Money

1 Reason Why People Get Rich

wealth
Written by Sean Collins

What makes the difference between accumulating wealth and generating debt; between being poor and being rich? As you’ll see, there’s just one decisive moment you need to reach to switch from debt to wealth in a matter of a single day!

The process is fairly simple and it does happen in a matter of an hour – once you realize all the benefits of our current societal setup we know as the monetary-market system.

Contrary to general belief, current market system, while seemingly corrupted and wrong, is, at the same time, the most advanced one this species has ever built. Unlike all previous establishments such as realms dominated by the central figure of an emperor, this relative novelty allows anyone to accumulate more than the one really needs – regardless of the one’s origins and/or possible connections with the court.

Those who figured that out switched from struggling to meet the ends to struggling to count all the money arriving their way.

The principle of wealth generation is simple.

wealth funnel principleIf you imagine a large reservoir (or a funnel) with one hole at the bottom, where the liquid drains out, and one hole at the top where the liquid pours in, your immediate responsibility (goal) is to ensure that:

  1. The top hole is much, much wider than the bottom one
  2. There’s an unobstructed and abundant flow of the fresh liquid through that top hole.

Although, the built-in security features are allowing you to stay financially liquid over the extended period even if the situation is reversed. Namely because of the Institute of debt and the sole nature of the money game. You can theoretically keep loaning money from the banks until the last breath you take, ensuring your financial liquidity and thus, the survival itself.

But that’s not the kind of life you imagined to live.

What you want is to ensure the positive difference between what comes in and what goes out. And that’s the Holy Grail for every man who becomes determined to win the money game.

That game has only one rule.

And that rule is simple: you play the money game offensive and not defensive. In other words, for you to win in any game, you have to attack.

Staying in constant defense only generates additional debt.

Once you realize that, it’s all about waiting for one significant moment.

The Breaking Point of the Money Game

The difference between rich and poor is obvious:

  • Rich generate surplus
  • Poor generate debt.

As we said, in either case, financial liquidity is not an issue. But the state of debt affects the well-being by accumulating elevated negative stress. And we don’t want that.

However, to avoid any prolonged exposure to debt, one has to create the environment — using available resources — to tip the scale in favor of wealth accumulation.

That environment is created by applying the “reservoir principle.”

In one moment, it will happen and will shift one’s direction, inevitably setting his life on a growth trajectory path.

The sequence leading to the breaking point and subsequently the wealth:

  1. A person starts accumulating money after ensuring the steady influx of fresh capital while minimizing the radius of the hole at the bottom. It’s simply the unavoidable strategy at the beginning of the game to create a positive balance. That’s the Breaking Point of the Money Game. More comes in than it goes out.

 

  1. Once you start seeing the upward trend of your balance (net worth), it will start acting as a high. The dopamine levels, along with serotonin firing will peak like that first few times you had sex.

 

  1. As time goes by, you’ll become borderline addicted to wealth accumulation.

 

  1. After a while, the entire situation evolves into a habit. Money becomes just a consequence of your numerous activities. The entire money generation process switches to auto-pilot and becomes fully automated and unintended.

 

It’s the moment when you can say that you are rich. And it’s that one simple reason why people get filthy rich!

 

Which raises a simple and obvious question:

How to switch trends?

Because it seems that no matter how hard you’re trying, the bottom hole is twice as large as the top one. To make things worse, the drainage never stops while the limited influx of fresh capital occurs once or twice a week.

But that strategy is unavoidable. You simply must reduce the drainage of the liquid at the bottom ASAP!

You do that by creating a negative pressure inside the reservoir.

What happens when you suck the liquid into the straw and at one point, you seal the top with your tongue?

The liquid stays locked inside the straw, even though there is a wide opening at the bottom for it to escape back into the glass.

In other words, by entering deeper into the debt, you may — if you have a clear perspective of how the money you bought with interests will generate the surplus — reverse the situation.

That means that the money you saved or borrowed must be invested, one way or another. One way is a direct investment in your own endeavor, another is investing in third party’s projects.

And that’s the main purpose of money or one out of two ways to stay out of debt.

The other way is pretty obvious: you continue selling your labor for a fixed monetary compensation while making sure that your expenses NEVER exceed the income.

Then again, what if you lose your job?

About the author

Sean Collins

An investigative journalist with the thing for business, confidence, societal, and human behavior topics. The straightforward guy with the opinion that doesn't always agree with the mainstream. We call him Choozo. Cuz he's picky. About freakin' everything.