Here Are 15 Different Ways the Rich Live in a Completely Different Realm Than the Poor.
Hello Aluxers and welcome to a very exciting Sunday Motivational article, especially today when we’re showcasing just how big of an unfair advantage rich people have.
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We promised we will keep it honest with you and this is the truth:
There are two types of people in the world:
Those who want to be rich and those who lie about it!
Because our current system is built on monetary transactions – even staying alive is getting more and more expensive – we have all agreed to monetize our lives in order to take part in this system – until the point where one can escape this so called: RAT RACE.
As much of a hippie as you are, we all share the same underlying ideology in which we want our children to have more opportunities and live a better life than we did!
This baseline principle has skyrocketed productivity of human kind and has pushed us from hunting mammoth to covering earth’s atmosphere in satellites.
Since this is a type of race that can be won and there are great rewards for those who do make it, we now find ourselves with the children of those financial-athletes who are living the dream their parents have envisioned for them. The only difference between you and them, is that they are one – or several – generations ahead from where you are right now.
Here’s what’s waiting on the other side of the finish line: 15 Unfair Advantages Rich People Have.
This one’s going to be quite a long read. Why not take the unfair advantage you can and switch to the video version of this article?
With that out of the way, let’s jump into the list.
Not Having to Worry About Money Problems
Fundamentally, every single one of you wants to get to a point in your life where you don’t have to worry about money problems.
This is a very important distinction most people fail to make.
You don’t want money just to say you have money… you want it so you don’t have to worry about money problems.
The reason why we began our journey of financial success is because we grew up poor, and being poor sucked hard! Everything was expensive! We needed things that we couldn’t afford.
Growing up in a poor family allowed us to experience first hand every money problem life could throw at you, so we made it our life’s mission to get to a point where money will never be an issue.
People say money won’t make you happy.. – and that’s debatable depending on who you ask – but the lack of money will most definitely make you unhappy!
Money problems are the first stepping stone in personal actualization.. It’s hard to think about your mental health, your purpose or your happiness, when you don’t know how you’ll pay rent or feed your kids..
America has set a major trap for its citizens through it’s educational and homeownership system. They have mastered the art of getting people into debt, because:
Debt is just a more sophisticated form of slavery!
As long as you have money problems you can never be free!
Just imagine the weight that would be lifted off your shoulders not having to worry about debt… rent… bills… food.. Or simply being able to afford the things you want and need.
This is a major psychological and even physical advantage rich people have.
Access to Capital, Opportunities & Resources
Not only they don’t have to worry about money problems, but they have access to growth opportunities because of their financial status.
This is a perpetuating concept: The richer you are… the more opportunities to be even richer you get!
This is one of those fundamental lessons you will find even in the bible.
For to every one who has will more be given, and he will have abundance; but from him who has not, even what he has will be taken away. — Matthew 25:29
Here’s how this applies to real life.
Let’s say an opportunity to purchase an undervalued plot of land presents itself.
Poor people don’t have the money to buy the land. Rich people do.
Because of this very clear distinction, the rich keep getting richer.
What if Poor people were to go to a bank and try to get financing in order to buy the land.. Well, because of their financial situation they won’t be granted the money.
Rich people have no problem securing loans for any amount, the bank loves them.
This is how the system was designed to make the rich even wealthier and keep the opportunities outside of the hands of poor people.
The system has put in place barriers of entry for opportunities.
There are hedge funds out there that get 20%+ returns EVERY YEAR for their investors, but you have to be able to put 5 million down as an initial investment.
Poor people don’t get access to this kind of resources. The most they can do is keep their money in a savings account that pays 0.1% interest per year – not even enough to keep up with inflation!
Bet you weren’t expecting confidence to pop up on a list of unfair advantages rich people have, but it does, because it’s one of those self-fulfilling prophecies.
If everyone around you tells you you’re destined for greatness and they’re putting all their efforts behind you, you begin to believe it!
Confidence is one of the very few attributes every rich person has!
You have to have the confidence that things will work out in your favor. Because of this difference rich people go after opportunities where others wouldn’t.
Most of y’all have no idea just how big of an impact a supportive family that’s pushing you to be great has on your life trajectory.
If you don’t believe in yourself, nobody else will!
You heard people say this, right? Well.. it’s the truth.
That’s why every single person who’s made it will tell you the same thing. They all wanted it so bad and deep down within themselves they knew they were destined for greatness.
Match this burning desire with discipline and everything else we’ll mention on this list and there’s no way to fail at life.
Their Money Makes Them More Money
If the first thing on the list was not having to worry about money problems and the second had to do with access to opportunities, there’s even a 3rd layer to wealth, where one no longer has to worry about making more money, because their wealth is growing on autopilot.
