Why the rich keep getting richer, they create wealth

By Soko Directory Team / November 5, 2017

Why the rich keep getting richer, they create wealth

By Revuka Capital

Everyone says it, the rich keep getting richer and the poor keep getting poorer. A famous person (not sure who) once said that if you take all the money from rich people and give it to poor people, the rich will eventually get their money back and the poor will go back to being poor.

I think I partially agree with this statement. There are those who are skilled at creating wealth. They see opportunities others don’t see, they think in ways that others don’t think. They are smart risk takers, they win more than they lose.

The person who is poor and gets a million shillings – let’s face it, will eventually spend all the money. The person who is skilled at creating money may only make 10k the first month but they have the skill to grow it to Ksh 1m within a year.

So what’s the secret? How does one get rich? Well for one it’s no secret why this question has birthed a multi-billion dollar industry with thousands of books on sale on how to get rich. I have bought some of these books and consumed a lot of information on ‘how to get rich’. I hate to be the bearer of bad news but here goes – there is no formula. You will probably figure this out too after 6-8 books. They may tell you what worked for them, but that doesn’t mean it will work for you.

Remember the quail eggs story? How a few bird farmers made a killing from selling quail eggs and then the whole market got into it and a good bunch of people lost money? Imagine if the first quail farmer – wrote a book and titled it ‘how to get rich, my story’, what a disaster that would have been for anyone who followed suit!

Now you will still gain some good knowledge from these books such as how to make sure you research your investment properly or how to understand market dynamics and these are important.

There is one thing about wealth creators that remains consistent, they all seem to have a great sense of what investment to get into before anyone else does. Do you know how the rich get wealthier? They are always a step ahead of everyone else. They seem to have some kind of special insight that can’t be found in textbooks or classrooms. They’re like sailors, they know what direction the storm will come and how to steer the ship.

So where does this leave the rest of us? Should we give up and call it a day? Not just yet, creating wealth is a skill that can be learned. Unfortunately, it can’t be learned by copying other people’s strategies or doing an MBA (you can have 1001 accredited degrees and still be broke).

If you’re lucky to know someone who’s great at creating wealth, try as much as you can to spend time with them, volunteer to help them with something that will add value to them. As you interact with them hopefully you will learn how they think, what drives their investment decisions and hopefully, learn the art of sailing in the marketplace and become a multi-millionaire.

 


 Revuka Capital acts as a bridge between investors and investment opportunities in the East African region. Revuka specializes in market research, investment tours as well as advisory services pertaining to investing in the region.



About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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