The difference between the rich and the poor is financial knowledge

[Webutxo]

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.

This your opinion is somehow. The poor people are poor people because the government does not provide an enabling environment for the poor people. If you check a country and they have large numbers of poor people, don't think that those people are lazy and refused to be rich, it's the government that makes them that way, they are what they are today simply because the government has refused to provide the opportunity for them to make money.

Why do you think that places where poor people are considered before the rich people when it comes to tax cut, loan, grants and many opportunities, it's because they have mandated to make sure that the number of people that are poor should reduce and the wealthy people to give back to the society through the tax. That's how they are able to make sure that more people to rich and have a sane society.

[Victorybit1]

There is a lot financial knowledge can do especially when it comes to building wealth but a common misconception is that those that are rich have more financial knowledge that those that are poor, that's not actually correct. There are lots of rich people that got their wealth from inheritance and just an opportunity, not because they have much financial knowledge. The reason why some people that are poor are still unable to apply the knowledge that they have is because they don't have an opportunity yet, having money isn't what makes a person rich but having ideas to stay rich is what matters.

[WillyAp]

You need a lot more than financial knowledge to make it.
You need to work on yourself, your reputation, your surroundings.

And you need to know where to get access to seed money at least.

 

[MainIbem]

...

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.

It is true that rich people have more capital to seize good opportunities, it's a big advantage to them over the poor but i want to let you know that having less capital doesn't stop a poor person from being rich. I'll give you a perfect instance with Bitcoin investment, and why it's mostly about mindset and knowledge. While rich people have more capital to buy much and hold, the poor can still DCA which is buying gradually but consistently and hold too but some poor people don't have patience cause their mindset is set on getting rich quick which is why they mostly fail. However many rich people still DCA even while having the capital to buy much at ones, now have you seen that it's mostly about mindset and knowledge and less resources isn't a barrier?

[abhiseshakana]

...

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.

It is true that rich people have more capital to seize good opportunities, it's a big advantage to them over the poor but i want to let you know that having less capital doesn't stop a poor person from being rich. I'll give you a perfect instance with Bitcoin investment, and why it's mostly about mindset and knowledge. While rich people have more capital to buy much and hold, the poor can still DCA which is buying gradually but consistently and hold too but some poor people don't have patience cause their mindset is set on getting rich quick which is why they mostly fail. However many rich people still DCA even while having the capital to buy much at ones, now have you seen that it's mostly about mindset and knowledge and less resources isn't a barrier?

I think what make poor people difficult to escape from the grip of poverty, condition make them only think about how to get more money or at least survive until the end of the month, meanwhile to escape from poverty everybody need strategy based on their condition, what they need to do are change thir financial structure so they don't need to sell their time dor their survival. Many people do hard work and get significant income but all income only for consumption.

To be rich beside solving income problem, we need to have outcome for wealth building problem, poor people rarely think about income progression. I know that not everyone has enough financial slack to implement a longterm strategy , so i think poor people can try to create slack, which i think they can start with managing bad debt, reducing spending leakage, ensuring that minimal basic needs are met. If poor people can manage it, they will have a calm state of mind for the next stage which is building an emergency fund.

[lionheart78]

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

It is not only the financial knowledge that separates or make the difference between the rich and the poor.  There is also these connections and opportunities.  Rich people have good connections; they have a network of people who have influence or are capable of doing great things.  Aside from that, with these connections, rich people are able to amass lots of good opportunities that is not available to poor people.

This is also the reason why rich people become richer and poor people stays people unless the poor people have given a break and is able to connect with the circle of capable people.

[CryptoBuds]

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.

It is true that rich people have more capital to seize good opportunities, it's a big advantage to them over the poor but i want to let you know that having less capital doesn't stop a poor person from being rich. I'll give you a perfect instance with Bitcoin investment, and why it's mostly about mindset and knowledge. While rich people have more capital to buy much and hold, the poor can still DCA which is buying gradually but consistently and hold too but some poor people don't have patience cause their mindset is set on getting rich quick which is why they mostly fail. However many rich people still DCA even while having the capital to buy much at ones, now have you seen that it's mostly about mindset and knowledge and less resources isn't a barrier?

Yes,  limited resources and a weaker starting point don't prevent the poor from becoming rich. I'm not denying it, but you have to admit that it makes the path to wealth much more difficult.

How can you build wealth at the same pace as someone rich if you are only DCA $100/month while they are DCA $10k/month?

That is why Im not denying the role of mindset and knowledge, but clearly, the difference between the rich and the poor isnt just about those 2 thing. Resource and where you start also matter.

[WillyAp]

It is true that rich people have more capital to seize good opportunities, it's a big advantage to them over the poor

But many lack imagination, so the ideas of the so called poor are still needed.
VC throw money at thing where the chances to make it bis are slim at best.

[Perfectbaby]

Financial knowledge is referred to knowing how money works, understanding how savings and investment works, and also knowing how to make monetary decisions in terms of budgeting.
When an individual has financial knowledge, then he's financial freedom and stability becomes easier to achieve even when there are risks involved.
Because the common man is afraid of taking risk and loosing it all, he feels it's better not to think outside the box by keeping what he has, which wouldn't bring in more cash flow. The common man can only build wealth when he has undergone proper mentorship that concerns finance to become financially literate.

The ability of an individual escaping poverty is when he knows all that involved to gain wealth, or how to use what he has at the moment to bring in more income.
When the common man isn't ready to take risk,.learn and upgrade, then it's a difficult task trying to help him gain financial knowledge.

