The reason why poor people are poor s because of their poor spending habits. Poor people have poor spending habits. Middle class people also have Middle class spending habits. While Rich people are rich because of Rich Spending Habits.

Well, poor spending habits means you spend all what you earn. Suppose a poor person earns Rs. 10,000 per month. He takes Rs. 10,000 per month at home but at the end of the months he spends all of his money. So at the end of month again he becomes poor. Unfortunately the Financial IQ of poor people is also poor. So they don't know or want to understand the fact that your money can also work like you. They don't understand that, your money also has the same earning potential like you. So at the end of every month they spend all of the money they earn and becomes poor and again wait for the paycheck of the Next month.

Well, by income middle class people earn much higher than the poor people. They have potential to be very rich. But the problem with middle class people is that, they want to look cool and rich. So what they do is, they simply focus on looking cool and rich every time. They simply focus on impressing other people.

And when it comes to spending, Middle class people always buy Liabilities like Credit Cards, Expensive Cars, Mobiles, Travels and tours on Loan, Personal Loans, Shopping EMIs.....etc......

The higher they earn, the higher they go into a deeper debt. They buy everything on borrowed money.

Everything means everything like Car, Plasma TV, Mobiles, Electronics, Shopping, Tours....etc...

So initially they look rich but on their Financial Statements they are in deep debt. And to repay this debt they have to work like a slave in the economy for whole of their lives.

Secondly, Middle Class people focus on Income Statement Only. They never focus on the Asset Column like Rich.

Well, rich people are those who spend on buying Assets. They all time focus on the Asset Column. They only focus on growing their Asset Column. So when they buy Luxuries like Expensive Cars, Mobiles, Electronics, World Tours....etc?

Well, From the Income from their Assets.

Rich buy Luxuries from the Income of their Asset Column and not from their Hard earned Income. Their hard earned Income goes only towards buying Assets.

If rich want to buy some Luxury item than they first buy some Asset and Grow it until it throws sufficient Cash flow to buy that Luxury Item. What Middle Class do when they want to buy some Luxury Item?

Well, they Just take a loan, borrow money from Bank and buy that Luxury item from borrowed money. Initially it's easy. But in the long-run its very tuff. Because they have to work in the economy hard until they pay off that Debt.

But Rich people buy Luxury items from the Passive Income of their Asset Columns. So they don't have to work for that Income because their Assets are grown sufficiently that it can produce sufficient Cash flow to cover all of their Expenses.

So these are the differences between the Money (Spending) Habits of Rich, Middle Class & Poor. In Summary, Rich spend their Money Behind Assets, Middle Class take a huge debt and spend their money behind buying Liabilities and Poor people simply all of the money they earn behind Expenses............