Why Invest?

The wealthy don’t work for money; money works for them… Know what an asset is, acquire them and become rich!

Robert T. Kiyosaki, author of Rich Dad, Poor Dad

 

Many people do not understand why they earn more than they used to but still have no money left at the end of the month. They struggle financially because when their income goes up, their expenses also go up. Their assets do not increase, but their liabilities do. They work to increase the values of the companies they work for, to pay government taxes and for banks to pay off their debts.

Working harder means handing over a greater share to these three parties. The rich get richer because their assets generate more than enough income to cover expenses, and part of the income is then reinvested into new assets, therefore increasing the generated income even further.