Some of the best conversations I have had, have been with my present roommates. A night ago, a roommate and I had a long conversation about how money works and why the middle class remains in the middle. We spoke about the popular “old money” owned by families for over generations, the one percent and the other ninety-nine percent in America.
While growing up I was curious about these types of topics, I was curious as to why so many people worked hard and still never made it to the one percent. I have met well-educated people with barely any knowledge of finances.
Then I came across two successful men, who have spent a great of time trying to create awareness for financial literacy, which I think is a big solution to economic inequality today. Earl Nightingale and Robert Kiyashaki changed my understanding of The Rich and how they operate differently.
Now, many of us like to dwell with the idea that people are rich because their families have acquired large wealth over a large period of time, we fail to remember that money is very fleeting and doesn’t last very long unless it multiplies. But yet, we argue that the money has kept them going. In reality, the money isn’t what makes the rich richer, its their financial practices that do. Majority of these rich families not only educate their children and relatives academically but also financially. And many people today lack financial literacy but not educational literacy. Which explains why only a few have all the wealth.
If you still do not believe this, then I ask you this: If you were given $1m today, how capable are you to invest it well and make it grow in five years?
Many people will probably say, “yes” but in reality only those who have a great deal of knowledge about how money works can. Why do you think the education system failed to teach you how to be financially literate? The education system for most part fosters the middle class. In order words, Financial literacy is the real solution to economic equality not education. Education definitely has a lot advantages but I do not think economic equality is one of them.
If you still don’t understand this post, watch out for the next one.