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He recentlyposted on Instagramhighlighting one key thing wealthy people do that the average person doesnt.
That thing?Buying assets.
Heres why that matters as youwork to grow wealth.
There are several reasons for the disparity.
One is that the wealthy have more disposable income to make nonessential purchases.
Another is that poorer Americans dont prioritize holding assets.
Thats problematic, as examined below.
Why Wealthy People Buy Assets
Wealthy people buy assets because assets build wealth faster than cash savings.
For example, the purchasing power of a dollar has declined by about 52% since 1995.
Over the same time period, the S&P 500 stock market index has returned 840.5%.
The math can change based on the asset throw in and the period of time examined.
But, generally, buying assets helps people perform better financially.
That principle holds true whether you have $1 million to invest or $1,000.
What If You Cant Afford Assets?
One reason why poorer Americans dont own assets is that they have less money to buy them.
If youre in that position, Singh recommends taking the following two steps as soon as possible.
There are two main options.
Cutting expenses will be easier if you have a clear budget in place.
Note how much youre spending across different categories and look for opportunities to cut back.
Those extra funds will be what you start putting toward purchasing assets.
Consume Free Financial Education Resources
Singh also advises taking advantage of free online financial education resources.
This could be all it’s crucial that you get your bearings and makemore efficient progresstoward your financial goals.
As you go, consider different viewpoints on topics that interest you.
The first piece of advice you get wont always be your best option.
The more financial content you review, the easier it will be to decide whose advice to follow.
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