Comments: Rich Getting Richer, Faster; The Formula is Simple

Here's a comment that was made to my post titled Rich Getting Richer, Faster. In the piece I noted that the fact that the rich are getting richer really shouldn't be a surprise to anyone. I said that because of the power of compounding, once the "rich" get a certain level of assets, those assets alone start earning more than the poor do at their jobs. As a result, the rich get richer faster than ever.

This commenter agreed and added a few extra thoughts I thought were worth posting:

Good Post. So many try to make it look like the so-called "rich" have somehow gotten that way through spurious means.

Instead it is the long-term outlook, coupled with deferred gratification that makes those who are called the rich that way.

It is simply a matter of investing more than you consume over a long period of time.

As I said at the end of the original piece, the pathway to wealth is rather simple:

1. Spend less than you earn.

2. Save/invest a good portion of your income as a result.

3. Repeat steps 1 and 2 over and over again for a long, long time.

Comments

[thc]

Many folks seem to believe that wealth is a zero-sum game; that one can only acquire it at the expense of another. This just ain't so.

[Bellen]

Why is it so hard to realize that in order to get financially ahead you must spend less than you earn? And yes, been there, done that.