To think it's easier to effortlessly get richer when you are already rich?

SpreadableCheeseOnEverything · 2023-04-30T21:48:09+00:00

Someone that I know is married to a wealthy man who has family money. His parents bought them a house for £1.5million a few years ago. They did a kitchen extension and a few other renovations and recently sold the house for £3million. So in excess of £1million profit made in just a few years with a few home improvements. Her husband works in the city in a well paid job, and now she has started her own business, which is going brilliantly and is very profitable. However, her in laws paid all of the start up costs of the business. So without initially having money to start this, she wouldn't be able to make the profits she is making now. AIBU to think it's so easy to make money if you are rich?

MuggleMe · 30/04/2023 23:25

Yes absolutely, you can put spare money in investments or even just home improvements without paying interest on a loan or extra mortgage. Easy to get passive income working for you, or the connections you make when you're moving in richer circles.

crazecatlady2 · 30/04/2023 23:30

Even at a basic level this true. Our modest little savings attract interest at a very low rate but it still nearly £100 pm

Okisenough · 30/04/2023 23:36

Of course. Money makes money.

MojoMoon · 30/04/2023 23:42

Yes, of course.

If you have capital, you will become richer passively than someone who is merely a wage earner

"Capital is dead labour, that, vampire-like, only lives by sucking living labour, and lives the more, the more labour it sucks" - Karl Marx.

Youdoyoubabe · 30/04/2023 23:46

Yes it absolutely does. If you don't need all your money for day to day expenses you can use it to invest for a return be that in property or business.

It does get evened a little bit with each generation as huge fortunes are taxed again upon death.

Taxitaxiforever · 30/04/2023 23:46

Yes agree. My inheritance is earning me £200 a month without any effort…I am actually donating half of it to a charity that is relevant to our area .

Amboseli · 30/04/2023 23:51

Definitely. If you have excess Income or capital you can invest it and it will compound and grow exponentially over the long term.

whatkatydid2013 · 30/04/2023 23:56

Yes of course. Even for people with a bit of spare money it’s easy extra income having it invested.

Ihavehadenoughalready · 01/05/2023 00:01

Reminds me of that Steve Martin joke about how to become a millionaire:

"Step One: Get a million dollars."

Fifi0 · 01/05/2023 00:02

YANBU it's easier to invest.

IUseThisNameToTalkAboutMoney · 01/05/2023 00:15

Yes, not just because you have spare money to invest but also because you can take financial risks (eg start a company, retrain to switch careers, put money into higher risk higher return invest,enys) knowing you if it goes tits up you won't be destitute.

EustaceTheMonk · 01/05/2023 01:21

They say making the first million is the hard part. After that getting rich is easy.

RubbishClaimsToFame · 01/05/2023 01:46

Yes, even at a basic level the poorest will struggle to get any richer. If you have money, you can afford to buy bigger volumes of things such as washing detergent, which will be cheaper than buying the small bottle from the corner shop. Electricity and gas on key meters is more expensive than having bills. Having a new car is less expensive than running an old banger. And so it goes on. It’s really hard to get any more than nothing if you have nothing.

Junosui · 01/05/2023 01:58

Yes. DH's family are extremely wealthy. We've benefited from that in so many ways, not least that I've been able to set up a business that I could grow patiently without the stress of bills etc.

It makes me angry. Our society is so fucking unequal. Everywhere I look, there's people like me, able to benefit from being financially secure, and women who have had every safety net and source of support systematically ripped away by the fucking Tories.

I work in a creative industry. It's late-30's - middle age white women from stable, white, middle class backgrounds everywhere, all giving each other another leg up.

MrsTerryPratchett · 01/05/2023 02:02

IUseThisNameToTalkAboutMoney · 01/05/2023 00:15

Yes, not just because you have spare money to invest but also because you can take financial risks (eg start a company, retrain to switch careers, put money into higher risk higher return invest,enys) knowing you if it goes tits up you won't be destitute.

This. There are fairly good statistics that risk-taking is profitable. More often than not a risk will result in a gain. If you are able to take more risks, without any real threat, you accumulate. It's not just about passive income.

Unfortunately people keep voting for rich people, who don't understand that because they haven't lived it.

