Why do the rich get richer?

We all hear how easy it is for the rich and how effortless they seemed to have acquired their wealth. What most people don’t realise is that there are certain principles and rules that guide the rich in contrast to the less fortunate of us. The first and probably most prominent characteristics of the rich, is how they handle themselves under pressure and setbacks. First contributing factor of the rich becoming wealthier is Persistence. The number one factor why the rich keep their wealth from generation to generation. They lack the sense of failure and giving up, this makes them even stronger and even richer because they learn from their mistakes.

The second contributing factor is Mental Capital. Haven’t we all heard stories of the likes of Donald Trump going bankrupt and become indebted in millions and millions of dollars only to resurface even stronger! How is this achieved I here you ask? Well the rich have a firm belief of “mental capital” being the real capital in their life. They don’t need physical capital to create money, their ideas and their thought processes is what accumulates money.

Next follows Time Management. The rich are very focused on what they do, and how they spend their time. They recognize that time is one of the Most precious commodities they have, so they spend it wisely and effectively. They keep themselves informed and learn new skills to stay Competitive. This is in contrast to what a lot of people believe about the rich, where the common misconception is that they don’t really do anything except play golf, go shopping and travelling around the world. I would say they do all that, but it’s a very calculated process. They are in control of there time, not the other way around.

And lastly Vocabulary. The rich knows and understands that words are power and ultimately wealth. By having a rich vocabulary, they empower themselves with words that attract wealth. Examples of this might be financial terms like compounding, present value, internal rates of return etc. These words automatically put them in a higher standing with their stakeholders such as bank managers, investors etc. So essentially they are buying themselves credibility and good standing by using complex financial terms. They also empower themselves with using positive words like success, vitality, vibrant, healthy, unstoppable etc. These words act like a cycle of success and by using these words daily they establish a habitual pattern that I would call the “cycle of success”.

These are the core reasons I believe the rich get richer. And in most cases they communicate the same wisdom to their children and grandchildren in order to “preserve wealth”.

Imran writes on marketing and business related issues. You can learn more by visiting my blog, http://Online Marketing Systems

Wealth - Why You Will Need a LOT More Money in the Next Few Years Just to Maintain Your Lifestyle

Have you noticed that the price of everything is always going up? Almost everything that we do is tied to the price of fuel. It is the single main thing that drives our world economies. When the price of a barrel of crude oil goes up then so too does just about everything else. That packet of your favorite biscuits has to go up too, maybe just a few cents. However, when your shopping trolley contains a hundred or more items and everything goes up by just a few cents every couple of weeks then that, over a period of a year, translates into hundreds, if not thousands, of dollars.

You see, in the case of the biscuits that single packet is just one in a large carton. Several large cartons form a pallet. The pallet is then loaded onto a truck and trucked along the freeways and highways to a distribution centre where it is unloaded and put on another truck to reach your local supermarket. The cost of fuel is averaged out then attributed to each and every item that is delivered. So, when the cost of fuel rises, so too does everything that is trucked.

When the price of everyday household items, including food, rises then that affects the inflation rate. Banks then become jittery and seek, via the federal reserve, to raise interest rates. This has the effect of dampening spending. So, interest rates rise making repayments to mortgages and overdrafts and credit cards cost more. But people still have to eat. They still have to buy food to survive.

We now have a situation whereby the cost of living has risen and the amount of discretionary spending has compressed. The budget of most families is squeezed even more. It becomes harder and harder to maintain the same standard of living.

This is going to continue for as long as we rely on the dwindling reserves of fossil fuel. Whether the fuel reserves are, in fact, dwindling is largely immaterial. Governments will seek to keep the cost of fuel as high as they can because they all derive large tax revenues from every gallon or liter that you put in the tank of your motor vehicle.

So, what is the solution? Sadly for wage and salary earners there is nothing much that they can do - except for one thing ...

To keep pace with this dog-chasing-its-tail economy you need to have a method for creating wealth OUTSIDE your normal weekly, fortnightly or monthly pay-packet. The traditional pay-packet for a vast majority of the population just isn't going to cut it for much longer. Inflation is going to well-and-truly outstrip what most people are being paid. Passive income is the ONLY way that you will be able to win this race.

