Great post today from Moneyin2 on what makes people rich .. for this and much more subscribe to our free newsletter 👇
I didn’t think much about money in my 20s because I didn’t have any. I graduated from Lancaster University right into a recession, and the only jobs I could get were part-time and minimum wage … I packed boxes at a factory in the mornings and worked behind the bar of a local nightclub called The Sugarhouse in the evening. I didn’t make enough money to pay the rent and at one point I ended up on benefits. There was a particularly grim period of several months where I saved money on food by taking a long bath at lunchtime — the pressure of the water on my stomach stopped me from feeling hungry until it was time for dinner. Fast-forward to 2013. That year, a French Marxist at the London School of Economics published an almost unreadably dense book titled “Capital”, which sought to answer a very simple question: Why are the rich, rich? Thomas Piketty examined tax records for several major economies going back hundreds of years. In each society, he found, the central division between the rich and the rest of us is that the rich get their wealth from assets — stocks, bonds and property — whereas the rest of us get our wealth from our wages. This split between the people who have assets and the people who depend on wages is the driving force of inequality. This all sounds blindingly obvious now. But Piketty demonstrated it with actual statistics which, surprisingly, no one had bothered to do before. Nonetheless, it’s a fundamental insight: Waiting for your boss to pay you enough money to become rich isn’t a very good way to become rich. Read the rest on Moneyin2: https://lnkd.in/esSqYvEC
