Making Money From Investments Through The Kampung Way - Kampung Investor Dot Com

I am sure many of you have heard this statements before, the rich get richer and the poor get poorer. Ever wondered how those rich continue to get richer?

From my point of view there are pratically 4 reasons why the rich continue to get richer.

Capital

The rich will have extra access to capital compared to the middle class people. The rich can invest instantly without hesitation if they see a good opportunity.

A normal man will have to call their bank managers, talk sweet and ask for credit. Not only that, down payment is also a must. So negotiation takes time while the rich is on his way in sealing the deal.

In recession times, only those that can afford to pay back credit will be given credit. Banks will choose their clients wisely and not simply opening new credit lines. So it’s harder to get a loan where the rules are more stringent for those normal person.

Diversify

Diversification is an open tool in investment. Nobody can deny this fact.

The rich will do better as they have a more diversified portfolio compared to an average person. An average person might be allocating 50% to 95% of it’s funds in paying off their car and homes.

During bad times, if a moderate person looses his or her job, the problem of settling their home and car loans will be a major headache. The rich will just sit on their investment no matter rain or shine. Not only that, with the extra capital they can even diversify more when the right time occur.

Decision making

The rich makes most of their decision themselves. They don’t depend on others but depend on their own trust and intuition.

Thr poor moderate guy meanwhile have to ponder on many things before making a decision but the rich will just go ahead with what they have decided.

The rich makes full use of others
Most of the time, the rich people are opportunist. They will suck every drop of blood they can. In short, they are like vampires.

I am sure you are aware that most of the time, the rich people are bosses. They will make use of middle class people by working for them and pay peanuts and expecting you to work like dog. That’s how they work things so accumulate more wealth.

Enough said on those day light vampires. I am sure most of you will understand that.

So now you know why the rich get richer and the poor get poorer. There are reasons those rich are getting richer and it’s not that they don’t deserve it but that’s the way things works.

Don’t be dishearten by this facts but work hard to achieve your goals.

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