The difference between the rich and the poor is financial knowledge

[boyptc]

I agree because if someone wins the lottery and doesn't have the discipline and financial knowledge, they'll be spending that money recklessly.

And with the huge money that they have, it won't even take a long time until it's all spent and they become bankrupt again.

This accounts for some of the reasons why you find those that have won the lottery and did it huge in recent times consider options of being paid gradually through a couple of years. Where they get to earn several thousands of dollars that numbers even in the millions through several months.
It’s basically not knowing how to invest it but still, you don’t intend to waste it and so, you gradually withdraw from it while, you seek the best means to utilize it.

There would always be those that would have the finance haven’t being lucky but, when the knowledge isn’t there and you haven’t being actively investing or taking risk with business, you just wouldn’t know what to do with it.

The rich would, it’s how they built their wealth and have gotten several layers of experience on it. It’s just having to repeat the procedure over again.

Yeah, I've seen those accounts where the winners have chosen to get paid in a yearly basis and don't opted to go for the lump sum.

There are good and valid points whichever choice they'll make. And for these people that have chosen to receive gradual payments want to secure that they'll continue to receive for as long as they can or how much it is depending on the contract as if it's a pension.

While those who will do a lumpsum says that they will not know what awaits tomorrow so that's the best choice for them.

Either of the choice really depends on the person on how financial knowledgeable and comfortable they are.

[Iranus]

The spending habits and the aspects of discipline that a wealthy person has. They have achieved financial freedom because before doing that, they've planned it well and they have sources that can make money for them without even doing too much effort.

While the poor, they don't have a lot of resources and when they earn big, what's on their mind is short term and to spend everything.

Spending habit and financial discipline of rich and poor people can differ in some cases.

However, its an oversimplification to say that wealthy people achieve financial freedom simply because they planned everything carefully beforehand. Wealth stems from many factor including income, opportunities, circumstances, and even luck. Planning and discipline are important, but they're only part of the bigger picture.

I also do not agree that poor people only think about the short term and want to spend everything. Someone with a high income and plenty of assets has a much easier time managing money than someone who is barely making enough to get by.

[goldkingcoiner]

The rich man has information at his finger tips especially investment. The rich man has knowledge because he has acquired financial knowledge and a certificate to back it up but the poor man is always chasing degrees here and there. Here, education is not the problem but financial and investment knowledge are. Take Bitcoin for example,there are those who have made a whole lot of money from it. Those who made money from Bitcoin are those who have the knowledge of it. The poor man chases degree without financial knowledge,am not saying chasing degrees is a bad thing but rather am saying balance it with financial knowledge. What is your take

That is a very simplistic take on things. In reality, a lot of factors decide the gap between rich and poor. Education is one of the most important ones but no matter how educated you are, if you live in a third world country and have to take care of yourself and your family then you will spend your time working a shit job with shit pay. Because that is everything that is available to you.

So it is not about chasing degrees or having financial knowledge. Although I can agree with you that that knowledge can improve your situation considerably, you are still bound by circumstance.

Reality is unforgiving.

[LUCKMCFLY]

Well, that's a bitter truth but we must have to swallow it because most people who've degrees either work as employees or they're jobless. The ones who've financial knowledge can at least make some money here and there and even become rich by doing that, but those who spends many years to get the degrees will get disappointed if they don't get a job and if they for some reason don't get a job then things will be even more harder for them. Learning new skills is important alongside the degree as that can at least allow someone to earn something when a degree holder doesn't get a job. However, I still believe that financial knowledge is way more important than having a degree because it will support someone in long term.

That's right, but you know that comes from education. I've always shared Kiyosaki's view that the traditional education system is flawed because they don't teach us how to build wealth from a young age. Instead of practical accounting or business education, schools focus on subjects that don't prepare people for financial independence.

So, I'd say the realistic path for a professional is this: if you work as an employee, earn money, invest a portion into Bitcoin, wait for compounding returns, start a business to break free from the traditional rat race, and reinvest profits back into Bitcoin and other hard assets for the long run. That's how real opportunities continue to open up.

