Personal Finance

Personal Finance – Why Rich Are Getting Richer?

This topic has been quite popular in Quora and decided to write a blog post about it. I always try to share everything I know about the money and personal finance, and I think this is one of the most important ones. By understanding the difference between poor, middle-class and wealthy, you can develop a rich mindset and start your way towards financial freedom.


Poor people are buying stuff, a lot of it. If you are visiting in a house whose owner has so-called “poor mindset,” you have probably found out that their apartment is filled up toys, gadgets, cups, mugs, etc. They are using all their money to buy this stuff. Also, they spend their time in front of the TV watching some stupid reality tv-show or purchase stuff from TV-shops and most of the cases if you say something about their habits, they are not willing to even listen to you.

Does this look familiar?


Middle Class

The middle class is buying liabilities. Like cars, boats, paintings, big houses and they think that these are assets. The middle class usually is quite well educated, and they have a good job, but this is their only income source. So, they need to very long hours to cover all their expenses. In the end, all of these liabilities are taking money out from your pockets, not putting it in.



Rich are buying assets. These assets put money in their pocket. Like stocks, bonds, real estate (which is rented), etc. They always educate themselves a lot and most of the cases they read a lot. Also, they follow the 4% rule (I will cover this 4% rule in my coming posts).

“In the real world, the smartest and the richest people are people who make mistakes and learn. In school, the smartest people don’t make mistakes.” – Robert Kiyosaki