Where The Rich Spend Their Money

Everyday the newspapers and TV have continued the stories with how bad the economy is. I hope all of our readers choose to, as one of my customers said recently, “not participate in the recession”.  What is interesting is where people are spending there money during this period. The successful sales tip today is about how you can make yourself a more successful person….which in turn will make you more successful in sales.

The Bureau of Labor Statistic has released some interesting data. A lot of people have changed what they are spending money on this past year. What is also interesting is who is not only who is spending the money, but how the percentages have changed.  To be a success in life you have to be able to manage your money…so let’s look at the breakdown.

Beginning with the lowest income group..they spent 9.6% more on entertainment then they did in 2007. What??? you should be spending less on “Entertainment”, if your money is not as plentiful. The middle class and the richest % reduced their spending in that category. Hmmmm there may be a pattern here.

Education. Here is where you really seperate the have from the have nots…and it will also tell you the reason why.

The Education Numbers

The lowest earners spent an average of $573 on education last year, 6.7% less than in 2007. In contrast, middle-class households increased their education spending by 3%. The richest raised theirs by 16.7%.

So you tell me…do the rich know something that other people don’t know? I believe the answer to this is yes. When jobs and money are harder to come by and the competition becomes greater…the rich get more knowledge. The poor spend more on entertainment.

It seems to me this tells the real story of why people are rich and why the poor are poor. I am not making this about class warfare. I am by no mean “Rich”. I consider myself upper middle class. But I have been poor. Not destitute, but there were times in my life where I didn’t know if I could keep the lights on and if I could afford formula for my kid. But I believe I am in the position I am in today because I spend my money (after getting formula of course) on educating myself.                                                                                                                        

You don’t need to buy education…it’s free at the public liabrary. So if you are poor or middle class you need to spend more on Education then the 16% the wealthy already are….

Now you have the “magic formula” …

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