Friday, January 19, 2018


Mind The (Wealth) Gap: 4 Reasons Your Estate Hasn’t Grown.

January 9, 2018 by  
Filed under Money/Business, Weekly Columns

(Akiit.comThe wealth gap is the difference between the working and middle classes and the very rich. In recent years, the gap has grown tremendously without people realizing. Sorry to be the bearer of bad news, but you might be apart of the majority as opposed to the one percent. The reason for this is that your estate, therefore your wealth, hasn’t grown in the past couple of decades. Okay, your finances might be stable, but they are by no means spectacular. Before you can shrink the gap, it’s essential to know the reasons why your estate has plateaued. Below are the common causes.

Too Much Debt

The average family in the United States of America carries around $6,000 of personal debt. Including mortgages, that increases to tens of thousands of dollars. Do you have arrears which are difficult to manage? If so, this is probably the main reason your wealth isn’t growing and indeed declining. Quite simply, you spend too much money on keeping out of the red than trying to work your way up the black. Thanks to interest payments, fines, and penalties, there is nothing left to invest. The good news is that debt consolidation programs are on hand to help and make the process less expensive. Also, negotiating with your creditors is another savvy move.

Job Stagnation

At the beginning of a person’s career, it isn’t rare for them to have a variety of jobs. Then, you find something you like and can’t believe your luck. Unfortunately, this attitude sticks with you for a long time, and that impacts your wealth. Why? It’s because wages are subject to inflation. In the recent past, it has outstripped the average monthly salary, which means you are worse off financially. The only options you have are to secure a promotion, ask for a raise, or switch roles. As a rule, obtaining a new position is a fantastic move as it refreshes the bank balance and makes work exciting again.

Save Over Spend

Less wealthy people have a simple strategy: save as much as possible. You never know when a rainy day will occur, so it is a wise plan. However, putting money into a savings account is also a sure-fire way to lose money because of the small interest rates. Still, the working and middle classes are too scared to take a chance and would rather play it safe. Wealthy individuals don’t have the same attitude, and they know they have to speculate to accumulate. Therefore, these men and women grab the first investment opportunity with both hands. Investing in a property, for example, could be a great way to make money.

Impatience

One of the biggest killers of wealth is a lack of patience. People want money and they want it as soon as possible. As a result, it isn’t uncommon to make a fatal error that destroys an investment. According to Warren Buffett, the best way for a layperson to be successful is to accumulate cash over time.

If it’s good enough for one of the wealthiest men on the planet, it should be good enough for you.

Staff Writer; Steve Parker


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