Why Rich become Richer ??????

It is commonly believed that money alone is enough to create more money although it is necessary but not sufficient this can be inferred from the history post world war 2 when Germany broke into two countries west Germany took to capitalism and the east was influenced by Russia so it killed all its businessmen bankers and economists although both west and east were of same economic conditions after the fall of Berlin wall it's clear that west was much much prosperous than east because it nurtured talent who was in the know of money so knowledge is much much superior to money itself let's dwell deeper into what secrets of money do the rich know that makes them richer.

1 Delayed gratification 

The Rich take them less seriously so delay their wants and thereby create assets by foregoing their impulsive temptations the more they delay their wants more money is at their disposal so they create more assets which in turn creates more money 

2 Compounding 

Rich knows the importance of compound interest this is not only seen with money but also in business suppose a movie producer produces a movie each time he risks his capital and can wipe him out of all the profits he made from his previous movies film making is nothing short of gambling hence most production houses end up going bankrupt but think of a youtube channel which puts up important questions to SSC exam every year this channel is visited by unique students but his efforts are made only once but he keeps earning money so compounding even at work

3 Constant learners 

All billionaires will know something of everything all big ideas of the world will be known to them all disruptions will be studied keenly and thus make mental models of everything so learning also compounds this is seen in every walk of their life makes them better decision-makers and also help them to draw their boundaries which they will never cross risk comes only from the unknown even if their circle of competence is small they know their boundaries and stick to it 

4 Taxes 

As they say, the only thing certain in this world is death and taxes so they are diligent to plan their taxes legally to pay less. 

5 Know what is an asset and liability 

In the 1980s  car was an asset as its production was low it could have been sold at a premium even after using for years but now the car loses 10% of its value when out of showroom so the definition of assets keep changing over time will the same repeat to the house when its supply increases over time only time will answer 

The rich buy assets and the poor buy liabilities,

Just an anecdotal explanation in 1993 TV bought at the house was 12000 which for which plot  at Ayyappa Nagar was available but instead, Infosys share bought for same money would have been 5 crores fetching 10 lakhs in dividends all this for one TV but knowledge of converting a tv into shares is not lucked its hard work for which you will be rewarded (Yes its hindsight bias cant help:))))))))))

6 Inflation 

Rich know that inflation is a real wealth destroyer and take it very very seriously. Imagine you are cruising upstream in a ship wading against the stream it is natural that for you to move forward your speed has to be more than the opposing stream so the inherently present stream has to be opposed relentlessly for you to move forward 

So is in the case of inflation which acts as an opposing stream so your money has to grow more than inflation for you to move forward or build wealth 

7 Separate income-generating asset from the non-income generating asset 

Some assets will have only capital appreciation which you will have to sell to realize profits like gold or site some appreciate in capital and also generate income like shares they appreciate in value and also generate dividends (although stock picking and valuation is not easy ) so they create more of income-generating assets from which they buy more assets:))))))

Along with this, if they keep good health make insurance, and constantly study about making money

Don't they deserve more money for what they do ????

PS: Rich and wealthy is interchangeably used