This economic system has been in place for long enough for people to find ways to play the game on God mode.
Here’s an example.
Let’s say an apartment costs 100,000 dollars and each apartment rents for $1000 per month. – calm down.. We’re making it easy to follow the math, don’t be one of those people -.
If you get to a point where you have 100 apartments, EVERY SINGLE MONTH your collection of properties will add another apartment to the collection, thus making even more money every single month and increasing your wealth.
There is this threshold that once you pass, the snowball just keeps growing on its own.
This is just one of the many ways rich people set their wealth generation on autopilot.
Here’s another example just to keep things interesting for you.
Let’s say you have 10 million dollars invested in the S&P500, through an index fund like Vanguard. For the past 30 years, the index has returned over 10% per year.
That means just the interest on your 10 million investment is 1 million per year. Assuming you spend half of that to maintain your lifestyle – i mean.. Who can’t live off 500k a year for their everyday expenses – the snowball of money that’s invested will continuously grow.
Rich people live beyond these thresholds, and unless they really screw it up, their wealth will keep increasing.
If you want to learn more about putting your money to a passive grind, you should check out the 10 Ways to Make Money Work For You.
Better Education & Mentorships
There was a time in history where only the richest families would be able to afford to send their children to the regional monastery so the priest could teach them how to read and write.
Everyone else’s children would remain uneducated peasants and work the land owned by these rich families.
This was happening just a couple hundred years ago and until the internet came around 20 years ago, education was – and to a great degree still is – one of the biggest barriers of entry to wealth.
If all the high paying jobs required highly expensive degrees, there’s no way the poor would have access to them, thus – once again – perpetuating the cycle.
Because of their gatekeeping efforts, the system has run smoothly for a long time. The people inside the gate, would help each other prosper while everyone else outside was on their own.
Look at the educational system in the US right now.. It’s more similar to a country club than an academia. You pay a membership fee in order to get branded with a specific logo so you get access to the pathways walked by those before you.
This is one of the reasons why we created ALUX. To be the mentor and type of resource we didn’t have when we were starting out because we couldn’t afford to. Today, everyone in the world can watch our financial videos, read our articles, and get real value for free.
We believe the future of education will be online, which is why we created our domain for courses.
A platform where one can learn real-life skills for 100 times less money than you would have to pay to learn them.
The goal is in the next few years to populate the platform with things that you can apply immediately in your life. We’re moving away from a degree based economic environment to a skill based one. Basically, nobody cares if you have a degree or not.. Your financial reward will be correlated to how much value you can add to the marketplace.
You know that Your net worth is directly correlated to your network!
A big unfair advantage rich people have is, on top of inherited wealth, they also inherit networks of people. You grow up surrounded by other rich people, who all do everything they can to make sure their group keeps winning.
This is why doors open for rich people that are kept closed for everyone else.
And this type of network value is spread out through all your existence. You have access to better lawyers vetted by the community, better accountants, better teachers and so on. Children of rich families get accepted into universities because they are “legacies” meaning, their parents went there as well so they have priority access.
Family connections massively accelerate one’s growth and they take decades to build. These networks can grow your wealth and keep you from losing it.
Back in the day, families will solidify their wealth through arranged marriages and bond one family name to another by blood. Marriage was a diplomatic agreement that had more to do with status and wealth than with love.
The prince of one kingdom would marry the princess of another in order to consolidate power in the region.
This is how it’s been done in the middle ages and in some parts of the world, like India for example, arranged marriages are still a thing – there’s even a Netflix show about it.
Or how Wu-Tang put it: “Your seed married his seed, married my seed”
That’s how they kept the wealth, all in the family!
A Lower Rate of Abuse, Discrimination & Harassment
Many people fail to factor in the return of a less abusive childhood. By no means do we say that rich families aren’t disfunctional in their own way, but statistically, you’re less likely to be abused, discriminated or harassed if you do have wealth.
Poor children are at least 2 times more likely to be sexually abused than those who are well off.
This trauma doesn’t go away and has lasting consequences on the growth of an individual.
Growing up with money is like having the cards stacked in your favor.
Or to put it more elegantly:
When you’re poor, people get away with treating you poorly!
Because people discriminate based on status, the color of your skin, religion or sexual orientation, you get less access to certain opportunities. This might vary on an individual masis, but on a macro-level it has large implications on the ability to gather wealth discriminated against minorities.
This is once again a perpetuating cycle. Because of discrimination, certain geographies do not perform well. Corruption flourishes, crime goes up, trust in the regulatory mechanisms drops and individuals lose power.
