Having more wealth gives you access to more efficient financial vehicles that generate (or maintain) wealth.
When you're poor, you are taxed:
- High interest loans
- Remittances with high fees e.g. with Western Union
- Using Cash (on average, you pay a tax on items which have the credit card fee priced in)
- Access to banking (low interest savings/checking accounts)
- Credit cards with high fees, low kickbacks
As you get wealthier:
- Credit cards with kickbacks (e.g. travel, cash back)
- Access to bank accounts with higher interest
- Access to international banking
- Access to international stock markets
As you get wealthier:
- Ownership of businesses which allow you to store your wealth without getting taxed
- Ownership of international businesses which allow you to find the best tax situation internationally
As you get wealthier:
- Access to private markets
- Ownership of businesses where you can directly partner with other businesses
- Running a financial institution
- Running a business so large that you can influence governments
- ...