[YOSHIE]

The poor man chases degree without financial knowledge,am not saying chasing degrees is a bad thing but rather am saying balance it with financial knowledge. What is your take

In principle, in my opinion, the difference between rich and poor people lies in determining how they manage the economy passively, not in terms of how rich and poor people have a lot of money, when they are great in their financial literacy in general.

Many rich people borrow money from other people, they prioritize high profits, which is different from poor people when they do the same things as rich people, Poor people think borrowing money is more for humanity and life, not for high profits.

[Female King]

The rich man has information at his finger tips especially investment. The rich man has knowledge because he has acquired financial knowledge and a certificate to back it up but the poor man is always chasing degrees here and there. Here, education is not the problem but financial and investment knowledge are. Take Bitcoin for example,there are those who have made a whole lot of money from it. Those who made money from Bitcoin are those who have the knowledge of it. The poor man chases degree without financial knowledge,am not saying chasing degrees is a bad thing but rather I'm saying balance it with financial knowledge. What is your take

Depending on which country you live in, but these days degrees are quite expensive to acquire, and poor people don't have the means of acquiring them in the current dispensation of the economy.

Making money is far more easy than to sustain, spend and multiply that money, this time, certificate or degrees steps aside and real experience and skills come into play.

So, in conclusion, degrees are not the problem, but the ability of the holder to adapt himself to the necessary procedures, discipline, and risk tolerance to be able to make the difference in financial growth through investment and business.

It's not always easy for a common man to acquire a degree in some certain country everything always come so easy to the rich people, but right now mostly in my country if you can afford to expenses of getting your self a certificate you can learn some good skills that even if you have a degree you can doing something and earn some money to help take care of your bills.

People could still get a degree without work so it's important to think or skill first if you can't afford education and get your self a degree.

[Bluedrem]

I don't think so. I think the poor don't have much experience because they don't have access to a lot of money. Bond Even if a rich person knows how to invest in real estate, a poor person doesn't know it because they don't have any opportunity to invest in real estate because they don't have enough money to invest here, so even if they want to, they may not be able to gain this knowledge.
More specifically, the rich have much more opportunities than the poor. So we have to remember that money sometimes limits people's knowledge.

[Gost ms]

The rich man has information at his finger tips especially investment. The rich man has knowledge because he has acquired financial knowledge and a certificate to back it up but the poor man is always chasing degrees here and there. Here, education is not the problem but financial and investment knowledge are. Take Bitcoin for example,there are those who have made a whole lot of money from it. Those who made money from Bitcoin are those who have the knowledge of it. The poor man chases degree without financial knowledge,am not saying chasing degrees is a bad thing but rather I'm saying balance it with financial knowledge. What is your take

Depending on which country you live in, but these days degrees are quite expensive to acquire, and poor people don't have the means of acquiring them in the current dispensation of the economy.

Making money is far more easy than to sustain, spend and multiply that money, this time, certificate or degrees steps aside and real experience and skills come into play.

So, in conclusion, degrees are not the problem, but the ability of the holder to adapt himself to the necessary procedures, discipline, and risk tolerance to be able to make the difference in financial growth through investment and business.

It's not always easy for a common man to acquire a degree in some certain country everything always come so easy to the rich people, but right now mostly in my country if you can afford to expenses of getting your self a certificate you can learn some good skills that even if you have a degree you can doing something and earn some money to help take care of your bills.

People could still get a degree without work so it's important to think or skill first if you can't afford education and get your self a degree.

It is a best idea to pursue education and skills in parallel. If a person is educated or wants to get a degree first, then it will definitely take some time for that person to acquire skills. But if a person pursues both in parallel, then it is definitely good for that person and after acquiring skills, that person will not have to wait for a degree and after acquiring a degree, that person will not have to wait for skills or aptitude.

