why you’re not rich? There has been constant turmoil between the rich and the poor because of the differences and inequalities between the two classes. Aside from the wealth differences between them, it is vital to understand how the rich can sustain their riches.
the mindset
An essential part of that is the mindset – how one would want to invest and grow in terms of assets rather than mistaking liabilities for assets. Financial literacy allows you to be aware of your business and how to make the most of your money, leading to better money habits. It ensures that you aren’t the one who is working for the money, but your money is working for you.
Money habits mostly
Economic expansion in the UAE is imminent due to the expected event of EXPO2020. 2019 has already welcomed increased business activity as 6,700 business licenses have been issued and the Dubai International Financial Market has already attracted Dh680 million in net foreign investment.
why you’re not rich?
One of the factors that predominantly exists within the mindset of the poor is that they need to earn a large amount of income to be rich.
They don’t necessarily know how to make the most out of their existing earnings and instead feel obliged to save and spend it in the future.
Investing
Investing money rather than spending money is what will give the real value. The rich vs. poor mindset has a significant gap with regards to how they manage the fear; their will to take risks.
Poor people have been saving money and spending it into endeavors that provide them with no return while rich people have been investing money, and earning returns — an intelligent choice, which comes from formal and self-learning about financial matters.
Most poor people usually expect their investments to grow into 10x within a month. This short term goal setting merely causes them more loss than gain, and make them less prone to investing their money anywhere with the expectation of low returns.
why you’re not rich?
A poor person might say something like “I want to save up to buy something in the future,” but a rich person might say “I want to save up for a future opportunity.” The poor mindset is the one that needs some more positive alterations if you want to generate wealth.Rich people, however, make these investments even if the returns are miniscule.
Why, you may ask?
Because returns are returns, no matter how big or small they are. Putting these returns to use in future investments also allows them to expand in terms of wealth. Dedication to thinking about the future and checking in on your long term financial goals are the building blocks to securing wealth and unlocking your potential.
Sustaining riches comes from long term planning and goal setting.
Starting early can be one of the steps to help you produce a hefty amount of return in the long run.
It can start from the smallest of investments with the smallest of returns. It does NOT have to be the biggest investment of your life right away. An example could be that, if someone starts investing a modest (Dh10,000 per year) at the age of 26, assuming a growth rate of 9% per annum, their wealth can grow into millions (close to Dh3 million) by the age of 65.