There’s even a word for it. Do not be a SNITCH. Do not report criminal activity. This is community self-sabotage and is part of the culture. This is a lose-lose type of situation, because people do not trust the police that’s meant to protect them, because they see it as corrupt.
Having to grow up without having to fight against these disadvantages is a major bonus some of you start with. Never take for granted the work your parents put in, so you don’t have to swim against the current!
Money Carries Influence
People treat you differently when you’re rich.
Strangers treat you differently when you’re rich.
What you say matters more when you’re rich.
You can get away with more when you’re rich.
The rules are different when you’re rich.. Because you’re the one writing the rules in the first place.
This is the truth and a massive unfair advantage rich people have.
Just think of how inefficient the current system of government is right now. Politicians are funded by the companies that they need to regulate. In poor countries this is called a bribe, in the developed world, this is called Lobbying.
When you get to pick the person who’s supposed to keep you in check, the entire system is redundant.
Big tech companies like, google, facebook, apple, uber and so on are spending tens of millions of dollars every year to make sure they can keep doing what they’re doing undisturbed. Same thing happens with every big industry and everywhere in the world.
Money carries influence, so those who have it, get to leverage it in their favor.
It’s Cheaper to Be Rich
This is one of those things we were shocked to experience first hand once we made the transition from poverty to wealth.
Rich and influential people pay less for everything.
Here are true personal examples:
We pay a lower percentage in taxes now then we did when we were poor.
Banks give us preferential treatment, lower interests on loans and better payment terms.
Even shopping is cheaper. Here’s something we experienced just 2 weeks ago.
We were in a luxury store and decided to purchase several products. When we went to the registry, the manager gave us a 20% discount on everything because our debit card was of platinum level or whatever.
If you are poor – you are literally paying more for the same stuff.
Banks offer certain perks to their premium customers.
We get large discounts or upgrades when we travel and people are always willing to go above and beyond just to keep you happy. We never have to buy travel insurance because our bank takes care of it for us as a benefit for being a client. These things add up in time.
They do this because they see your potential as a big spender and they’re playing the long game.
There’s this concept that most people aren’t familiar with called: Group growth.
The idea is simple. If the members of a group achieve success together, they will keep supporting each other and share in all their future success.
The best example is the PayPal mafia.
All these people came together and built Paypal, the finance platform we know today. They then sold PayPal to eBay for 1.5 Billion dollars. They were all rich. They all had money and the brains to start new companies.
Elon Musk started Tesla and SpaceX. Reid started LinkedIn, These 3 started a video sharing website called YouTube. Jeremy built YELP and Peter thiel, Roelof & Dave, started backing little known companies like Facebook and Airbnb through their investment funds.
All of them got first dibs to invest in each other’s businesses.. and most of them did.
They’re all even richer than they were before because they knew each other from their past deal. This is what we talk about when we say Insider knowledge. “I’m building this new company, what to invest in it while it’s cheap?”
The biggest deals in the world are done exclusively like this. If Elon Musk started a company tomorrow, there’s 0 chance of you getting in as an early investor – his friends or previous close investors have their wallets ready to cover it. You have to wait until the company is mature enough to file for an IPO. If you’re lucky, you can 10X your investment on the stock market… but those who have the option to become an early investor get 10,000 times their return if things work out.
This is a massive unfair advantage.
They also leverage their know-how in certain industries in order to make better decisions.
If business is like playing chess.. Would you rather go at it alone or have all the grand masters in your corner providing advice?
We experienced this first hand with Bitcoin. Our inner circle began investing in crypto several years ago and in time our extended circle leveraged our knowledge to get in as well and we were more than happy to help, because these were “our people”. Everybody won because of it.
This is how the idea of building the Bitcoin Essentials course came to be. You’re our people as well.
Many of you want to get started with Bitcoin and be part of this new technological innovation but have no idea how, because it seems too complicated and confusing. Why not put the fundamentals in a course, explain it without the complicated mumbo jumbo and give you guys access to a step by step tutorial on how to specifically do it.
We launched last week and hundreds of you have already purchased it with rave reviews. The course is available for purchase here, and if you use the promo code ALUXER on checkout you’ll get 25% off.
Everyone who gets in, joins a private group and we go through everything together, basically holding your hand along the way, leveraging insider knowledge as much as possible.
Today is the last day you can get it before we close the doors. You know that’s how we do it, there needs to be a reward for those of you who take decisive action while everyone else, will have to wait 3 to 6 months before we open again.
This is your chance to get an unfair advantage before it’s too late. And as always, there’s no risk on your side, if you go through the course and believe you didn’t get your money’s worth we will give you all your money back under our 60 day guarantee.
Another big unfair advantage rich people have is that they’re not stuck to a certain location. There aren’t many opportunities in your country.. You can afford the luxury to pick up your things and leave.
