Posts

Investing like the Rich (The Too Much Money Problem)

avatar of @mojubare
25
@mojubare
·
0 views
·
2 min read

You see, take it or leave it, there are two money problems in our financial lives and these problems are the lack of money and too much money. These problems are experienced by different people on a daily bases, as some people have to deal with the problem of not having money while other have to deal with the problem of where to put their money. A lot of people who have to deal with the no money problem are people in the low and middle class. These class of people are those who get into a lot of debt and while people in the middle class are able to find their ways around their debt, a lot of people in the low income class get into a lot of debt that their net worth is in negative figures thanks to high interest rates of credit cards, home mortgage that they could not afford and other types of debt.

Source

While some people have to deal with the debt live, someone like Jeff Bezos as at the time of writing is worth $201.6B according to Forbes but how do rich people like Jeff get all this money while the poor do not have anything? Unlike the poor, the rich invest in assets while the poor invests in liabilities. The poor invests in things that will take money off their hands and put them in debt while the rich invests in things that will bring money into their wallets and make them richer. Here are a few things that the rich invest in;

Source

Businesses

This is the most important and very expensive thing to invest in but not everyone can start or own a business majorly but it is good to invest in businesses as shares has made it easy to own a fraction of a business. Investing in the stock market gives a person ownership of the particular amount of the company bought.

Mutual Funds

This usually happens when the rich have invested in so many investment portfolios and their investments are now bringing in profits for them but they do not want to keep their funds in the banks as inflation will overshadow the interest on it so investing in mutual funds is a good way to invest this money.

Patent and Royalties

This is when a person get exclusive right to an idea in which people cannot re make, rather they have to pay for using the product when it is made. Investing in patents that will last long is a good way to get royalties and make more money.

Rent and Real Estate

This is the most reliable passive income in the world of investing as people will have to demand for houses and they will need a place over their heads. Not everyone can afford to buy a home and some people prefer to rent a home than to buy one. Getting rent from people is a very good way to make passive income overtime.