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How Can a Man Be Rich if He Gives All His Money Away?
originally appeared on Quora: How can a man be rich if he is willing to give all his money away to the people who need it the most?
This is a common misconception that accumulation of wealth will make one rich. Oftentimes, keeping money to oneself will only end poorly. To become rich, a man has to in fact increase his money flow and put it to use. Thus the overused quote “make your money work for you”.
To compare between accumulating value and giving value is similar to comparing between mercantilism and capitalism. For the individual, accumulation of wealth works well only if your net worth is not much — that is referring to us the common folks.
Whereas for the rich man with net worth as much as the GDP of a country, keeping money to himself will most definitely erode his value. In order to keep value for any capitalist, he can do two things:
- increase cash flow (invest/donate/spend)
- provide value (work, produce, business)
“The only way to be really rich, is to share your wealth by investing it,” — Peter Schiff. We talking about Billions here.
