Before we proceed further, we needed to get some definition straighten.

"Income" - the money that is going into your bank account

"Expense" - the money that is going out from your bank account.

"Liability" - an item that take money out from your bank account.

"Asset" - an item that put money into your bank account.

So, if we all have agreed on the term above, then, we shall proceed on with our findings. However, in order to understand the rich better, we needed to see what the other 2 classes of populations were buying on their pay day.

Firstly, for the poor, they would usually buy a lot of stuffs on their pay day. Stuffs such as photo frames, new shoes, toys...etc were bought out of impulse. These items were actually pretty useless and do not really add much value to the poor. These stuffs did not generate income but expenses. According to our definition above, these stuffs is group under "Expenses". So before month-end, the bank account for the poor would be pretty dried up as most of the incomes turned into expenses and got out of the poor pocket. Therefore, the poor would remain poor!

Next for the middle-class, they were mostly professionals or business owners. They usually earned about 5-figures income and lived in big houses and drove big cars. Their 5-digit income would usually used to pay the bill of their liabilities, such as house and cars! In normal accounting term, asset were item that we owned; however, if we considered the definitions above, more than likely, most houses and cars owned by these class of population did not bring in income. Instead, these liabilities took money out of their owner's pocket as these items were usually under mortgage of bank installment. So, huge percentage of their income would have been channeled to pay the long-term liabilities. Thus, these liabilities would turn to be expense and before month-end, the middle-class would be broke. This class of people was usually, nowadays, termed as "Poor-Rich-man". They seemed to be rich, but actually, did not own anything or have much saving! I am not surprised that most of them have negative net-worth! If this class of population did not change or break their "bad" habit and mindset, they would be downgraded to poor in no time!

Now, lets look at the rich. They would usually invest on assets, which in term helped them to bring in more income so that they could re-invest their earning again. Their assets included house that they could rent out to collect rental, business that made positive cash flow, educations for valuable knowledge...etc. Although the rich did buy some useless stuffs, but the percentage of these expenses vs incomes were much way too intangible!

Since we have discussed and understood the differences, it would be easy to identify which class we are in now. Thus, we can take action to change: we need to be like the rich and invest on assets! The good news is, in this era of time, investment on assets is not as high as we used to think of in the last decade.

Some affordable assets are:

1. Stock and Bond - own company at a fraction of price

2. Options - own stock and bond at a fraction of price

3. REIT - own building at a fraction of price

4. Publish a book electronically - cut away the physical publishing and distribution cost

5. Insurance - build residual income

6. MLM - own a franchise at a fraction of price and ability to build residual income

7. Internet Marketing

I looked into all the above and found that Internet Marketing is the best bet with minimum risk:

1. It opened 24 x 7

2. It required lowest investment

3. It reached out to the whole world

4. It could be fully automated

5. It did not really need any products

6. It could be easily duplicated

7. It had unlimited income earning

8. It could become residual income

9. It could be past down to generation

10. It had the lowest risk

So, to buy like a rich do, for a start, I would suggest the poor and middle-class should focus on building several Internet businesses. This new business model will be able to effectively help the poor and middle-class gain extra income and build on their passive income. Passive income will put money into their pocket automatically. This is the best and cheapest investment the poor and middle-class should buy during their pay day!