Difference between Rich and Poor people
Probably the #1 reason according to Jim Rohn
Welcome back!
There could be multiple reasons or differences between Rich and Poor people in becoming.
One major reason I heard from one of Jim Rohn’s videos is that:
Rich people save and invest from their income and spend the rest. Poor people on the other hand spend their income and save or invest the rest.
Based on this, the recommended approach to accumulate wealth and join the Rich group is to save or invest (pay ourselves) first and then spend the rest.
For example:
If you make $100, you should at least save 10%, invest another 10%, and donate to your choice of charity or church another 10%. Now you are left with 70% of your money to spend.
You can increase the savings and investment amount depending on your income level but you should never spend more than 70% of your income.
FYI: It doesn’t matter how much money you are making right now. What matters is the philosophy change to decide to pay yourself first and also the discipline to follow through.
Happy savings and investing.