This is why we have crowded cities and booming real-estate prices.
Ever wondered why rich people send their kids to study in London?
Ever wondered why rich people have multiple passports?
Everyone follows the money!
The closer you are to money, the higher the chances you’ll get some of it!
This flexibility allows them to pick what they love from each location without compromise.
Right now there are multiple countries that are going through an emergence phase where returns are higher than everywhere else. Great example are real-estate in Eastern Europe, eCommerce and digital services in India, Tourism in South-east asia and south america and so on.
The more flexible and international you can be with your money the higher the returns or in some cases, the lower the taxes. Remember when it was revealed that all the rich people in the world dodge taxes in offshore accounts and nothing happened? Exactly.
Explore Themselves and the World
This one is more philosophical in nature than the previous ones.
Do you really think you can truly get to know yourself if you never go out of the city you were born in? Do you really think you will be able to understand the world and its people by watching the news?
We travel to find more of ourselves!
And those who don’t, get stuck with whatever they land on.
The more you travel the richer you become. But it’s a different type of richness that is harder to define or measure, but it’s certainly there.
You meet people, you learn about them and their cultures. You grow up in one faith, but travel on the other side of the world and people worship elephant gods and are happy and successful because of it. The more you take the world in, the more you understand how narrow thinking you were in the first place.
Travel reveals dots that you didn’t know you could connect and connecting dots has value.
Your emotional intelligence, people skills and tolerance of others improves as you travel. That’s why your crazy racist uncle is the way he is.. If hate is the only ingredient he’s ever tasted, how do you expect him to translate differently to your palette?!
But be careful aluxers, travel is different than tourism! Going for a luxury home to a luxury resort where you’ll eat the same international food isn’t travel.
Better Health Services & Nutrition
We couldn’t speak of unfair advantages during a pandemic and not mention health services.
Health problems end up serious or deadly for poor people in a disproportionate manner than the rich. It’s pretty obvious why. Poor people don’t have access to regular check-ups, no health insurance or access to new medicine.
The rich on the other hand can simply buy it.
If you are poor, you are 9 times more likely for COVID to have a major impact on your life than if you are rich.
Samrachana Adhikari, PhD; Nicholas P. Pantaleo, MPH; Justin M. Feldman, ScD]
It’s just an infrastructure thing. Rich people drive better cars, so they have a higher chance of survival during an accident.
Rich people can afford to buy medicine or seek a second opinion. They can travel to other countries for treatment and the list goes on.
The unfair advantage rich people have doesn’t only apply to extreme situations, it’s a life-long discrepancy based on the food each segment puts in their body.
Eating healthier is more expensive and less convenient than eating junk food.
The gap is slowly closing, but there’s still a lot of room to be covered.
Preferential Legal Treatment
Here’s where things get aggressively bothersome. Not everybody is playing by the same rules and we see this all the time.
There’s literally a CASH BAIL system set in place, where if you have enough money, you don’t have to sit in jail.
But that’s not all. The judicial system is biased in favor of the rich.
There are all these snowball effects in place.
Rich people can afford to pay their fines on time, while the poor don’t. This gets reflected in their record.
Rich people can afford more qualified lawyers whose expertise often changes the outcome of a judicial process.
And so on.. But this isn’t something new. Here’s an article from the new york times in 1964 addressing the issue. And here’s an article from a couple of years ago that breaks down how the legal system is used to continue the poverty cycle.
Money and information can get you preferential legal treatment. This is why rich people like Jeffrey Epstein are allowed to serve their sentence outside of jail, in private mansions or islands. By the way.. Jeffrey Epstein didn’t kill himself!
They Can Afford to Fail
The last item on our list is one that you don’t realise until you take a step back. Rich people can afford to fail, the poor don’t
To address the issue from a different perspective we want you to think of it like this: What if you could only play a video game once, with no check-points, no health potions, only 1 life and no save option.. This is how poor people go through life.
The experience for the rich is completely different. They literally go through life on a pay-to-win premise. They can afford to fail, because failure for them isn’t final, it doesn’t affect them. They have enough money to try again and again and again.
For a poor family to invest in a new business and it not to work will mean financial bankruptcy, while for the rich is just another side project.
In a world where many people only get 1 shot at it, the ability to start over or try again is a super power!
If you’ve failed and are in the position to try again you have no idea how blessed and fortunate you are.
The more money you have the better your safety nets are!
This is the reality we’re living in, and if these are the rules of the game, we want all of you Aluxers to make the most out of them and use them in your favor!
What do you think is an unfair advantage rich people have over everyone else?
What’s the thing you wish you could do yourself, but can’t because you lack the funds?