I have been writing about this and passive income techniques for more than two years now. Every month I am becoming more and more convinced that this is the only way to fight back against the current and looming pressures of world economies. If you are not engaging in passive income techniques, supported by your active income (pay-packet) then very soon it won't be a case of whether you will be able to breakeven or not. It will simply become a case of how far you are going to fall behind.

If you don't want to look after your ability to house and feed yourself and your family by yourself through PASSIVE INCOME techniques then the only thing to do is to run to your boss every few months and keep asking for another pay rise. Good luck with that!

Gary Simpson operates the Turn Debt Into Wealth website. To learn what you are REALLY worth and how to create a PASSIVE income visit: "How to Save $1000's and Increase Your Net Wealth." You can also discover "How to Stop Wasting Your Life and Start Getting What You Want."

The BIGGEST Wealth Secret That Anyone Can Ever Tell You

Wealth secrets. I don't know about you but every time I see words like that in the title of something then I just have to have a look. You see, if there ARE any secrets I want to know about them. So I keep my eye out and my mind open. I read everything I can about making money. So, I have seen a fair few so-called "wealth secrets" in my time.

As far as I am concerned the best "secret" that I have seen is passive income. This is the income that just keeps flowing to you day in and day out without you having to do anything for it. I think it must be a wealth secret because I don't know too many people who are taking advantage of it.

Passive income can come in the form of franchise fees, commissions, investments, royalties, capital growth, shares, property and trusts. Basically, passive income is anything that will allow income to flow to you while you do something else. That "something else" can be working your normal job hours or even sleeping. You see, a passive income stream doesn't rely on what YOU are doing while IT is working.

I often call passive income wealth by stealth. That makes me laugh. I see this image of getting wealthy by being sneaky. But there is nothing sneaky about it.

Passive income is merely the clever person's way of accumulating money.

Who ever made the law that says you have to work hard for money? That is what poor people do. They trade an hour of their time for $10 or $20 or $30. How can you ever get rich doing that? Eventually you run out of hours in the day to trade. Active income is limited by the hours in a day. Passive income doesn't rely on any number of hours in any day.

If you want to take advantage of the BIGGEST wealth "secret" then, in my opinion, there is no better way to accumulate wealth than passive income.

Gary Simpson operates the Turn Debt Into Wealth website. To discover how to create a PASSIVE income visit: "How to Save $1000's and Increase Your Net Wealth." You can also discover how to prime your mind for wealth by visiting "How to Stop Wasting Your Life and Start Getting What You Want."

A Powerful Way To Increase Residual Income

Residual income is in the domain of the rich. While most people earn money proportional to the hours they spent working, the rich earn their money on a completely different way. Residual income is income that effectively generates itself and by doing the work once, you keep earning money for it over and over again. Imagine you can go to the office for a week and keep earning money for that working week for the rest of your life. To really improve your financial situation significantly you must seek out ways to increase residual income and change the way you look at earning money. After all, you don’t want to work so much that you can’t enjoy the money that you do earn.

The concept of residual income is alien to most people, especially for ‘nine to fivers’ who only know how to earn linier income where they work ‘x’ amount of hours and then get rewarded for it accordingly. The rich, however, earn residual income and they do not spend their time and effort working for money. They spent their time and effort building systems which in turn will do the WORK FOR THEM long after they completed the initial work setting up the system. The best part is that it will keep earning them money for a lifetime and beyond. Residual income is about working smarter and not working harder. It’s a completely different way of approaching and looking at wealth and earning money.

When you increase residual income, you increase your freedom and independence. When your residual income exceeds your expenses, you are financially free - meaning that regardless of whether you work or not, you will be able to maintain your lifestyle. The very fact of knowing that regardless of whether you work or not you will have no money concerns is indeed very liberating. Money is the one thing that can really drain people emotionally and if you ever though money is not important, then try not having any – it can consume al your thoughts.

Earning residual income sounds great and being financially free is indeed a great concept, but this begs the question of how you increase residual income in your life. There are many ways, but the important point is to start a.s.a.p. Earning residual income is about getting hooked on purpose. Once you get a taste of how great it is, it will compel you and encourage you to keep working on ways to increase residual income until you are financially free.

The most popular way to increase residual income is through real estate. If you buy a property and rent it out you can keep getting residual rental income without actually having to do anything. Similarly you can invest large amounts of money and earn residual income with the returns on your investment. Unfortunately, both these methods require significant amounts of cash and most people starting out on their journey to financial freedom simply do not have this.

