Grow your money successfully even with little capital — here's how!
You've probably heard of the “unequal distribution of capital.” It is no secret that the gap between rich and poor is widening. The rich are getting richer, the poor are getting poorer and the middle class is shrinking. The high inequality of wealth in Germany is primarily due to client policy tax reforms in recent decades and stagnating incomes. Regardless of tax benefits, most high-earners benefit primarily from their educational background. Just under ten percent of the top earners own as much as an estimated 52 percent of the rest of the population. Here you can find out exactly how the rich get richer and how you can increase your money yourself with little equity.
From 100 dollars to 82 billion dollars
Warren Buffett is in the investment market what Steve Jobs is to smartphones or Mark Zuckerberg is to the world of social media. According to his own statements, the head of Berkshire Hathaway purchased shares at the age of eleven, but he estimates the initial investment for his current fortune at the first 100 dollars he earned by renting out a car that made himself roadworthy. Today, Warren Buffett, with a fortune of around 82 billion dollars, is considered the most successful investor of all time and relies on some key doctrines when investing. He only invests in companies whose business model he can understand and explain products in his own words. Buffett's largest positions include financial firms with which he is very familiar as a broker. The key to its high return in contrast to underlying market prices is the long-term holding of shares. He has maintained his successful position with Coca-Cola investments since 1987, and Buffett also stresses that you should invest in companies and not in trends. So if you want to be part of the blockchain or legalized marijuana trend, you should choose promising companies, according to Buffett, instead of investing heavily in the sectors. In the long term, only a fraction of new, disruptive and trend-setting companies will prevail. Even with little equity, you can quickly increase your money here if you rely on the right company at the right time.
Real estate as a source of wealth
Today, it is just as important for the rich as it was in the Middle Ages: Own land! The super-rich are investing in real estate all over the world. The “Wealth Report 2014” defines super-rich people as individuals who own more than $30 million in private wealth. These super-rich people have invested around a quarter of their wealth in real estate. The trends are increasing. Not only do more super-rich people want to invest in real estate, they also want to tie up more capital in real estate. In Germany, this trend is also evident among the rich. According to recent surveys, 9.5 percent of millionaires living in Germany who own at least 2.35 million euros say that real estate ownership is the most important source of their wealth. Real estate is even four times more likely to account for millionaires' large fortunes than stock market gains through stock trading. Around half of the rich people surveyed regard real estate ownership as at least an enormously important aspect of maintaining wealth. Even those who haven't become rich through real estate swear by it to stay rich. According to the survey, only inheritances and (self-employed) employment are more important for wealth creation. Real estate as investment instruments stands out above all because of its versatility. From increasing the value of the house in which you live, to renting out property, to enormous savings through rent-free living, you have numerous opportunities to generate passive income or protect yourself against future turmoil in the overall economy. Investments in the German real estate market are significantly less risky than in other countries. Germany is one of the world's leading economic nations. 59 percent of German households have non-financial investments, such as real estate. This ensures a stable sector in which you benefit from less risky business models and reliable sales and profits, and can also increase small amounts of capital.
