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Showing posts with the label Why Rich get richer and Poor get poorer?

Why Rich get richer and Poor get poorer?

If you see the Cash Flow of  average Middle class, we clearly see the income is always less than their expenditure while as the Cash Flow in case of Business Class, the income is always greater than their expenditure and the business class invest money and save upto 20% from their income where as Middle Class people doesn't invest money and doesn't save money. Most important thing is that when Middle class people buy a house and they think it's an asset, after some time when they buy furniture, electric appliances etc for the house, but actually they are buying liabilities. Business class buy assets to generate more income, while as Middle class buy liabilities in the name of assets.