February 18, 2009

How the rich get richer

Barrington’s Blog » 2009 » February: "In doing some research about how or what the rich people in America do vs. the middle class and poor people - I’ve found an answer. There is definitely more depth to this post than what is written here, however, there is one quality or set of rules that the rich cling to…and therefore they become richer.
Rich people use OPM.
What is this? OPM stands for Other People’s Money. The rich uses OPM when they acquire property, when they invest, and in return they become richer without ever using their own money. When the rich want to acquire an apartment complex or rental property, they borrow money from the bank, friends, or family to put a down payment on a loan. Then they have the tenants within the property pay the loan balance off in the form of Rent.
Once the balance of the loan is paid off - the rich keep 100% of the profits…
In a nutshell, that is how the rich get richer…they use OPM. Think about your financial position - how are you acquiring assets? Your Investments? I bet you’re funding your 401k using your money from your paycheck. Or are you saving money for retirement yourself?
If you want to be rich - start using OPM."