The thing is that it's so much easier to make money when you have it. It's not even necessarily that rich people just know innately how to make money, it's more like they just have access to many more people who do know how to invest.
Any schmo can open a Wealthfront account with no minimum balance that returns somewhere in the realm of retail investment returns, but only people with obscene amounts of money can go invest in the real estate firms like the one I referenced, which return many times more to the investors than anything in retail would. That firm was returning many multiples above anything you could invest in on the retail side. So having a million dollars to put into these kinds of firms winds up making so much more percentage-wise than the tens of thousands that I can put into my retirement account. It's a self-perpetuating system that allows the wealthy to continue out-earning everyone else. That's how wealth inequality works in a nutshell.
I could give you the name of the firm so you too would know how to make that kind of money. Only, you wouldn't be able to without being able to make the minimum required investment. It's not that they have some secret knowledge about making money, it's that they can buy access to the high-return investment firms that you and I just can't.
> The thing is that it's so much easier to make money when you have it.
So true. My rich uncle once told me "The hardest million I made was my first million". Then you look at how the banking system works: the more money you have in the bank, the more money the bank pays you. But if you don't have enough money in the bank, then the bank charges you. So it's actually more expensive to be poor than it is to be rich, and the richer you are, the faster you become richer.
It's as if you're first place in Mario Kart, and all you get are stars, while the last place car keeps getting banana peels that they then slip on. Not a very fun game, but that's life.
"But if you don't have enough money in the bank, then the bank charges you. So it's actually more expensive to be poor than it is to be rich, and the richer you are, the faster you become richer."
Not only banking, everything is more expensive, when you are poor.
Miss a payment, because the money was gone before the end of month? You still have to pay it fully, plus fees.
Can only afford a old car? Pay more with repairs and tax.
You need money but have low bank reputation? Pay way higher interest rate - if you are lucky to even get the loan.
You get screwed over, but cannot afford a lawyer? Bad luck.
Any schmo can open a Wealthfront account with no minimum balance that returns somewhere in the realm of retail investment returns, but only people with obscene amounts of money can go invest in the real estate firms like the one I referenced, which return many times more to the investors than anything in retail would. That firm was returning many multiples above anything you could invest in on the retail side. So having a million dollars to put into these kinds of firms winds up making so much more percentage-wise than the tens of thousands that I can put into my retirement account. It's a self-perpetuating system that allows the wealthy to continue out-earning everyone else. That's how wealth inequality works in a nutshell.
I could give you the name of the firm so you too would know how to make that kind of money. Only, you wouldn't be able to without being able to make the minimum required investment. It's not that they have some secret knowledge about making money, it's that they can buy access to the high-return investment firms that you and I just can't.