The Rich Getting Richer and the Poor Getting Poorer?

Why are the rich getting richer and the poor getting poorer?

The question why the rich are getting richer and the poor are getting poorer is still often heard.

This condition has been a hereditary question for a long time. I wonder why, huh? Find the answer in the following article!

 summary:

There are several factors that influence the creation of living disparities in society between the rich and the poor.

Circle of association within the social strata can also affect the current and future economic conditions.

                   

the phenomenon of Gaps in Society

There are two groups of people in the world, namely the rich and the poor. Even though there is no dividing wall, the two seem difficult to unite.

Rich people don't want to fall and become poor. while the poor are always looking for a door to enter and turn into the rich.

Both will find their own way to secure their interests.

thus, many phenomena emerge in society, one of which is the question, why are the rich getting richer and the poor getting poorer?

We should underline, everyone can change their life. Sooner or later, now or later.

In the following review, we will both answer this question. Come on, see this article until the end, okay!

Why the Rich Get Richer and the Poor Get Poorer

In economics, there is the 80/20 Pareto Principle which makes an analogy of the world's rich people, that:

80% of the money in the world is held by 20% of the population who are rich people. While the rest, namely 20% of the money, is contested by 80% of the human population.

Of course, none of us know whether the theory is completely accurate or vice versa.

However, reality says that the social conditions between the two parties are in stark contrast.

Then why are the rich getting richer and the poor getting poorer? Here are the answers:

#1 Buying Assets

The first reason is they buy assets for investment.

we don't need to rush to blame economic policies or broad factors, because there could be something wrong with ourselves.

Like it or not, the mindset between the two also has differences.

for example, when you have funds, people with a rich mentality will think of ways to maintain, develop, and rotate their money so that it doesn't run out or continue to increase.

Mentally rich people don't overspend on spending. they prefer to buy functional items that help with daily life.

When you feel that your life is just like that even though you have enough income, take another look at financial records.

Wait, Did you record it? If not, then it's time to start recording your finances

#2 Make an Investment

The second reason is because of the rich people's habit of investing.

They reduce consumption needs and divert funds to buy investment instruments.

Not only for personal gain, the rich also invest in charity.

the benefits are not in the form of money, but in terms of cooperation, connections, and opportunities to collaborate with other rich people who participate in the same activities

#3 Make good use of technology

questions about this gap are also answered by the fact that rich people make use of appropriate technology.

With an extensive virtual network, many new billionaire figures have emerged. Examples are Travis Kalanick and Garren Camp.

both are the founders of Uber which currently has developed the transportation business in 633 cities around the world.

Several cities in Indonesia have even been visited.

They managed to take advantage of business loopholes from the large number of smartphone users and fast internet connections.

they can serve customers from anywhere without any barriers.

Technology also simplifies processes in the company.

For example, currently, employees in one division can open the same file spreadsheet, collaborate in real-time, and know each other if one of them is making edits.

without meeting face to face, they can complete financial reports.

If they are not satisfied just seeing the cursor move, they can chat via services such as Skype or Facetime.

#4 Ability to Think and Positive Attitude

Furthermore, we can also see from the way they see their life.

some famous rich people like Jack Ma and Oprah Winfrey in fact come with a dark past.

However, they have broad thinking skills and a positive attitude.

Oprah was a rape victim with a broken home in her youth.

even though he has experienced the ups and downs of life, he always wants to prove himself that he will not be broken because of his condition.

Evidently, we can see the result of his hard work now, right.

#5 Commitment

it turns out, commitment is one of the big reasons for the creation of disparities in social life in society.

When they have a desire, people with a rich mentality will immediately make plans, set goals, and show commitment to achieve them.

thus the poor also have desires. However, often do not dare to set a vision and mission.

Circle of Association in Social Strata

My Financial friends, speaking of the phenomenon of inequality in society, there are also several social circles that can answer the question why the rich are richer and the poor are poorer.

in fact, what we have seen about rich and poor is only the surface.

Because, these two things are not as simple as we imagine.

The following is the social circle in society from various perspectives:

#1 Poverty Circle

first, many less fortunate people associate with other less fortunate people.

After school, because they don't have the business or the will to learn it.

They work hard and eventually marry people who are in the same economic condition.

furthermore, the marriage of two less fortunate people will produce children with the same conditions (if they don't change their lives).

This cycle keeps repeating so that life only dwells there.

#2 Circle of Wealth

the next reality is that rich people always give birth to rich people.

Let's say this. Ardan's family and Bimo's family are very rich. Having been old business partners, the two children also knew each other.

their children are used to business talk, so they also build a business like their parents.

From there, we can take the analogy that if someone has entrepreneur parents, then he tends to become a businessman.

they can start a business because of the support of their parents and their connections.

On the other hand, personally, rich people's children already understand how to manage finances.

That way, they can manage business finances so that they are as big as their parents' business.

however, regarding financial management, nowadays anyone can learn it easily, as long as there is a desire to change for the better.

#3 Poverty Circle of Choice

Next is that many people like to immerse themselves. it could be, they have the provision to be rich, but do not do it.

For example, have a salary of IDR 10 million per month. In fact, he could do a lot of things for that kind of salary.

Starting from investing, opening deposits, and so on.

however, he chooses to buy expensive clothes, hangs out at cafes every night, and changes to a new smartphone every time there is a new release.

When asked to do business, they tend not to want to. But when their friends are successful, they are jealous and end up blaming the system, the government, and so on.

#4 Choice Wealth Circle

Many rich people are born from simple families. However, they are in process.

While pursuing a career, they live a very simple life by saving funds. Unexpectedly, persistence led them to a good change.

so the lesson from this reality is that they like to postpone small pleasures for something bigger in the future.

# 5 Poor Due to Circumstances

We can also see the next social circle from several people who are really unlucky in life.

for example, a bright high school graduate was admitted to university on a full scholarship.

However, he chooses to work because he is the backbone of the family, his mother died, his father was seriously ill.

If he goes to college, there's no one to make a living. or working while studying, that means he has to divide his thoughts into three, for his father, work, and college.

On the other hand, he doesn't have time to build a business. If possible, financial resources are needed for father's medical needs and daily needs.

not to mention when faced with the failure of the startup business.

#6 Rich because of Circumstances

Rich people give birth to the next rich people. This sentence slaps people who are trying, but it's true.

take a look at Jeff Bezos, Elon Musk, or Bill Gates, they come from wealthy families so they can support their children's businesses.

They not only received moral support, but also material. However, that doesn't mean they don't put more effort into growing their business.

they only have the road and help to build their own empire.

There's Always Room for Change

that's a review of the sacred question why the rich get richer and the poor get poorer.

Everyone goes with their own story. After reading this article, I hope you're not pessimistic about success, OK? Good luck!