From the time a child goes to school, every parent should teach their children work, such as, what profession they will associate their children with in the future, making them skilled from a young age and when they are in the midst of this work, they will be able to complete their work better when they grow up and they will not have to wait for the last minute to acquire aptitude.

[Solodoski]

Financial knowledge is very good, but I don't think that's the only thing that separate the rich from the poor, because some poor people also have good financial knowledge on what to invest on and make good money, but they don't have the capital to even start investing. The rich has the advantage of capital, so their financial knowledge works better than that of the poor.
The poor see degree as a way to escape poverty,  because they believe they can get a good job that will bring them income, so as to use for investment.  Like I mentioned earlier financial knowledge is very good, but you also need the capital to invest and become rich.

[MainIbem]

You'll barely see a rich person working to get paid, they either use their money to pay people to work for them and make more money or make more through investments. Another thing is that rich people dislike liabilities, while poor people spend their money on things that won't yield profits the rich values asset. Poor people are scared of taking risk but rich people are aware that life is full on risk so instead of being afraid they study the risk and manage it properly. Poor people take loan to settle essential needs while the rich sees loans as leverage for their business or to buy assets.

[icebar]

The spending habits and the aspects of discipline that a wealthy person has. They have achieved financial freedom because before doing that, they've planned it well and they have sources that can make money for them without even doing too much effort.

While the poor, they don't have a lot of resources and when they earn big, what's on their mind is short term and to spend everything.

Spending habit and financial discipline of rich and poor people can differ in some cases.

However, its an oversimplification to say that wealthy people achieve financial freedom simply because they planned everything carefully beforehand. Wealth stems from many factor including income, opportunities, circumstances, and even luck. Planning and discipline are important, but they're only part of the bigger picture.

I also do not agree that poor people only think about the short term and want to spend everything. Someone with a high income and plenty of assets has a much easier time managing money than someone who is barely making enough to get by.

I agree with your statement, especially in the context that financial situation cannot be explained solely by a person's personal discipline or spending habits. If a person's income is low, a large part of his income goes to meeting food, housing, medical care, and family needs, and it becomes difficult for him to save. On the other hand, a person with a high income has much more opportunity to save. Therefore, whatever our situation, it is important to control our spending within our means, build some savings, and try to increase our financial capacity over time. In my opinion, the most realistic view is that if the income is low, rather than blaming him for his current financial situation, we should understand his income, opportunities, and circumstances and try to gradually improve what is under our control.

[Xackie]

Financial knowledge is very good, but I don't think that's the only thing that separate the rich from the poor, because some poor people also have good financial knowledge on what to invest on and make good money, but they don't have the capital to even start investing. The rich has the advantage of capital, so their financial knowledge works better than that of the poor.
The poor see degree as a way to escape poverty,  because they believe they can get a good job that will bring them income, so as to use for investment.  Like I mentioned earlier financial knowledge is very good, but you also need the capital to invest and become rich.

‎You are right. Capital is  the main thing in which poor people lacks. Sourcing for capital is very hard , because no one would want to borrow a poor man money for startup instead they are willing to borrow someone who has an asset, connections or a proven track record. They feel more confident to trust a rich person. Take for an example a poor man has an idea of building an EV factory, if he pitched the idea to an investor, they might not listen to him. But the story will be different if it was a rich man. A poor man can easily get an idea, but it dies off easily because of funding. They may know exactly what to do, but without enough resources to execute those ideas, their financial knowledge alone may not be enough to change their situation.

[Emeraldo]

‎You are right. Capital is  the main thing in which poor people lacks. Sourcing for capital is very hard , because no one would want to borrow a poor man money for startup instead they are willing to borrow someone who has an asset, connections or a proven track record. They feel more confident to trust a rich person. Take for an example a poor man has an idea of building an EV factory, if he pitched the idea to an investor, they might not listen to him. But the story will be different if it was a rich man. A poor man can easily get an idea, but it dies off easily because of funding. They may know exactly what to do, but without enough resources to execute those ideas, their financial knowledge alone may not be enough to change their situation.

