Why Do We Constantly Want to Be Rich But Only a Small Part of People Get Rich?
Conspicuously, the desire to become wealthy is a common dream shared by many. However, the stark reality is that only a fraction of the population achieves this goal. This phenomenon is not unique to capitalist societies; even academic success (e.g., excelling in the world of academia) showcases a similar distribution of achievement, with a minority excelling.
The Road to Wealth
There are several reasons why the journey to wealth proves challenging for many individuals. Firstly, the process of accumulating wealth often requires significant time and dedication. Success in any domain, whether in finance or education, demands persistence and hard work. Understanding the key components of wealth creation is also crucial. For financial stability, one needs to comprehend critical numbers and milestones, such as:
A living wage is approximately four times the US Federal Poverty Level when you have no assets. To own a home and have income-producing assets, additional steps are necessary. Once you reach a certain level of assets related to the taxpayer's portion of the national debt, a living wage becomes two times the Federal Poverty Level. Investments should be made at a rate that matches or exceeds the inflation rate.Economic Structures and Wealth Accumulation
Despite these clear financial frameworks, many individuals struggle to achieve wealth. A significant factor is the economic and systemic structures in place. In capitalist societies, wealth tends to be concentrated among a few, often due to deregulated markets and unchecked practices by the wealthy elite. For instance, in the United States, the last 40 years have seen a significant shift in wealth distribution. Initially, the country boasted one of the highest quality of life scores, but over time, the nation's position has dropped to 23rd worldwide.
Psychological and Societal Factors
Another critical aspect is the human psychology driving the pursuit of wealth. Many individuals chase material wealth not for the sake of having more money, but to not feel destitute. This sentiment is echoed in a personal anecdote shared by the author, who eventually realized that the goal should be to wake up with a sense of well-being instead of merely focusing on better sleep.
Additionally, the prevailing societal narrative often emphasizes good credit scores and debt management over savings and investments. This mindset can be quite detrimental, as unsecured debt carries a high interest rate, which could be more profitably invested elsewhere.
Outlook on Structural Changes
Tackling the issue of wealth disparity requires a multi-faceted approach. Reining in corporate practices, ensuring fairer tax policies, and promoting financial literacy could go a long way. Furthermore, individual efforts to align personal financial goals with long-term vision and strategic investments are essential.
In conclusion, while the desire to be rich is contagious and understandable, achieving this goal is a complex interplay of economic factors, psychological drives, and systemic issues. By recognizing these dynamics, individuals and policymakers can work towards a more equitable distribution of wealth.