Why Do the Rich Get Richer and the Poor Get Poorer?

Tuesday - 01/09/2020 13:58
This sentence has become the common and popular controversy we can get to hear and see the internet world or the real world every day.
Why Do the Rich Get Richer and the Poor Get Poorer?
The irony is the one who say this sentence, are the common people in general. So, what does this sentence to entice our population so angry? The research shows that today’s world biggest problem is the income inequality.
The middle-income and below, either they remain the same, or their financial problems become more tedious and worse due to the changing and fast economy, be it the rising inflation, government’s policy, social unrest and etc.
Still, now there are a lot of millionaires growing in the world today, and for the rich capitalists, their wealth are still growing. It has caused the division in this world of 7.2 billion; 1% (72 million) rich capitalists are controlling 98% (7.12 billion) of the common people’s wealth and assets.
That is why in the news like etc; Occupy Wall Street movement, is the protest movement began on the 17th September 2011 in the Wall Street, New York City’s financial district. The main issues are the social and income inequality, greed and corruption of the corporations and the government, usually are from the financial services sector. Their slogan, We Are The 99%.
It does actually explain their feelings of what they are, how they feel unfair; feel that they have the right to the right proportional income or wealth. That’s immediately retrace back to China in 50s to 80s, when China was the Communist country, which everything must be distributed among the people, regardless you are rich or poor(that’s sound good isn’t it??).
Thus, there is no perfect politics and government in the world. Look at China for example, till today; they are still on the path of innovation, however greed, corruption and poverty are their major problems.
Now we shall see the Poor’s parts. Why today there are the poor still get poorer? That doesn’t mean definitely the poor level; it’s including the low level to the higher level of income group. There are some reasons:
1. Blaming when things goes wrong
There’s no wrong complaining about something that is something you are unhappy about. However, there is a limit to it; excessive complaining. Life, everyone’s life is different.
We will definitely face up and downs, that’s because there is no smooth-sailing to it. If we keep whining that is like, “my life sucks, screw my life, there is no meaning to it, my life is dull and example” instead of pondering of what we can do about life, do you think today Serena Williams, the famous female tennis player and Enrique Iglesias, famous male singer will be what they are today?
They have complained in their life before, however still they change their instead of sitting down and whining. Government, like I said before, there is no perfect politics and government in the world. Usually the common people complain; bad policy, unfair treatment, racial discrimination, corrupted government, conspiracy and all kind of things that the common people can think about.
Why not, instead of scolding the government, we can use our brain to think of a business or investing ideas to help the society, people and the world? There are a lot of things that we can do in our life; it’s a matter of what you can contribute, than the negative prospects.
2. Thinking
Mind plays a strong part in our life. It can either make us strong or weak mentally, depending on the environment, time, people and results.
I understand it’s hard to stay positive on the mind. However, we must remember that those famous people had it not easy. Like our famous Microsoft founder, Bill Gates. If he had given up at that point of time, facing hundred or thousand rejections for funding of the prototype he had done, do you think we still today Microsoft still exists?
Walt Disney, founder of Disney; hasn’t for his creative and imaginary thinking which during that time no one want to hire him, because they feel his ideas is unrealistic and childish, but he still persists, do you think that today we still have the chance to visit Disneyland?
That’s the matter on how our thinking like. It plays an important part in our life. Today, majority of the people are easily to give up, swaying by the negative thoughts, influenced by peers with negative mindsets and mood swing easily.
Reasons are being, they couldn’t get what they want, certain things are not important, they have no direction in life, not willing to try, not willing to learn from the mistakes and examples.
3. Money
Finally, the favourite topic of all. We always complain that money is not enough; then my question to you is how much is enough?? Today, almost majority of the common population spend their money rather than using their money for importance.
Example, buying excessive of expensive branded goods, branded cars, spending lavishly in high class restaurant or café, swiping for their credit cards without looking at the price. These are liabilities; they won’t help you to produce money.
As a result, lot of people owe the banks money because of credit cards, getting debts, unable to pay off their debts, amounting $50,000 to maybe even $200,000?
Driving a posh car, like Lamborghini, Porsche or Ferrari, doesn’t make us rich. Carrying the branded items like LV, Gucci, and Prada doesn’t make us feel high class. That is why today especially the middle income group face a lot of financial difficulties, family problem, work problem. Worse comes to worse, bankruptcy.
Lavish living lifestyle doesn’t make us very rich, it’s a stupid thinking and analogy to flaunt to people when you are actually very poor and struggling to provide for your family.
Why not use this money to improve ourselves, such as a financial knowledge, so we are able to use the knowledge to gain more income? That’s the Poor are getting Poorer because of their nonsensical and immature thinking, and greed.
The world famous investor, Warren Buffett had once said: “Living on credit cards and loans won’t make you rich. When you are debt-free, save some money for investments.’’
Now we shall see the Rich’s part. Ever wonder why the rich are getting richer every day? Today we shall focus on this portion. In the US, approximately 7% of households are millionaires, 20% inherited of their family wealth, while the 80% are self-made millionaires, and they earned their cash on their own.
Today, Singapore has the most millionaires in this tiny city, increased by 14%. So do they become rich by chance or luck?
In fact, both play a part too. Hard work is the important role for them, but of course, they must be shrewd and smart of what they are doing, because we are still living in the world, instead of the fantasy world.
So let us see the personality traits of the riches.
1) Rich people lead frugal lifestyle. They don’t spend on unnecessary items and live below their means. Majority are born from poor family.
2) Rich people are financially literates; they study, plan and strategizes investments. This will help to earn the good profitable return, random amount of income passively.
3) Rich people are business owners and sophisticated investors.
4) Not all of rich people are top graduates; some didn’t even graduate or go to college
5) They have the strong desires, positive thinking, an ambition and vision of what they want in their future and life.
6) The willingness and eagerness to learn, getting out of their comfort zone, interacting with people, doing the impossible.
7) They committed most of their time doing things that will benefit the society and the world.
8) They believe poverty is the root of all evil, because they feel that we have the right to be wealthy.
9) Rich people are usually up for the challenge to do something, because they want to push their own limits, believing that they can do it.
10) They know when and how to handle, manage and take risks.
11) Rich people like to be surrounded with like-minded people; they believe this will motivate their thinking and their ways of doing things.
12) They contribute 10% or 20% of their wealth back to the society, they believe in giving back.
To summarize the whole article, we can be part of the rich group one day. Its matter of how we are going to do it, rather than spending half of our life blaming other people instead of reflecting on ourselves.
Otherwise, don’t stick to that sentence that will let our life stuck on the same road, having the kind of thinking that the world owes us a living. The Earth is round, everyone’s life is different. It does matters whether what kind of life we want to stick, a poor, stable or a financially free life. The answer is in our hands.

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