The rich takes this risk because they believe everything has a prize, and if it means they lose in one end, it doesn't necessarily stops them for trying over again just to achieve their aim, some times the rich are classified as risk takers.

[tiCeR]

It is true that rich people have more capital to seize good opportunities, it's a big advantage to them over the poor

But many lack imagination, so the ideas of the so called poor are still needed.
VC throw money at thing where the chances to make it bis are slim at best.

That's right but often times they only need to get it right every once in a while. There calculation is not to get it right 100% of the time, but to get it right once when it is worth the most. And I think there are quite a lot of good VCs these days. All the tools they have available, all the knowledge that is out there. They can afford to go with emerging trends, bet on ten companies at once and are fine if one hits.

Having capital available that can be invested anytime is definitely an advantage. They can usually seize opportunities regardless of what trend the market is in. Downtrend, uptrend, doesn't matter to them.

I am not sure though whether I agree with OP as he described it. You can have a ton of financial knowledge and yet be at a huge disadvantage. Now I agree that acquired knowledge is probably in close relation to financial success, but not necessarily. People can acquire knowledge for free on the Internet, but if they don't have any capital to play around with or make substantial investments, financial knowledge is obviously only one key to success.

[alastantiger]

Why do you think that places where poor people are considered before the rich people when it comes to tax cut, loan, grants and many opportunities, it's because they have mandated to make sure that the number of people that are poor should reduce and the wealthy people to give back to the society through the tax. That's how they are able to make sure that more people to rich and have a sane society.

The country that are doing this are not plenty that is why it is like there are not many of them doing it but it is a nice strategy to have the rich pay for the utilities that the poor use through taxes because the poor do not have money to pay. Taxes should be done in a way that the rich pay more than the poor as this will help bring balance into the society. The rich already have enough money so it should not be a problem for them to pay for things and with the help of the government adding their own money less pressure will be on the poor to pay taxes.

[Abdulzuruku01]

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.

Indeed financial knowledge isn't the difference, it's the capital to carry out the knowledge. Many average class and  poor people certainly have the ideas of good investments, but has no funds or capital to start up their business ideas. while rich people already with the their funds to carry out any of the ideas that come to their way. 

One of the major problems of poor people nowadays is that they see a degree as their way out of poverty, thinking it's financial breakthrough  for them to get good life. In my opinion financial knowledge is one of the best ideas but if one have capital to start up the idea is much better. In the absence of capital to start up business,  all you need to do at early stages is to acquire skills and become perfect with the skills you acquire and earn little for you to start up any of business ideas you have.

[Youngrebel]

Indeed financial knowledge isn't the difference, it's the capital to carry out the knowledge. Many average class and  poor people certainly have the ideas of good investments, but has no funds or capital to start up their business ideas. while rich people already with the their funds to carry out any of the ideas that come to their way. 

One of the major problems of poor people nowadays is that they see a degree as their way out of poverty, thinking it's financial breakthrough  for them to get good life. In my opinion financial knowledge is one of the best ideas but if one have capital to start up the idea is much better. In the absence of capital to start up business,  all you need to do at early stages is to acquire skills and become perfect with the skills you acquire and earn little for you to start up any of business ideas you have.

Education can actually open doors and improve a person’s opportunities, but it does not guarantee financial success mostly in our today’s world where corruption has taken over education is hardly the key to financial success and thats why in a case where by the capital is limited, so many of us just go ahead to learn a valuable skill and use that skill to generate income and it’s one of the best starting point because u can start small, build, save, and gradually create the capital needed to pursue bigger things.

[Mpamaegbu]

What stops the poor from actually getting to a financially stable point is knowledge, there are some informations that those that are poor can't have access to because they don't really have the cycle of friends that would introduce them to all of that.

I don't believe it's lack of that type of "insider" information as you alluded there. From where I stand, I know it's not a lack of information or knowledge that keeps one in a state of poverty but a fear of acting on that information.

Anyone with a poor mindset/mentality will always be scared of taking risk. We can say such fear arises from not wanting to risk and lose the little one has. I'm a victim of this. So, even when that insider information comes, someone with a poor mindset will still doubt it. A few poor people that will act on it, will risk little. The ROI won't be that significant like when a rich person gets hold of such information and acts on it.

The poor man's greatest undoing isn't lack of knowledge or information but FEAR.

[batang_bitcoin]

Education can actually open doors and improve a person’s opportunities, but it does not guarantee financial success mostly in our today’s world where corruption has taken over education is hardly the key to financial success and thats why in a case where by the capital is limited, so many of us just go ahead to learn a valuable skill and use that skill to generate income and it’s one of the best starting point because u can start small, build, save, and gradually create the capital needed to pursue bigger things.

That is true that it doesn't guarantee financial success but as someone who doesn't have any person to back our lives, it's the best way to start our lives with better chances. Although it's still different with someone who has mentors and born with golden spoon. Those have the first advantage but someone who came from rugs to riches, they have a way to be the same as the other wealthy people and that's by having financial knowledge and in many ways, we can have it. Through experiences, network and learning it by ourselves.

[Woodie]

But you know the thing about these two? The Rich man is the person that isn't afraid of taking up risk while the poor man is that person who is always playing it safe and doesn't want any risky decisions and that

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.

Totally agree, financial knowledge alone can never be that underlying factor especially that both of these guys can easily get it! These days to make money you need money and that's just how the system works..and if we brought that into the bitcoin picture..to make money as a holder you need the capital to make that extra money as a hodler and that won't change.

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.

Just thinking about it, if capital the that everyone uses as leverage..is it possible to make it ??