock Market. You don't have to be wealthy. Find a good stock and buy one share at a time. Buy another share each week or month if that's what you can afford to do. Hell, for awhile I was buying $10 stocks from a company that I purchased clothing from. They made great clothes - why not invest?

 

[Mr Natural]

Most people aren't wealthy for much of the same reason poor people aren't middle class.

They just don't know how.

Simple as that.

 

[California Girl]

Most people aren't wealthy for much of the same reason poor people aren't middle class.

They just don't know how.

Simple as that.

And who is responsible for that? Evil rich people? No. They are responsible for their own fortune.... everyone is.

 

[Bern80]

Most people aren't wealthy for much of the same reason poor people aren't middle class.

They just don't know how.

Simple as that.

Well yeah......I guess...... that's a one way to say it. lol

 

[Ravi]

I consider myself to be wealthy. And this wealth in part is derived from being fortunate enough to have been born an American. So I don't mind paying taxes...and I don't look down on people that work for me and pretend they are what the OP is claiming.

 

[Bern80]

And the truth is that many of the wealthy are not all that wealthy. I'm not a Wall Street guru but I think the way it works (or so I've been told) is that someone buys (with actual money) some stocks. The expectation is to get good returns (profits/interest) for their investment. As the values of the stocks rise and fall the returns are either good or bad. A lot of people reinvest those returns to buy more stock rather than getting a check for the amount of the return.

Basically the buyer has "loaned" money to a company to grow, improve their product, create new jobs because of growth, etc.

These investments are called "paper money." In other words, the nasty wealthy investors haven't got squat until they actually cash in or sell those stocks and get actual money from the transaction. If a company they've invested in goes belly up there is no actual money to repay interest on the "loan" and the investor has also lost all the actual money he spent in the first place by making investments and reinvestments.

That's what caused all these people to jump out of windows and make runs on the banks during the Great Depression. They can "live the good life" and spend wildly and take cash returns to cover their expenses - but when a company goes belly up - they have nothing. Everybody loses - investors, the companies, the employees - not only any investment they made in their employer but their jobs as well, everybody loses.

Anybody can invest in the Stock Market. You don't have to be wealthy. Find a good stock and buy one share at a time. Buy another share each week or month if that's what you can afford to do. Hell, for awhile I was buying $10 stocks from a company that I purchased clothing from. They made great clothes - why not invest?

It depends on how you define wealth. One theory of wealth is that the word is not a measure of money but time. Your wealth is how many months you could go without working and maintain your standard of living, to some.

You're right. Some of the wealthy don't have any realized income. They have assetts in stocks, which yes, is a risk. But you've tocuhed on the basic concept of wealth accumulation: get money to work for you. Don't work for money. Stocks aren't teh only investment that yield returns on investment. There are other vehicles with far less risk. Problem is you have to be rich to take advantage of a lot of them. I don't mean have the money. I mean legally there are certain investmenst that are only allowed to people with x amount of dollars. But there are other things as well like bonds, real estate. Own assets. Just make sure you know what an asset is. An asset is NOT anything you own of value. Your home is not an asset, not even after you've paid your mortgage. An asset is anything that generates income on it's own. Rental property, stocks bonds, etc.

 

[Bern80]

I consider myself to be wealthy. And this wealth in part is derived from being fortunate enough to have been born an American. So I don't mind paying taxes...and I don't look down on people that work for me and pretend they are what the OP is claiming.

What am I claiming they are? Why would you assume I look down on employees? It isn't an insult. It's simply observation. If those people really did have the goal of attaining financial independence, they wouldn't be working for you. That isn't a slight to them or insult to however you compensate them. Whether done explcitly by deciding what you pay them is enough to be content with or implicitly by not doing something else, those people have decided enough is enough.

 

[Ravi]

Lazy and stupid.

 

[william the wie]

The goal posts keep changing. Truck drivers in Haiti have cheap cell phones which means they have better transport and communication technology than the wealthiest and most powerful people in the world of a century ago. By historical standards Haiti is getting rich while still being the poorest nation in the western Hemisphere.

 

[California Girl]

I consider myself to be wealthy. And this wealth in part is derived from being fortunate enough to have been born an American. So I don't mind paying taxes...and I don't look down on people that work for me and pretend they are what the OP is claiming.

