We’ve all heard the saying: The Rich Get Richer. Here is why this is, and how you can use this to your advantage – enjoy! Add me on Instagram: GPStephan
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We’re going to start this video off with some very scary statistics…you’ve been warned, I hope you’re sitting down…because this is getting out of hand:
Now in terms of making money, lets first start here, because this is going to make sense shortly: The Federal Reserve. This is the Central Bank of the United States, and their job is to control the quantity of money flowing into the economy.
Having low interest rates CAN stimulate the economy, but generally at the expense of devaluing wages and raising the cost of living. This isn’t always a BAD thing, but what often ends of happening is that the FIRST people to borrow money are often the ones who are credit-worthy, who have money to begin with.
Wealthy people are often the first to borrow money at pre-inflated prices, and as they continue to use and invest with cheap money, they slowly start to drive up prices. By the time everyone else can begin investing, prices have already gone up, leaving them without as much room for profit as the early investors. Hence, the rich get richer.
Here’s what this means for you, and how you can benefit from it:
First, understand that your CREDIT SCORE IS EVERYTHING.
If you’re not already working to improve your credit score, do this RIGHT NOW – get a credit card, pay it off in full, on time, every single month – and get it to the point where you can take advantage of low interest rates to profit from. If you’re confused about how to build your credit, I have a video less than 20 minutes long that I will link to in the description – watch that, and it’ll tell you exactly how to build your credit score.
Second, SAVE YOUR MONEY.
It makes NO difference how much money you’re making, if you can’t save a significant portion of that to invest when you see an opportunity. Even when the stock market plummets in price…if you SAVE your money, you’ll have the gas to put in that Ferrari to go faster than ANYONE ELSE.
Third, INVEST YOUR MONEY
If there’s ANYTHING rich people are good at, it’s INVESTING their money…and it’s INVESTING their money at a time where most people can’t or won’t. These are also the people who invest LONG TERM, and aren’t phased by a drop in prices…rich people don’t panic sell out of fear of losing money, instead, they’ll often double down because their investment just went on sale, and now is an opportunity to invest even more money.
Fourth, THINK LONG TERM.
The BIGGEST mistake you could possibly make is to get emotional about a stock purchase, panic, and sell as soon as it goes down…if there’s anything wealthy investors are good at, it’s buying an investment with the expectation of holding it long term.
By holding long term, this also means you’re less likely to sell at a loss, at a time where maybe you shouldn’t be selling…and many studies have shown that time in the market, not timing the market, has led to the greatest chance of success.
So, yes – to answer the title of this video, the rich have a MUCH easier time getting richer…but once you begin leveraging your money to do all the heavy lifting for you, recessions and low interest rates turn into a sale of just about everything.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com
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