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- Understanding Finance
Why the Rich Gets Richer and the Poor Remains Poor
Fighting Economic Hardship
Most people in the U.S. have already or will face some form of financial or economic hardship at some point in their lives. While those who have overcame such difficult times have made a vow that they will do all that they can to prevent this from recurring in the future, some have long given up, and there are others who have never even tried to do anything about it - they are seemingly satisfied with just living from paycheck to paycheck!
For the latter group of individuals, even if they may occasionally find themselves with a few dollars to spare, it appears as if they are just too scared to invest even those few extra dollars of their hard earned wages in any cash generating ventures. The question is, for those who have a job, is it really that they are simply not interested in any income stream other than their 9-5 job that pays just enough to put food on the table, and cover the monthly bills.
Sometimes, I personally think that the difference between these two groups of people(i.e. those who have risen to the top financially because they had no desire to remain poor for the rest of their lives and those who refuse to take the chance or seize an opportunity that will allow them to generate some extra income)is that the former group can be considered high achievers or opportunity seekers while the latter group of people are somewhat low achievers or sometimes lack motivation and drive.
Somehow,when I think of those who have the desire to lift themselves out of dire poverty at all means, or at least try to better their financial position --- to certain extent, this desire of theirs can be compared to that strong desire I always had to get to the top and stay on top, back in the days when I used to play soccer. Although it may not work 50% of the time, however, I never usually feel that bad, knowing that at least I tried my best!
I have played soccer for many years in college, and even after graduating from college. The fundamental or main strategies I can still recall is that if my team were to score the first goal, our main focus at that point was to defend this goal point (what we have), while trying all that we could to score more goals (to achieve more) just to ensure that we stayed on top.
On the contrary, if my team were yet to score a goal (we had nothing) or were down in goal point, our primary strategy at that point was to strengthen our attacks in every possible way we could so that we could come out on top. The bottom-line is that, when we were down, we had all to gain and nothing to lose, if we were to try every and any practical strategy that was available, in our effort to score sufficient goals to put us on top.
The message I am trying to convey here is that, when it comes to some wealthy individuals versus some poor persons, the wealthy individuals can be compared to my team being on top. They will do everything in their power to stay wealthy or to increase their wealth. Therefore, they will seek out all possible investment strategies and are willing to take all the necessary risks to strengthen their financial position. The more wealth they build, the more determine those individuals become to achieve more.
Contrarily, some poor individuals who should be willing to do anything and everything in their power to make it to the top, are simply not doing so, instead, their major concerns are that they might lose the little saving they have if they should try some form of investment. As a result, they tend to hold unto this little, thinking that they might be able to gradually save enough over the years to build a decent retirement nest. Understandably, some investments, can be risky, but sometimes we all have to take the chance! Finally, there are others who simply tend to be satisfied with being poor, or with whatever little they possess, especially if they were brought up poor and will not even think of any other income stream or investments.