Cattenberg · 01/05/2023 02:21

RubbishClaimsToFame · 01/05/2023 01:46

Yes, even at a basic level the poorest will struggle to get any richer. If you have money, you can afford to buy bigger volumes of things such as washing detergent, which will be cheaper than buying the small bottle from the corner shop. Electricity and gas on key meters is more expensive than having bills. Having a new car is less expensive than running an old banger. And so it goes on. It’s really hard to get any more than nothing if you have nothing.

Completely agree.

If you can only afford to buy an item on hire purchase, you’ll probably be charged more than if you’d bought it outright.

If you can only afford to rent your home rather than buy it, you’ll pay off your landlord’s mortgage for them and have no asset to show for it.

If you don’t have savings, an unexpected bill could force you to take out credit card debt, or worse still, a payday loan. Then, if you can only afford to make the minimum payment each month, you could end up paying the value of the debt several times over. Compound interest is great when you’re saving, utterly horrible if you’re borrowing.

Hawkins003 · 01/05/2023 02:25

Having e.g. £250,000 ect certainly helps to begin and grow the business, but then you still have to be careful and make sure your turning profits whenever possible

Emotionalstorm · 01/05/2023 02:35

Yes it's important to diversify your income and wealth. You only have so many hours a day and if you link your entire income with that there's only so much you can make. You can use that money to make more money in other ways. We have an investment portfolio, equities etc

Emotionalstorm · 01/05/2023 02:37

Cattenberg · 01/05/2023 02:21

Completely agree.

If you can only afford to buy an item on hire purchase, you’ll probably be charged more than if you’d bought it outright.

If you can only afford to rent your home rather than buy it, you’ll pay off your landlord’s mortgage for them and have no asset to show for it.

If you don’t have savings, an unexpected bill could force you to take out credit card debt, or worse still, a payday loan. Then, if you can only afford to make the minimum payment each month, you could end up paying the value of the debt several times over. Compound interest is great when you’re saving, utterly horrible if you’re borrowing.

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If you're well off you also get better payment terms.

BlastedPimples · 01/05/2023 05:54

Yes absolutely it's easier to become wealthier once you have money.

And once you're in the poverty trap, it's almost impossible to get out of it.

Meanwhile, the wealth is secured only amongst the very few.

Wealth is often down to luck not always hard work.

Surely there are ways to create a more equal society with more opportunities and fewer poverty traps for people? Nobody really cares about that though. The view is if you're poor it's because you're not working hard enough, you make stupid financial decisions or you're just a failure who doesn't deserve to be financially comfortable.

Jackienory · 01/05/2023 05:58

And you can lose it just as quick.

lucylantern · 01/05/2023 06:06

Junosui · 01/05/2023 01:58

Yes. DH's family are extremely wealthy. We've benefited from that in so many ways, not least that I've been able to set up a business that I could grow patiently without the stress of bills etc.

It makes me angry. Our society is so fucking unequal. Everywhere I look, there's people like me, able to benefit from being financially secure, and women who have had every safety net and source of support systematically ripped away by the fucking Tories.

I work in a creative industry. It's late-30's - middle age white women from stable, white, middle class backgrounds everywhere, all giving each other another leg up.

This is such an odd perspective, you’ve benefitted from it but you’re furious about it?? If you were that angry why not give the money to charity and get a normal job like the rest of us. Or maybe become an MP or councillor since you can clearly afford it.

I hope you don’t give any middle class white women a leg up and only choose worthy people to support…

hattie43 · 01/05/2023 06:19

Errr yes . On the other hand though having fall back money may mean you don't put the graft / resilience in if things get tough because it's far easier to quit than dig deep.

hattie43 · 01/05/2023 06:21

Junosui · 01/05/2023 01:58

Yes. DH's family are extremely wealthy. We've benefited from that in so many ways, not least that I've been able to set up a business that I could grow patiently without the stress of bills etc.

It makes me angry. Our society is so fucking unequal. Everywhere I look, there's people like me, able to benefit from being financially secure, and women who have had every safety net and source of support systematically ripped away by the fucking Tories.

I work in a creative industry. It's late-30's - middle age white women from stable, white, middle class backgrounds everywhere, all giving each other another leg up.

Give your money away then . Plenty of charities you can help then you won't have the burden of being wealthier . And as for the shitty comment about white middle class ladies well less said the better .....

hattie43 · 01/05/2023 06:22

@lucylantern

Omg exactly my thoughts , cross posted the same thing