Rich and poor it's a tag given by society. Both have two eyes, two hands, one mind. Despite this, there is a vast difference between the financial condition of both of them. Do you know why? in a very simple language the reason is discipline, dedication towards your work, your efforts to achieve your goals, your financial knowledge and your surrounding company.


Mind on your own business:  Rich people know the value of time, they know If they waste their time today then time can waste their tomorrow's planes. They make planes today for tomorrow and follow that like a target. They are well discipline about their time and goals.

Assets- In a very simple language, which give you money in the form of return for example you invested in stokes you will get profit If company grows, you get a monthly income in the form of divided. You don't actively work to earn this return. Your invested money works as employees for you.

Liabilities-  In a very simple language, which takes money from your pocket for example you purchases a bike you will have to pay for Petrol and bike service expense.

Poor people save their hard earn money to purchase labilities and then pay monthly EMI's but Rich people invest those hard earn money to create an asset for early age retirement and once invested money gives returns then they purchase luxury things. 

50-30-20 Rule- Poor people never follow this rule. According to this rule you should spend 50% of your salary for your needs like food, clothes, bills. 30% for your wants and 20% Investment. They don't manage their money.

Rich people understand the importance of education. They make a habit to read books and improve knowledge. They take financial knowledge. Poor mindset people do the opposite, they focus on degree to get a secured jobs.

Poor people search a secure job and avoid taking risk but rich do opposite they take risk and become capable to give a secure job to their employees.

Rich plan retirement at the early age. They build a system for multiple sources of income, create a passive incomes and invest in new startups. They never say, It is not possible they ask a question that how can they make it possible?

There is a very common thing between rich or poor people they both pay EMI's. Poor people pay monthly EMI's for their purchased liabilities and rich people pay for their monthly SIP(systematic investment plan). This is the main reason rich getting richer and the poor getting poorer.