THREE REASONS THE RICH GET RICHER

The Real Estate and Wealth Expo returned to Toronto last Saturday. I bought a VIP ticket last year (see Too Good To Be True and Secrets To Billionaire Success) but couldn't stomach the onslaught of unrelenting sales pitches and stayed away. Maybe others couldn't either. Last year's event ran two days with Tony Robbins headlining Saturday and Donald Trump on Sunday. This year the event was only on Saturday with a prerecorded Trump as the featured guest.

The general theme is that you can get rich quick using turnkey systems. You don't need any money ... as long as you pay a special low, low, chance in a lifetime price --- roughly $1,000 --- to find out how. You can't really fail (but if you do, it's your fault). Reward without risk. Who can turn that down?

The wealthy can. Maybe that's why they get wealthier. Which annoys those who aren't in the same category. Back in high school, I thought the wealthy got too many tax breaks, which was unfair and even un-Canadian. Make the rich pay their fair share! Increase the minimum wage! Have more unions! Vote NDP! Such was the passion of youth in the digital days of black/white, right/wrong.

And I'll give my consentTo any governmentThat does not deny a man a living wage--- Billy Bragg, Between The Wars

Clucking or Soaring?
Back in 1992, a Brian Tracy course (The Phoenix Seminar: Achieving Personal Excellence) taught a new truth: you can soar with the eagles or cluck with the turkeys. That was the right message at the right time. I resolved to spend more time with the eagles. The turkeys resent your transformation but your new peer group welcomes you. There's always room at the top to enjoy the cleaner air, extra sunshine (but wear sunblock...) and breathtaking view.

Three Reasons
So why do the wealthy get wealthier? I've observed three reasons:

1. Competitive advantage: they become the best in the world (clients define "best" and "world")
2. More options: they consult with specialists (who they pay for results, not effort) as they move along their Financial TRAIL
3. Tax strategies: they minimize tax to preserve and grow their wealth

Momentum compounds like investment returns. Wealthy begets wealthier. An upward spiral. Without get-rich-quick schemes.

Links

• Rich Canadians Get Richer, The Rest Stay Where They Are (Canadian Press, Sept 24, 2007)
• The World's Billionaires 2008 (Forbes, March 5, 2008)
• Bill Gates Drops To #3 On Billionaire List (MSNBC, March 6, 2008)
• Rich Are Getting Richer Faster, Much Faster (New York Times, Dec 15, 2007)
• The Rich Get Richer (Wikipedia)