Another great way to increase residual income in your life is to write a book, a song, a play or the script for the next Oscar winning movie. When you sell the rights to a publisher or producer, you will earn royalties month after month for the rest of your life. This is a very real and very powerful way to increase residual income and one that you can easily explore. It is not easy though. It requires a lot of time and a lot of talent and persistence.

There is however an alternative solution for the ordinary person looking for a no-fuss way to increase residual income. The answer lies online and I believe this is the golden highway for those who are committed to financial independence in the 21st century. It’s true that making money online has become a bit of an over-hyped idea, but it really does offer virtually anybody the opportunity to earn residual income – and lots of it. With or without a business you can turn to the internet to increase residual income through affiliate programs. If you already have a product or service, you can offer an affiliate program to leverage your own efforts and increase residual income. If you have no product or service you can take a piggyback ride on some of the most successful products and be rewarded for your efforts. You need virtually no money, very little time and only a basic knowledge to get started and gradually you can work yourself into a position of total financial freedom.

The internet is the ideal place to set up systems where you do the work once and it keeps working for you. It’s become so easy to automate virtually anything that you can set up certain systems in as little as half an hour. These very systems can continue to earn you hundreds of dollars each and every month - and all it took was half an hour’s work!

It really is true that in life we all ‘can’ – they real issue is whether we ‘will’. The answers are all out there and today they are more freely available than ever before. Regardless of how you choose to make your living and spend your time, when you increase residual income, you increase your lifestyle for life. It’s up to you. You can either work harder or you can choose to work smarter.

Article by Sincere-Advice.com

If you found this article please visit http://www.sincere-advice.com/residualincome.html to learn how you can set up multiple streams of residual income and leverage some of the best online strategies for earning residual income in your free time.

Money Making - Why So Many Intellectual Minnows Are Making So Much MORE Money Than YOU Are

I'm sorry to tell you this but there are so many people out there who, in comparison to you, are intellectual minnows and yet they are able to accumulate vast sums of money. How does that make you feel?

Maybe you are operating under the false belief that you have to be really clever to make lots of money. It just isn't true. I guess you know of some people who cannot even string two intelligent sentences together and yet they make millions.

There are so many people who have a very limited education who are making so much money that it would make your head spin. So, how do they do it? Some of these people even hire people like you to do things for them that they know they simply cannot do for themselves. How is this possible?

These people all have one thing in common. The have this quality called determination. Determination will beat just about everything else including talent. Sure, you need a method - something that will produce the money when you apply effort. There is nothing that supersedes determination. With it you can do almost anything. Without it you can do virtually nothing.

Perhaps the best thing that you can do to set up you financial future is to admit to yourself that you could certainly do a lot better than your history shows. Yes. You can do better. You can do a LOT better.

It's NEVER too late to start afresh. Your financial fortune can turn around very quickly if you are prepared to take responsibility and seek some good unbiased advice. But... will you? Will your silly pride keep denying you? That is something for you to ponder upon.

Gary Simpson operates the Turn Debt Into Wealth website. Discover "How to Stop Wasting Your Life and Start Getting What You Want." To learn more tips on how to save money and how to make money go here: "How to Save $1000's and Increase Your Net Wealth."

Compounding Effect - A Lesson on How Money Makes Money

If only I had learnt about the compounding effect of money when I was a teenager. I had heard of the seven wonders of the world, but no one ever told me about the eighth wonder, the effect of compounding. Not matter if you are young or slightly older, read on to discover how money can make money.

The compounding of interest earned is one of the most critical lessons that should be learnt by everyone. To explain the effect of compounding I will use a brief example. If you take $10,000 and receive 6% interest over one year you will receive $600. If you reinvest the $10,600 in year two, you will receive $636 interest. In year 3 you will receive $674 interest and this amount increases each year, so long as you re-invest the capital and interest each year.

The next step and even more effective way to use the compounding of interest is to contribute additional money, for example $100, each month to the capital and interest amounts. This will assist in fast tracking your wealth more quickly and has the effect of growing your capital amount at a rapid rate.

Instead of the investor earning interest on principal, they earn interest on principal and interest, year after year after year.

