January 18, 2022


I am 38 Years old. When I was young a very popular animation series was Richie Rich. A very young rich boy surrounded by coins and money, spending whole day! This image may help you to recollect:

Richie Rich

I recalled this series today morning when I read the headlines of today’s newspaper, here we go:

Divya Bhaskar (Ahmedabad edition) date: 18/01/2022

It is in Gujarati language, basically saying: the Riches got richer in last calendar year and poor got poorer! This is almost repeated headline each year and believe me, this is common across the globe. News media outlets tells you WHAT happened. They don’t tell WHY this happened??

In Nutshell, Rich got richer and poor got poorer, yet again! and news media not telling poor or middle class why this happened?

Here is my thoughts based on my experience in personal finance field and interactions with industry stalwarts over the years.

Rich people:

– Never speculate means never waste their time in short term trading.

– Believe in wealth creation through investing and knows there is no quick money.

– Have long term vision and clear goals listed out to achieve.

– Invests their hard earned money in growth assets (equities/real estates/commodities).

– Follow their asset allocation plans and rebalance as and when needed.

– They knows their home they are staying in is a liability not an asset.

– Takes advice from competent experts (Advocate, CA, Financial Advisor etc).

– Do not read / follow news media to take their decisions related to investments (newspapers, TV channels, social media).

– Lastly, money works for them!

Middle class/poor people:

– Believe in quick money (stocks/crypto/F&O trading, cheat funds etc)

– Have short term vision (less than 5 years of investment horizon)

– Believes that the Home they are staying is their biggest asset.

– Keeps their most of money in Insurance policies, FD, PPF, gold, real estates (they earn less money or have money locked).

– Don’t believe in asset allocation (max investment in real estates, debt or gold – more than 60% mostly in their home only).

– Believe they knows everything so don’t need to pay any fees to advisors.

– Follows news media, neighbors, friends, bankers for tips to invest their hard earned money.

– Everything buys on loans, creating liabilities throughout their life.

– Works whole life for money!!

This is my personal view about money, investment, rich, poor and middle class people. Comment your views in the box below to share yours!

9 comments on “Why Richie Rich is Rich? Why he gets richer year on year?

  1. Nikunj, you have done good analysis and in a way it is true, but people have their own priorities. Since in general we think and feel that monetary achievements are the only achievement in life, and that is what we read, hear and see around the world that, success is mostly measured in terms of how much money one has accumulated within which period, but people have different tests, likes and preferences in different age. Look at the Gautam the buddha – if he would have continued his life like other millioners and billioners in simply keep on creating monetary wealth only, he might have missed core richness of existing this opportunity of human life! Isn't it ?

    In life nothing everything is ok, it is always relevant with several other aspects apart from Money. Every one has their own preference. When a person's preference change or updates or upgrades – life takes it's own turn automatically. One can be rich by birth due to inheritance and can loose everything, one can start becoming rich from one's early age enterprionr, one can start becoming rich even after the age of retirement, All it is left to one what wants do and when ?

    In my whole banking services carrier, usually I used to think that, people are not well or enough educated about worth generation – but in spite of understanding, I have seen people just go with their preferences of life. When preference of life turns (what ever the age or time) to be rich in which ever the area of life, one marches towards it naturally. All sorts of ways always open for every one always. Choice is for every one.

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