WEALTH MINDSET: ARE WEALTHY PEOPLE SELFISH?
The message today is, “The wealth gap is too wide and that is because the rich are selfish and keeping it all for themselves.” This of course is followed up with, “We need to take it away from them and distribute it to the rest of us.”
So let’s look at some scenarios where there has been a wealth distribution that was done independent of value exchange. After all, financial wealth is a reflection of value provided. If this is a new concept, then check out the episode from last week.
Original Source: https://youtu.be/U33yEaeoF1o
The most obvious is the lottery. Here is a situation, usually someone, in the bottom economic levels of society – below the poverty line, lower and middle classes, have turned to the lottery as an opportunity to break free of their economic situation. Some come to it from a position of desperation while others for the opportunity to get a lucky break. But anyone purchasing a lottery ticket with a desire to win, demonstrates a misunderstanding of the purpose of money. This is why most who win end up in exactly, if not worse situation than before they won.
Upon receiving the funds, they often feel it is such a large amount that it will just last forever. So they proceed to spend it on consumable items like fancy homes, cars, toys, and/or give it away. In every case, they are trading the money for someone else’s value. Money goes where there is value. If you don’t understand that, it will leave you and go to someone else.
However, when you understand that money goes to value, you will understand that you don’t need to win a lottery. You can control how much you have and continue to grow the amount by increasing the value you create and trade it to others for the things you want. Money is a tool, not an end in itself.
Here is another example.
During the pandemic, governments paid people to stay home. With fake money created from nothing, everyone received a check whether they continued to work or not. This may not look like redistribution, but it is - and redistribution right to the people who are seen as the problem in the first place. Eventually, the money generated in the form of a government debt will need to be returned in the form of taxes. People will forget that the taxes have gone up to make up for the free money handed out.
But what did many people do with that money? They put it into the stock market, driving the bull market up even further and expanding the financial bubble. Does this create more personal wealth? No. They jumped into the markets like visiting a casino. They didn’t take the time to learn how to assess investments, how to build balanced portfolios, or how to turn that free money into new value that they could leverage regardless of the market moves. When the bubble bursts, it will take all those “gains” away. After all, those stock valuations are not based on the value of the underlying company, they are only an anomaly created by an out-of-control government and federal reserve.
At the end of the day, the public just took that free money and handed it over to the businesses and “rich guys” they are calling selfish. Amazon’s Bezos, Facebook’s Zuckerberg, and the rest didn’t come and steal the money out of anyone’s wallet, they just provided services and products people wanted, and the money found its way to them.
Now, I agree there is a wealth gap, and I agree it is too large. However, the gap is not so much because of the wealthy who benefitting, but rather those who have created the rules and laws that benefit the wealthy. And that doesn’t mean you can’t have a piece of that wealth. If you are someone who believes you are struggling because the rich guys are hoarding all the money, it may be time to sit back and ask yourself. How is that money finding them? and What do you do with the money that comes to you?
Are you get it working for you, or are you giving it away to someone who knows how to make it work for them?
If these are new concepts for you and you would like to explore them further to learn how to get the money you have, or maybe the money you will have, working for you, then it might be time to learn how. Drop me a note in the chat and we can set up a call to see how you can get money working for you instead of for everyone else.