If you start early in life, this can have a dramatic effect on the capital growth over time. If an 18 year old invests $100 per month and earns 6% interest until the age of 65, they will have accumulated $313,187. They would have invested $56,400 in this time, a profit of $256,787. However if the same person started investing at 25 years of age, they will have accumulated only $199,149. They will have invested $48,000 in this time. So by starting 7 years earlier and investing $8,400 more (7 years x $100/month) they will have accumulated $114,038 more at 65 years.

It is crucial that we teach the compounding effect to everyone in our lives as it is THE KEY to future financial success for most of us. For the sake of some short term pain by putting away some money, we can experience terrific long-term gain. Do not be tempted to withdraw from the interest earned each year as this will negate the effect of compounding and will limit success with this strategy.

One of the best things about the effect of compounding interest is that it does not discriminate - EVERYBODY can do it, no matter whether you are rich or poor or where you live in the world. The big decision is when to start and I urge you all to start today.

You can read more information about the affect of compounding and see some great tables that clearly illustrate the effect of compounding at http://www.achievesuccess.com.au/money/compounding_effect.htm

If it is wealth creation opportunities you are after then check out the life-changing information at http://www.achievesuccess.com.au/money

Start compounding your interest today and make the most of this 8th wonder in the world.

Why You Should Take a Rich Person to Lunch and Pay for the Lunch

You should take a self-made rich person to lunch whenever you can and you should always pay. Why? Read on and all will be revealed.

Let's take a look at the first part first. Why should you take a self-made rich person to lunch?

The self-made rich don't get there by accident. They weren't broke up until one day when they went to their mailbox they found that someone had left them a check for a few million dollars. The self-made rich got rich because of what they know, how they think, what they do and how they do it.

Do you think that if you knew what they know, thought like they thought, and did the things that they do, in the same way that they do them, that you too may become rich? I think that you would find that indeed you would become rich by following that formula.

But why take them to lunch (or dinner)?

The self-made rich have learned that their time is very valuable. You may be able to buy some of their consulting time but it won't come cheap. For example, my standard consulting rate is $2,000 per hour and I know people, far richer than me, who charge $20,000 for an hour, or more, for their time.

But even the rich have to eat sometime. If you can be fortunate enough to find a time when they are eating, and it is not a business lunch, then you may be able to share that time over a meal and learn a tremendous amount without paying the huge consulting fee.

Also, when that rich person is having lunch he is probably more relaxed and open to conversation.

What do you think a self-made rich person likes to talk about? You will probably find that his two favorite topics of conversation are himself and the things that he is doing to make money. The self-made rich get that way by following their passion and learning how to leverage that passion so that it provides them with a large amount of money.

If, after a brief rapport period, you ask him a question about himself or his passion then you will probably get a flow of incredibly valuable information, which you should write down. Don't be afraid to ask clarifying questions. Asking clarifying questions is a good listening skill and it shows that you are interested in what the speaker is talking about.

Okay. Why should you pay for lunch? After all, that rich person can afford to pay much more easily than you can.

In order to become rich you have to develop rich thinking. Expecting a person who has just given you a fortune's worth of free information to then pay for his own lunch is definitely poverty thinking. With an attitude like that you will never become rich.

Rich people know how to give and how to receive, and above all they know how and when to show appreciation and gratitude. By developing those same qualities in yourself you will open your mind to the style of thinking that will allow you to also become rich.

You may be thinking "but what if I can't afford to buy lunch?" All the more reason why you need to develop rich thinking or you'll continually find that you can't afford to buy lunch.

Poor people tend to have a hand out mentality. They expect the government and the rich to pay the bills and they always have their hand out for something for nothing. Something for nothing is 100% poverty thinking.

The rich understand the law of reciprocity. That law states that you reap what you sow. You have to give in order to receive. Most rich people are getting rich by giving valuable solutions or happiness to a large number of people.

For example Bill Gates, through his company Microsoft, has given hundreds of millions of people the opportunity to use a computer without the need to understand how to program a computer. In return for helping so many people, he has made an enormous amount of money. It's the law of reciprocity in action.

The average person has helped virtually no-one and in fact expects others to help them whenever they need help. As a result they are broke.

I suggest that you read this article a second time and think about what is being said. Then, if the message is sinking in, think how you could take a self-made rich person to lunch or dinner and pickup the tab.

YOU can be successful in all areas of your life! Acclaimed Author & Success Coach, James Delrojo will show you how to turn your life around in just 30 days and unlock the flood gates of success. You Deserve Success!

Go to http://www.SuccessIn30days.com