Everyone is different. Many people can create more wealth and become rich, while some can be poor and happy to be poor. The biggest difference between people is due to differences in thinking. Many people are good at using money to obtain wealth for themselves, but some people are not so good at it. Today let’s talk about why it is the poor who borrow money and the rich who lend money?

Why it is the poor who borrow money and the rich who lend money?

Want to gain wealth , what many people want is to start a business and become an entrepreneur. We know that every business needs bank loans. The bank's money mainly comes from depositors. The bank absorbs deposits from the people and then lends them to outsiders. The interest rate difference between deposits and loans during this period is an important source of profits for the bank. Those who can get loans from banks are generally those who have assets and collateral. Most of the people who save money in banks are ordinary people who are eager to accumulate wealth by saving money. Unfortunately, the money they have lying in the bank is shrinking day by day. Entrepreneurs, on the other hand, are using their money to create more wealth.

Moreover, under the trend of domestic inflation and excessive currency issuance, the money in the bank is shrinking day by day, and the liabilities are day by day diluted. It is conceivable that a loan will be more cost-effective than saving money.

So for the rich, there will be many places that need funds, while the poor may not have better investment channels. Moreover, the current environment is more favorable for loans. Therefore, what is reflected is that the poor are saving money, while the rich are taking out loans. Here, we do not encourage you to borrow money from banks irrationally. You must carefully consider how much you want to borrow and how you will use it.