Most people who consider themselves wealthy are much like this. ^^^

 

[boedicca]

The problem is we've all been duped. Most of us have grown thinking the way life is suppossed to go is get a good education, get a good job, etc. This bullshit about the rich wanting more and more and more is just that. It isn't just them that wants more. It's everyone. The only difference is they figured it out and other people haven't and the reason they figured it out is because they ditched the conventional wisdom about how life is suppossed to go.

I'd add to this that politicians and special interests groups have conspired to indebt one into a neverending stream of payments.

One example: The Price Earnings Ration on Higher Education.

The Coming College Education Bubble - Forbes.com

 

[william the wie]

The college education bubble has bust worldwide, the returns on automating high wages is higher than automating low wages.

 

[Ravi]

I consider myself to be wealthy. And this wealth in part is derived from being fortunate enough to have been born an American. So I don't mind paying taxes...and I don't look down on people that work for me and pretend they are what the OP is claiming.

Most people who consider themselves wealthy are much like this. ^^^

I don't get what you are trying to say. The IRS considers me wealthy, too.

 

[Bern80]

Lazy and stupid.

I claimed no such thing. In a nutshell I claimed that if one wants to be wealthy there are certain goals that must be set and meat. If you haven't done those things you have little excuse to complain about not being weatlhy. The problem is the vast majority of people have been told to essentially do x, y and z and life will be okay. The problem is that line of thinking simply isn't conducive to wealth accumulation.

 

[Bern80]

The college education bubble has bust worldwide, the returns on automating high wages is higher than automating low wages.

I would agree. Going to college in of those steps that I mentioned that everyone takes for granted that you just have to do to make it. College isn't for everyone and a lot of what is taught has no real world benefit. College should be treated like any other investment. You want to see a return on that investment. College does not prepare you for life after collegem in terms of how to handle money on a day to day basis. It doesn't even always prepare you for a career. It just isn't something everyone needs to do even though now we judge people by whether or not they went to college.

 

[Granny]

There is wealth and then there is wealth. Old money is an entirely different wealth from that of the nouveau riche.

Old money and those who have it are about 100 cuts above the nouveau riche. They are more genteel, caring, giving, and unassuming about their wealth. They don't advertise or flaunt their wealth. It's the nouveau riche that we have more exposure to - the snotty, "upwardly mobile," "he who has the most toys wins" types. They put on a good show, but there's not an ounce of humility or sincerity in anything they do and they would stop at nothing to one-up, cheat, screw, or lie about in order to be "better than thou." I know - worked with some of them for a long time and all you want to do is just slap the living shit out them because of their unbridled arrogance.

I've also had a good deal of exposure to the "old money" people. There is a huge difference in attitudes and goals.

 

[Bern80]

There is wealth and then there is wealth. Old money is an entirely different wealth from that of the nouveau riche.

Old money and those who have it are about 100 cuts above the nouveau riche. They are more genteel, caring, giving, and unassuming about their wealth. They don't advertise or flaunt their wealth. It's the nouveau riche that we have more exposure to - the snotty, "upwardly mobile," "he who has the most toys wins" types. They put on a good show, but there's not an ounce of humility or sincerity in anything they do and they would stop at nothing to one-up, cheat, screw, or lie about in order to be "better than thou." I know - worked with some of them for a long time and all you want to do is just slap the living shit out them because of their unbridled arrogance.

I've also had a good deal of exposure to the "old money" people. There is a huge difference in attitudes and goals.

My observation is that your observation is extremely backward. It is show statistically to be incorrect as well. It's totally backwards logically as well. Who is more likely to be more responsible and more protective of their wealth? Someone who knows what it took to earn it. Or someone who it was just given too.

Statistically speaking 80% of millionaires (which admittedly is not a lot of money these days) are first generation millionaires. That is they did not come from or inherit their wealth. The rich are typically quite frugal as well. They don't really care about status symbols. Most drive Ford pickups believe it or not. Those people you see flaunting wealth are the minority of wealthy people and more likely to be comprised of the inheritors because they have no appreciation of money. For every wealth person who seems like the just want people to know they're rich. There are 10 more whom you would never know are rich if you saw them on the street. Making wealth is one thing. Keeping it means not spending it on meaningless things.

 

[MikeK]

I think a better question, and one that will help to develop a better understanding of the essential topic, is how many ways are there to acquire wealth?

Another good question is at what point is one considered wealthy?

 

[Zander]

If you aren't wealthy it's your own damn fault. DO SOMETHING about it or else STFU. Simple enough?