The wealthy are willing to spend their time and effort to find the things that will work out to pay off in the long term. They see every dollar as a ‘seed’ waiting to be sown. This is why they work hard to gain assets such as investments in stocks and bonds. They understand the concept of risk and reward and acquire assets that they believe can reward them sufficiently for the risk they take.
The impoverished, on the other hand, are skeptical towards risks. They rather work hard for their guaranteed return even if it means little. Often, they have almost zero risk tolerance and hold on to a mindset of constantly finding low risk investments. As a result, they don’t see the value in acquiring assets such as investments and instead ‘focus’ on acquiring liabilities such as credit card bills by spending money on unnecessary items. This is why they end up working for money when the wealthy are making money work for them.
Take some time to think about this. Who are the ones, around you, investing in marketable securities? Are they people who are enjoying better things in life? Or are they the people who are struggling to pay back their debts?
And did you know? Salaries have a higher tax percentage as compared to Singapore tax-exempt dividend incomes and other investment incomes. The higher the tax, the lesser you’ll receive. And that is one of the reasons that makes dividends and other investments so appealing to the wealthy.
To maximum your revenue flow, you can take a fixed portion of your monthly income and invest it in an investment. ETFs can be a relatively safer choice to start with, since they are generally less volatile than stocks. By doing so, you will be using your money to grow more money, thus creating a continuous flow of income. How nice is that, isn’t it?