How The Rich Got Rich

Posted: June 30, 2016 in Uncategorized

Riches come to those whose minds are favorable to it. For centuries people have always sought ways to earn more money and asked lots of questions concerning making money. For instance, what did Benjamin Franklin, John D Rockefeller, Andrew Carnegie and Warren Buffet have in common? What did they have in common with nearly every self-made wealthy person? We will explore the answer to these questions in this post.

Benjamin Franklin- Watch Your Expenditure.

From his earliest days, Benjamin Franklin watched his expenditures with great care. For a time he ate a vegetarian diet to save money because meat was expensive. He did not drink alcohol often because of the expense. He kept careful accounts of his expenditures and reviewed them every day. While he was not by his own admission perfect during most of his life, he strove to live below his means. As a result he was able to retire early in life and spent the last half of his life living in comfort pursing his scientific interests and politics. He was one of the richest men in America.

 

John Rockefeller- Careful About Spending.

From his childhood John D. Rockefeller was careful about how he spent his money. He carried with him throughout his life a small notebook where he recorded all his expenditures no matter how small. He taught his children to do the same. He taught them to follow his formula: 10% of all his income to the church, to save half the remainder for investments and to live off the remainder. Rockefeller went on to found the Standard Oil Company and to monopolize the oil industry in the United States. He established the first true modern corporation and became for a time the richest man in the world.

 

Andrew Carnegie- Learn To Save.

Andrew Carnegie came to the United States a very poor boy, son of an immigrant textile weaver who could never hold a job. Carnegie himself began working as a small boy and saved every dime he earned. What he did not give to his mother for family expenses he either saved for investments or spent on books to educate himself. By age 18, he had helped his mother pay in full for their family home and had founded his first business, Carnegie also kept careful track of his expenditure and although he very much enjoyed the finer things in life he never spent more than he earned. He became one of the richest men in the world.

 

Warren Buffet- Invest Your Money.

Warren Buffet grew up in America’s heartland. While his family was comfortable, they were not rich. From his early boyhood he ran small businesses and learned to invest the money in stocks. Throughout his life his tastes remain simple. He has lived in the same simple home in Omaha that he bought in the 1950s for $31000. He does wear tailor made suits and does own luxury homes, but for the most part, he has lead a modest life. His assets are in billions of dollars and he is usually rated the wealthiest man behind Bill Gates, founder of Microsoft.

 

Lessons Learned- Live Within Your Means.

What all these men have in common with most of the self-made wealthy men and women throughout history is that they control their expenditures. They learned to live within their means – or rather below their means. Before they became multi-millionaires and billionaires, they spent with care avoiding unnecessary expenditures and when they became immensely rich they avoided spending extravagantly to impress. Rather than spending large amounts of money on the unnecessary, they invest most of what they earn and give the rest to charity in large amounts.

Contrast this with most less-successful people who routinely live beyond their means, amass consumer debt, and continually buy automobiles and homes they cannot afford and spend without a second thought. Learn from the most successful men and women – live within your means and put your money to work for you.

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