Wealth Inequality Is A Feature Of The System NOT a Bug

Hey Jesscitizens

My blog here is me trying to figure out how to not be broke at the end of the month, the system we live in today has widespread income inequality. It may change in the degree of severity depending on where in the world you live, but it's undoubtedly there. As a South African, is one of the first generations to be allowed into a university where I could choose what I wanted to study. Then go on to try and find work in that field. I know first hand the struggle it takes to start at zero but have an education.

We're often told knowledge is power, education is the key to breaking the poverty cycle, but from my experience education can only take you so far. I will admit I was not the best student I wasn't smashing out the lights; I did it because it was what I needed to do to try and get my foot in the door with a job that would allow me to earn skills that the market values.

I am sure one of the lucky ones, the majority of South Africans either don't finish school, don't go to university, don't finish university or worse, finish and then still not get work in their field. Education is NOT going to save most of us, that's the truth, and for those that it does, it's still a long road of hard work to try and get out of poverty.

Return on investment

All this effort, all this education, all this labour for only one source of income, for many that's the life we chose, and we stick to it till death. Having one source of income means you have a massive single point of failure if you get let go, if you are sick or hurt, you can't work, you can't earn.

Since most of us focus our waking ours on earning money, we never look at how to use what we've earned, and we give it away, we essentially place holders for the money. We bust our asses, get the money then hand it over to Apple for the latest iPhone or to VW for your car payments or to the bank or store or wherever your money goes that doesn't sit with you.

Most peoples ROI on their waking hours of work is shockingly shit as wages have been flat and whats worse is many cannot use their income to generate wealth. As someone who has actively tried to take what little they earn and turn it into something bigger, I can tell you its a second full-time job.

I spend hours reading, researching and trying to find opportunities that fit what capital I have to allocate to passive income and asset. The system now not only requires you to work to generate a living but also be an expert investor to protect what you've earned.

A system where overconsumption is encouraged and savers are losers; you can see why the rich keep getting richer, and the rest can't seem to catch a break.

Do as the rich do, on a smaller scale

If you want to start protecting what you earn, you cannot fight the system, all you can do is copy the techniques of the rich. This means get out of cash and into an asset, if you hold a lot of cash, try to find investment vehicles for it, or you will lose that capital over time, faster and faster.

So how do you go about copying the rich?

Pay yourself first

The first thing you need to do is pay your damn self; I never understood why people would pay their creditors and others before they pay themselves. When you work or sell something to get an income, you need first to decide how much you are going to keep for yourself; the point is the more you keep, the more you can put to use.

As I said before stop paying Apple for the latest gadget, pay yourself for use on your next investment. Why use Apple products when you can own Apple stock?

Get out of debt

The second thing you need to do is get out of debt; I don't care what people tell you about credit scores and all that bullshit. The fact is if you have assets, you will get that loan. You think they check Elon Musks' credit score or do they look at the value of his assets when they grant him a loan?

So get out of debt and start investing, the bigger your asset allocation, the more attractive you are to institutions to get loans at more favourable rates in the future.

Spend less than you make

Sad that I need to mention this but stop using credit and stop overspending, give yourself a damn budget and stick to it. I am more aggressive in this regard. I keep just enough money to cover my bills, and I don't see my investments as assets as that money goes out, I see it as an expense.

Even when I still own the asset and liquidate it at any time, it doesn't matter. I have no money; I am broke, so I have to go out and get more; it keeps me hungry and motivated.

Get out of cash

As I mentioned, savers are losers; if you are going to save in cash, there was a time when the US dollar still has you favourable rates or holding bonds did, but at this point, the inflation is so high there is no point. Holding government bonds to maturity these days will only see you end in the negative.

The game has changed, and you need to look at deflationary assets, Gold, Bitcoin, real estate in certain parts of the world, dividend-paying stocks, and dollar cost average your savings into assets that provide you with protection or a return that beats even the most aggressive inflation predictions.

Have a long time frame

If you want to protect your wealth and build something for the future you need to get into assets that leverage the power of time, in a world with artificially low-interest rates time has no value and if it goes negative, that means the time has a negative value.

So what you want to get into is something with provable scarcity that can increase in value with time. As more people want it, as more people focus their labour on acquiring the assets you own, so your wealth increases in purchasing power.

Once you get on the right side of compound interest, time is your friend.

Delay gratification

This is one thing people fall for all the time, because of fiat money, since its losing value all the time we spend it on things that we think bring us value instantly. We buy all sorts of goods and services, and while that does great work for business and the economy, it's not great for you.

Sometimes you need to delay gratification, HODL through the tough times and wait for the good times to take profit. If you can set yourself up with a healthy portfolio and cash flow, it makes it a whole lot easier, but this comes with time, taking loses and learning.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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