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Rich said, the formula for great wealth is found in the game of monopoly, many of us know the formula. Buy four green houses and trade them in for one red hotel. The formula for wealth fund in the game of. When you look at the comparison of the poor person and rich person ratio. You may understand whey rich economic power continued to increase and the poor economic power remained the same.
Real estate for poor people 1:1 never changed
Real estate for rich people 1:500 always increasing
In other words the poor economic power remained at 1:1. All he had was his house. On the other hand rich economic power was 450. He controlled oat very 450 rental units. His economic power was going up exponentially. When you look at poor ratio of 1:1 and then factor in the effect that taxes had on his income, ordinary income at 50 percent, you can actually see why my poor economic power did not increase although the worked harder and harder. Rich income was going up, he is economic power was going up and he was paying less and less in taxes.
Not only did our economic power go up, our confidence had also gone up as our experience went up. When we purchased that 12 unit apartment house, our leverage ratio was 1:17 and our economic power was 1:289. Others who only had their home and did not purchase incitement property during the downturn, had their real estate ratio remain 1:1 and their economic power remain 1/
This example explain how a person who operates in the business can soon pass a very smart, talented or well educated person in the employee. The rich people was eventually earning more in a year than the poor earned all his life.
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