Rich Man vs. Poor Man

Everyone wants to be rich, yet how can some people become rich and others cannot?

The main difference between the rich and the poor is that the rich have their money work for and the poor work for their money. Now you've probably heard that a bunch of times, so what exactly does it mean. It means if someone has $1,000 they invest it and turn that $1,000 into $1,035 the next year and on and one. Obviously, that is a small example of a 3.5% savings account, yet effective. If someone had 3 million dollars and they put it into a CD account they could make $105,000 per year of off interest alone. That is truly amazing yet how do you get to have an extra 3 million dollars laying around? That is where smaller and riskier investments come into play. Such as real estate, stocks, crypto, etc... One goal is to save up 3 million dollars and put that into the cd account and then you can retire. Let's say you have 10 years before you want to stop having to work and worry about money, that means you would need to save $300,000 per year. You can break it down even further and figure out how much money you truly need in a year to cover your expenses without having to work and go from there. on average most people only need $36,000 per year. So that means you would only need 1 million dollars. That would be $100,000 per year saving for 10 years. That is still a lot yet much more doable. It just comes down to the person and how they plan to live their life as well as what level of risk they are comfortable with.
-Best of Luck, Nick G.