What The Rich Do 2

2.) THE RICH INVENT MONEY: THE RICH KNOW THE DIFFERENCE BETWEEN AN ASSET AND LIABILITY. THEY OFTEN GO AHEAD TO BUY ASSETS. BUT THE POOR/AVERAGE CLASS ACQUIRE LIABILITIES, BUT THEY THINK THEY ARE ASSETS. AN ASSET IS ANYTHING THAT PUTS MONEY INTO YOUR POCKET. A LIABILITY IS ANYTHING THAT TAKES MONEY OUT OF YOUR POCKET.

THE RICH ARE FINANCIALLY LITERATE. THEY MAY NOT HAVE GONE TO SCHOOL TO GET FORMAL EDUCATION. BUT THEY LEARN HOW TO APPLY FINANCIAL LITERACY TO THEIR LIFE. FOR THE POOR/AVERAGE CLASS, MORE MONEY LIKE A PAY RAISE, INHERITANCE, OR LOTTERY WINNINGS WILL NOT SOLVE THEIR MONEY PROBLEM. THEY SOON RETURN TO THE SAME FINANCIAL MESS, IF NOT WORSE THAN THE MESS THEY WERE IN BEFORE THEY RECEIVED THE MONEY. THUS, THE OLD SAYING "A FOOL AND HIS MONEY IS ONE BIG PARTY." I THINK, ONE BIG PARTY SHOULD COME FROM THE MONEY HIS ASSET WILL PRODUCE. IF A RICH MAN WANTS TO BUY A HOUSE OR A BIGGER HOUSE, HE BUYS ASSETS THAT WILL GENERATE THE CASH FLOW TO PAY FOR THE HOUSE. A SIMPLE OBSERVATION IS THAT:

THE RICH BUY ASSETS.
THE MIDDLE CLASS BUYS LIABILITIES THEY THINK ARE ASSETS
THE POOR ONLY HAVE EXPENSES.

BEFORE THE RICH INVENT MONEY, THEY HAD TO STAY AWAY FROM BUYING DOODADS (ITEMS THEY REALLY DO NOT NEED). THEY LEARN FINANCIAL LITERACY AS A CONSPIRACY OR AMONG THEMSELVES. THEY BUILD A CASH FLOW SYSTEM/PROGRAM/STRATEGY/SCHEME. THEY OFTEN LEARN HOW TO INCREASE THEIR FINANCIAL INTELLIGENCE. THEY TAKE WHATEVER HAPPENS AND MAKE IT BETTER. THEY CREATE LUCK. JUST AS MONEY IS. THEY LEARN HOW TO BE LUCKIER, THEN MORE MONEY GOES TO THEM. THEY KNOW THAT MONEY IS NOT REAL, SO THEY TRAIN THEIR MOST POWERFUL ASSET, WHICH IS THEIR MIND. THEY INVEST THEIR MONEY. AND CHOOSE THEIR ADVISORS WISELY. THAT'S ALL THEY DO TO INVENT MONEY.

3.) THE RICH PAY LESS FOR TAXES: MOST OF THE RICH ARE EMPLOYERS, BUSINESS OWNERS (A COMPANY WITH MORE THAN 30 WORKERS ALL ROUND), OR INVESTORS. MOST POOR/MIDDLE CLASS ARE EITHER EMPLOYEES OR SELF EMPLOYED.

EMPLOYEES EARN AND GET TAXED ON ANYTHING THAT IS LEFT (E.G. A SALARY OF N50,000 IS COLLECTED AS N44,000. PAYING N6000 TAX. N6000 MULTIPLIED BY 12=N72,000 A YEAR). THE RICH OWN CORPORATIONS TO PROTECT THEIR ASSETS FROM CREDITORS. WHEN SOMEONE SUES THEM, THEY ARE OFTEN MET WITH LAWYERS OF LEGAL PROTECTION, AND OFTEN FIND THAT THE WEALTHY PERSON ACTUALLY OWNS NOTHING. THEY CONTROL EVERYTHING, BUT OWN NOTHING. CORPORATIONS ARE ALLOWED TO PAY FOR EXPENSES BEFORE PAYING TAXES. THEY UNDERSTAND THE SCIENCE OF SUPPLY AND DEMAND. ALSO, THE ABILITY TO READ AND UNDERSTAND FINANCIAL STATEMENTS, WHICH ALLOWS THEM TO IDENTIFY THE STRENGTH AND WEAKNESSES OF ANY BUSINESS.

THE POOR THINKS THAT TAXES WERE MADE TO PUNISH THE RICH. JUST LIKE THE STORY OF ROBIN HOOD. STEAL/TAKE FROM THE RICH AND GIVE TO THE POOR. BUT THE POOR & MIDDLE CLASS PAY HIGHER TAXES THAN THE RICH. THE MIDDLE CLASS THINKS THAT THE RICH ARE CROOKS WHO SHOULD BE MADE TO PAY MORE TAXES. THE RICH THINKS THAT GOVERNMENT WORKERS ARE A PACK OF LAZY THIEVES.

THE RICH ARE CAPITALIST. AND TRUE CAPITALISTS USE THEIR FINANCIAL KNOWLEDGE TO SIMPLY FIND A WAY TO ESCAPE. A CORPORATION PROTECTS THE RICH. A CORPORATION IS MERELY A FILE FOLDER WITH SOME LEGAL DOCUMENT IN IT, SITTING IN SOME LAWYER'S OFFICE REGISTERED WITH A STATE GOVERNMENT AGENCY. THAT'S IT! A CORPORATION IS JUST A LEGAL BODY WITHOUT A SOUL.

SOLUTION: THE RICH HAVE THE MONEY AND POWER, AND INTENT TO CHANGE THINGS. THEY SEARCH FOR WAYS TO MINIMIZE THEIR TAX BURDEN. THEY HIRE SMART LAWYERS, ACCOUNTANTS, AND PERSUADE POLITICIANS TO CHANGE LAWS OR CREATE LEGAL LOOPHOLES. THEY HAVE THE RESOURCES TO EFFECT CHANGE. BESIDES, THEY TAKE SOME RISKS OF LENDING POLITICIANS MONEY TO RUN THEIR CAMPAIGNS. AND GET MORE ADVANTAGES AFTER WINNING THE ELECTION.