A poor man has to work harder to escape poverty so the society is not going to laugh at him for been unable to take care of his needs. The world respect the rich and take the poor as a lower option. The wealthy people are rich in mind and know how to find their way to develop more business opportunities that will make them the most money while the poor are left to struggle for everything they want to acquire.

You struggle to get a job, get a good house, pay bills, take care of your family and many other things.
We still have poor people that have dreams and good business proposals but they don't have who is going to sponsor or give them loan to do business so they can compete with other people.

[fruktik]

Mate i will not blame poor people just because they are chasing degrees because from childhood the brain of most people are programmed like if they get good grades and a degree and also a good job their life will be secure. That is why many people follow the same safe path. I will blame a person who have a degree and still doesnot know how to invest a money or manage there money because investing is a different field and also schools doesn't taught to the kid how to invest but a person learn this by its own.

You're so right. Neither school nor college teaches investing. So how can I acquire this knowledge? The only option is self-study. There's no other way.

I had to find all this information myself and spend a long time poring over it. It's quite a difficult process, but it yields good results. There's just one big "BUT." Information alone isn't enough. You need experience. You can't do without it. It takes years to become a seasoned investing expert. But even then, no one can guarantee consistent profits.

[CryptoBuds]

You'll barely see a rich person working to get paid, they either use their money to pay people to work for them and make more money or make more through investments. Another thing is that rich people dislike liabilities, while poor people spend their money on things that won't yield profits the rich values asset. Poor people are scared of taking risk but rich people are aware that life is full on risk so instead of being afraid they study the risk and manage it properly. Poor people take loan to settle essential needs while the rich sees loans as leverage for their business or to buy assets.

You're right that it's rare to see rich people working to get paid. They usually diversify their income through different financial instruments. 

However, its unfair, and even somewhat dismissive to say that poor people are risk averse, afraid of debt, or don't value asset. Poor people simply have fewer choices, and they are making decision based on their financial situation.
Trust me. If you have $10M, you have far more opportunities to take risks than if you only had $10k and still needed that money to cover basic living expenses.

The difference between the rich and the poor isn't always about mindset or knowledge. It also comes down to each person's resources and starting point.

[Mr Reporter]

Financial knowledge is very good, but I don't think that's the only thing that separate the rich from the poor, because some poor people also have good financial knowledge on what to invest on and make good money, but they don't have the capital to even start investing. The rich has the advantage of capital, so their financial knowledge works better than that of the poor.
The poor see degree as a way to escape poverty,  because they believe they can get a good job that will bring them income, so as to use for investment.  Like I mentioned earlier financial knowledge is very good, but you also need the capital to invest and become rich.

What a frustrating experience this has been, causing many poor people who don't have money to build their dreams the hard way and still they don't have any means or ways of making money…Financial knowledge without capital can be very frustrating alot, let's make use of such an example so you can know that Bitcoin, land, or business is going to boost 5x in the next 1 year…and monthly basis income is no where close to even feed 3 children, where is the money for investment…it as simple as this knowledge tells you what to invest in, while capital gives you total permission to do it…okay now let say the rich can afford to be wrong 5 times,the poor often only get 1 shot. If that 1 investment fails, it sets them back years. That’s why it’s so hard for the poor to become rich easier….

[boyptc]

The spending habits and the aspects of discipline that a wealthy person has. They have achieved financial freedom because before doing that, they've planned it well and they have sources that can make money for them without even doing too much effort.

While the poor, they don't have a lot of resources and when they earn big, what's on their mind is short term and to spend everything.

Spending habit and financial discipline of rich and poor people can differ in some cases.

However, its an oversimplification to say that wealthy people achieve financial freedom simply because they planned everything carefully beforehand. Wealth stems from many factor including income, opportunities, circumstances, and even luck. Planning and discipline are important, but they're only part of the bigger picture.

It's also the different mind setting of the poor and the rich. The rich won't splurge the money that they have just earned.

