The Money Life Cycle of the Poor, Middle Class and Wealthy

The Figure above shows the money cycle of the poor, middle class and wealthy. Let’s discuss it in a more detailed manner.

1.) Poor – as you can see, immediately after receiving their income, they spend it for all their doodads. These people have lots of stuff in their house even if some of those are not needed.

2.) Middle Class – now this one’s a little different. The middle class thinks that buying something like a house or a car will give them an asset. But according to Rich Dad, “an asset is something that puts money into your pocket.” So they pay the down payment and the monthly dues which in turn becomes a liability because it takes money away from their pocket every month....

read more..