The Number One Reason The Rich Get Richer

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A few years ago I was working for a company that was struggling financially. We all knew things were not going well for the company. It was in the transportation sector and the downturn that part of our economy suffered after 9/11 was just enough to push the weak company over the edge.

I had seen the writing on the wall a few months before the end and talked to my wife about looking for another job before it got to that point. We decided to stick it out. We had our reasons.

In the end we all lost our jobs. I was the operations manager so I was literally the last one out the door at 10 PM on that Friday night. The company was to be bought out by a competitor so we were told to come back on Monday and there’d just be a different name sign out front. However I got a call first thing Saturday morning from my boss telling me that negotiations had fallen apart during the night and Monday we’d all be cleaning out our desks.

He later told me that day of making calls was the worst day of his life. I believe it.

All of us who worked there walked out with nothing. We had folks who’d worked for the company 30+ years. Their pensions disappeared over night. It was very bad.

Fortunately for my wife and I we already knew the number one reason the wealthy continue to build their wealth while the rest of the vast masses of mediocrity just barely scrape by pay check to pay check while their credit card debt slowly grows out of hand.

And what is that one thing the wealthy do differently? Read more

Popularity: 5% [?]

Tags: Finance, Cash Flow, Income, Multiple Income Streams

One Simple Change That Will Increase Your Financial Success

One of the biggest differences between people who are financially successful and the vast majority of the rest of the masses of people just making it living paycheck to pay check is that financially successful people know where there money is coming from and where it is going.

The equation is simple. It looks like this:

Income - Expenses = Cash Flow

If our Expenses are greater than our Income then our cash flow will be negative and we gradually slide deeper into debt.

If our Income is bigger then we accumulate money and we have extra to save and invest toward our financial success.

Most folks have a reasonably good handle on the first part. They know they get paid on Fridays. They know they make so much an hour or so much a year.

But often that is as far as it goes.

Read more

Popularity: 3% [?]

Tags: Finance, Cash Flow, Expenses, Income