They think that they can grow it even more before enjoying it. Whilst the poor, they have a complete different mindset like the YOLO.

I also do not agree that poor people only think about the short term and want to spend everything. Someone with a high income and plenty of assets has a much easier time managing money than someone who is barely making enough to get by.

It can be for some other people and I think it's fair to say that both some wealthy also think short term.

But they're incomparable based on their status. I've got friends that are still in the same situation, and all want to do is to brag in the social status they have through their online accounts.

IMO, the social media has made these people very confused and distracted of what real wealth is.

[DabsPoorVersion]

You'll barely see a rich person working to get paid, they either use their money to pay people to work for them and make more money or make more through investments. Another thing is that rich people dislike liabilities, while poor people spend their money on things that won't yield profits the rich values asset. Poor people are scared of taking risk but rich people are aware that life is full on risk so instead of being afraid they study the risk and manage it properly. Poor people take loan to settle essential needs while the rich sees loans as leverage for their business or to buy assets.

You're right that it's rare to see rich people working to get paid. They usually diversify their income through different financial instruments. 

However, its unfair, and even somewhat dismissive to say that poor people are risk averse, afraid of debt, or don't value asset. Poor people simply have fewer choices, and they are making decision based on their financial situation.
Trust me. If you have $10M, you have far more opportunities to take risks than if you only had $10k and still needed that money to cover basic living expenses.

The difference between the rich and the poor isn't always about mindset or knowledge. It also comes down to each person's resources and starting point.

Having more resources is not the only reason why rich stay rich, while the poor, stay poor. You will always need to have the right mindset, have enough financial knowledge, and a good financial habits. For example, there are two people with the same amoung of money can end up in a completely different financial status depending on how they will manage their finances, how they prioritize to have more assets, control their spending, and make the right financial decisions.

Another thing is that, when it comes to people with limited resources, most of the time what they focus more on is to try to look rich by spending on unnecessary things that they think of giving them a higher social status than the others, such as expensive smartphones, clothes, cars, and other expensive things. While the rich often do the opposite. They always focus more on acquiring assets and investments than trying to loock rich.

With enough resources doesn't make you rich in the long run. Because even someone who suddenly become rich can eventually lose that wealth without proper financial knowledge and discipline. Being rich means that you need to be able to manage and requires to have the right mindset of responsible spending, and to focus more on building a sustainable assets instead of enjoying the money until it lasts.

[Obulis]

The rich man has information at his finger tips especially investment. The rich man has knowledge because he has acquired financial knowledge and a certificate to back it up but the poor man is always chasing degrees here and there. Here, education is not the problem but financial and investment knowledge are. Take Bitcoin for example,there are those who have made a whole lot of money from it. Those who made money from Bitcoin are those who have the knowledge of it. The poor man chases degree without financial knowledge,am not saying chasing degrees is a bad thing but rather am saying balance it with financial knowledge. What is your take

In as much as knowledge is a major prerequisite to leave poverty and become rich, and knowledge gap a serious difference between the rich and the poor, you can not undermine some factors like, privileges and environment. With all the knowledge, without capital, that person is almost the same as those without the knowledge and even with this knowledge, environment where you find yourself will seriously affect the outcome of your efforts.
So far, getting a degree has nothing to with these matter because people from rich family are the ones attending world class universities, what they get there is still a degree!

[Mate2237]

When we talk about financial knowledge and a lot to do with financial management, someone that's poor don't have such knowledge because they cannot manage what they don't really have. Another thing that widens the gap between the rich and the poor is the networking that they have, this gives them opportunities and also more ideas for them to increase their source of income. For someone that's poor it is going to take more than just hard work to get to that point. But there are also rich people that don't really have financial knowledge, they are just rich because they got an opportunity that others didn't.


A lot of Rich people are just privileged or opportuned to be wealthy, when it comes to comparing their financial knowledge with some people that are poor it would always be clear that they know nothing.