Would You Like To Know What The Rich Do Differently To So YOU Can Become One of Them?

 

Why are some people rich and others poor or middle class?  What makes them stand out from the crowd?  What do they do that’s so different to everyone else?  There has to be a difference right?

 

Let’s start off by looking at what the poor do.

 

The Poor are told to get a job (usually quite low paying), and if they’re lucky they will, and that will bring in cashflow.  But what they also have are expenses, and most of us learned how to spend money rapidly at an early age.  And at the end of the week, or month, our pay cheque is gone, with no money having been saved.  I used to live pay cheque to pay cheque, which put me in the category of the poor.  And that is where many Australians are financially.

 

Then there is the Middle-Class.  The middle-class generally earn a higher income and have usually been to university so they could get a higher paying job.  With that extra income there also comes a major expense called tax.  In other words, the more they earn, the more tax they pay.

 

The middle-lass also tend to have bigger expenses, the golf membership, the clubs, they eat at better restaurants etc.  The middle-class also purchase their “biggest asset”, their house.  But what the banks forget to mention to middle-class Australia , is that it is actually the bank’s asset, not theirs, because it’s taking cash out of their pocket each month.  Then they aquire more liabilities, like cars, computers, plasma tv’s etc, which are often purchased on finance.  They then appear to be wealthy when actually they are not.

 

Many people get caught up in appearing to be wealthy, instead of actually becoming wealthy. 

 

These days, anyone can get credit cards, but Mr & Mrs Middle-Class are VIP clients of the bank, and these are the people the banks make most of their money from.  I even know people who earn $1 million a year who fit into this category.

 

HERE IS WHAT THE RICH DO DIFFERENTLY

 

In the beginning the rich will get any job to get them started.  They are not into status and will do whatever it takes.  But instead of focusing on income, they will focus on “real” assets, the things that make money while you sleep, or put money into your pocket.  The first way to build up assets is by saving money, and the reason I live my dreams today is because I became one of the best savers in Australia .  Australia is not a nation of good savers, and we have one of the lowest savings rates in the entire modern world.  One of my goals is to change that.

 

With these savings, we need to learn how to purchase assets which make us money while we sleep.   In other words, our assets will be able to draw out cash, or generate cashflow from our asset column, which will come in as our income.  That means the money comes in without working so you no longer have to rely on a job.  Most of us need to focus on our asset column more.   There are three areas the rich get rich from.  These are business, property and shares.  I call them the 3 Pillars of the Rich and continuously focus on all three to become wealthier.

 

The other area the rich understand is taxation.  The rich earn, then spend their money and lastly, pay tax on what is left.  That is, they run themselves as companies.  Companies pay tax on what is left after expenses, at a lower rate than the middle-class pay.  The poor and middle-class earn money and get tax taken away immediately and then they get to spend what is left, and then they have to try and create wealth out of that.

 

I am Australian and I believe in paying tax, and as a result, volunteer to pay tax in this country.   I am not into simply offshoring money, although I know that has become popular.  I think every Australian should pay a fair amount of tax.  The operative word though, is fair.  What is a ‘fair’ amount of tax?  I do not agree with the amount of tax that most Australians have to pay, especially  middle-class Australians, and especially if you know about credible taxation alternatives other than the GST.

 

Taken from “What I Didn’t Learn At School But Wish I Had” by Jamie McIntyre.  To get your FREE copy and FREE 6hr DVD with more in depth strategies go to http://www.wealthinformation.com.au/dat-dvd.html