Is the gap between the Poor and the Rich increasing?

When the Forbes first compiled the list of top 400 richest people on earth, their combined net worth was $93 billion, this was in 1982 while todays top richest 400 have combined net worth of around $ 2.3 trillion. That is increase of around 24 times in around 3 decades. While in the same period average houshold income rose only 2.8 times.

This fact gives the answer to the question as yes, the gap is increasing.

Let's do some brainstorming and ask some logical questions-

Q. Is it of any importance to us to think about it?

A. Of course yes, if we don't know where are we in the society and how the society dynamics works then we can not do anything to get to an advantageous position or benifit more from the social dynamics.

We can put our abilities for better use if we know how our society works.

Q. Why is the gap?
A. To answer this question we have to ask more questions-

Q. What does rich people do different than the poor?
A. They generally run the business or are investors or innovators or doing something very productive to the society or solving one or more problems of society. While poor people are doing the job for their employer and spending most or all their hard earned money.

Q. What are the advantages the rich have over the poor?
A. They have access to capital, access to intelligence, access to manpower and most importantly they make better use of these things than the poor does.

Q. Does the rich people deserve the money they earn?
A. Yes, they have earned their money in legal ways. Generally people buy their product because they are providing value. Generally they bring the revolutions or innovations to the society which make the living easy for the society. They provide the jobs for the most of the population. So they do deserve the money after doing all this.

So the gap is because of what people do. The rich do different things than the poor.

So the next question arises.

Q. Why was the gap narrow in the past and expanding since then?
A. Before the industrial revolution the gap was narrow because mostly the performance of everyone was linked to physical strength, which was almost equal. No one performed exceedingly better than other. The difference between the performance of the best performer and the least performer was very thin.

But then few people started using there brain more and invented things that made them perform much better, both in terms of quantity and quality, their efficiency was higher. For example use of steam power instead of muscle power. So obviously they received better compensation than others. And they deserved it.

Now the technology is much evolved and gives leverage to better ideas. Thoughts can now be converted in to reality more quickly than ever. For example if you want a kind of app on your smart phone which is not available on the playstore, and suppose you know how to make an app, then you can quickly make than app and if it is really usefull then quickly it will spread on internet like a wildfire, just like the facebook or twitter or whatsapp got popular quickly. As a result you will definitely get rewarded much more than if you were doing the same thing a century ago. People are also more receptive to change today than ever.

That is why the gap between the rich and poor is increasing. Basically it is the gap between the knowledgable and the average people.

So the most important question-

Q. What is the use of this knowledge of the difference between rich and poor to us?
A. This knowledge gives us the CHOICE, whether to be RICH OR POOR. To be poor you just have to keep doing your job under a boss. Or to be rich, you have to work on your ideas and leverage the one which give value to the society. Then you will be rewarded according to the value you gave.

Or you can also stand by or support good ideas and there by benifit in the success of that idea. For example if you purchase shares of a company providing value to the society with ethical business and ethical management.

There is one more way of leverage which anyone can use from like right now. That is THE POWER OF COMPOUNDING. We will learn about it in later post.

So with this knowledge of choice in our arsenal now we will end this question and answers session. We will meet soon, till then, Have a Nice Day..

Sumit
The POWER is when,
you use ODDS
to get EVEN..

Why you want to be rich? Using peer pressure as positive motivation

We ended last post with asking ourselves why I want to be rich?
Truely speaking most people does not have a clue about why one want to be rich or why they want to earn money? It is not a simple question. Just dwell over it and try to get the answer.

The answer is your goal. And to set a goal is a very important thing befor going forward otherwise we will be lost. As per the book by Maxwell Maltz- Psycho-Cybernetics humen brain works well when used as a goal seeking mechanism. So to define the goal is the first step to do.

So what is your goal? Just take a piece of paper and write it down. Or you can also write in the comments section so that we can help each other in building a better goal. Like I am writing here.

My near term goal is to be financially free, I should be earning more than my expences through passive income (Passive income is the income which comes without any input from me).
That is my investments are earning for me and growing by themselves.

The time frame is 3 to 4 years.

A side by side goal is to help people achieve it. So we are together in this journey if you also want to be financially free.

The long term goal is to be a wise and successfull businessman to which people come for advice and help in their business.

The time frame is 10 to 15 years.

I am only writing the big goals though they keep on evolving during the course. There are many tiny goals with monthly or weekly or daily timeline. Goals should be achievable in nature and part of the bigger goal. These tiny goals gives us the sense of achievement in our day to day life. And trust me, it is working for me. It keeps me motivated. If we have to do a lot of work for a long time to get the result then we get bored and lose interest after some time.

Always define a goal with a timeline. Do it for small goals first, you will start getting results and will automatically do it for bigger goals. It will soon become a habit for you.

Just try this exercise. Decide what you want. But first write down your goal and why do you want to be rich??? I would like it if you write in the comment section. Stating your goal publicly will put you in the positive peer pressure to achieve your goal which is a good thing.
So, go ahead..

Sumit
The POWER is when,
you use ODDS
to get EVEN..