We all have heard about lottery winners in the TV who was poor and went to be an instant millionaire overnight all from a small bet of numbers that will pop up in the TV with a one in a million chance to a rich life experiencing first class service, luxury cars, lots and lots of new friends and houses then going back to where they were before betting in the lottery.
This is a classic and basic example of proving that it’s not how much you have and you make but how much you keep it. Typically most people rely on one source of income. The active income, basic example is a job. If you’re present in your job you have income, if you’re not you don’t have income. That’s what we call active income. In observation, the higher the income the person has the higher the expenses goes as well. Remember as a child when you get money from your family during Christmas in your socks hanging on the stairs? What did you do to that money? Most people spend it, some save it and very few invest it. This is a classic theory of the everyone of why the rich are getting richer because of their income. In fact it’s not, it’s how much money they keep, save, invest and re-invest the difference. If a typical rich person stops working on his active income how long can he/she live and survive? We can say it will be quite long because no rich person has a net worth of 0(Zero) or negative.