There are a lot of questions that fly across the globe everyday begging earnestly for answers. Asking questions has been proven to be one of the most neglected principles of success. What makes the rich truly rich? How do I know if I’m even rich? Why are a lot of people poor while only few are really rich? What can guarantee me access to lasting wealth? These are various questions that remain unanswerable in the minds of many. Let’s look at something interesting. Forbes Magazine defines a poor person as ‘one who earns less than $25,000 (approximately #4,725,000) a year.’


We therefore live in a world where the true test of wealth is defined by monies and material possessions. Ukrainian Security expert, Andriy Kuksenko says, what determines the discrepancy between the rich and the poor is not the VALUE OF THEIR WEALTH but the WEALTH OF THEIR VALUES. It therefore means that what makes the rich rich is VALUES not MONIES. Bill Gates was once asked if all his monies were lost, what would he do. He laughed calmly and said; ‘That’s no problem, I would recover the money back in the next two years. I can assure you of that.’ The lesson behind Bill Gate’s statement is that what makes him rich is not his money but the principles behind his money. Let me teach you some principles about money and some voodoo you must cast out from your frame of mind.


What makes the rich rich is the power of network. It is your network that determines your net worth. Most rich people you see today are into one single thing, it’s called network marketing! The rich network with the rich; the poor network with the poor. The rich understands certain money philosophies while the poor considers them as jargons; something too technical to keep or to be considered impracticable. Some of these philosophies are:


The rich knows how to spend money while the poor doesn’t. The rich spends money from his assets while the poor spends money from his income. They are two different things entirely. A poor person earns #1million and spends just like that without looking at his cash flow; the rich, on the other hand, uses the #1million to invest and gets a 18% compound interest per annum. In other words, the rich knows how to multiply money while the poor does not. The poor works assiduously for money while the rich makes money work for him. The rich thinks long-term while the sight of a poor man is limited to his short-term obligations. The rich does not spend money on luxuries except when necessary; the poor feels because he has money, he can spend it anyhow.


The rich is concerned about his real income, the poor is concerned about his nominal income. He does not know the impact of inflation on his income. The poor man is so concerned about the facial value of his income that he gets happy when he gets a raise in his pay check not minding if his real income has been increased or not. The poor therefore serve as an employee. The rich, on the other hand, understands that his life’s dreams are too big to be financed by a pay check. He is therefore an entrepreneur. The poor man acquires different degrees in the university to improve his employability skills, the rich acquires degree to increase his entrepreneurial skills.


There are basically four cash flow quadrants in the business world. They include: Self-employed (S), Employee (E), Investor (I) and Business Owner (B). The rich understands this cash flow analysis very well and is careful as to categorizing his personality in any of the quadrants. The poor belongs to the 1st two quadrants; E and S and he feels satisfied with that, the rich belongs to the last two quadrants, I and B, which are long-term generating quadrants. This implies that, money still comes in even after retiring from business. He therefore gets richer day after day while the poor keep getting poorer. The poor man is conveniently pleased with his job but the rich sees JOB as ‘Just Over Broke’. The rich engages in work and not job. Job is undertaken by instructions, work is undertaken by initiative. The rich plays the game smart while the poor plays the game with utmost care. The rich understand the keys to financial freedom but the poor sees that as absolutely unnecessary.

Conclusively, the real difference between the rich and the poor is not just money, it’s their precepts! The rich invest more in financial education but the poor is comfortable with his academic degrees.


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