The statement that 2% of the people control 80% of the wealth is quite dishearte

Let's take a look at the data released by China Merchants Bank. As of now, they have approximately 150 million users, among which only 2% have assets exceeding 500,000 yuan. However, the total asset amount of these 2% of users is close to 9 trillion yuan, accounting for as much as 80% of the total assets of all users. In other words, 2% of the people control 80% of the wealth! Is this statement heart-wrenching?

I reflected on it, and in fact, the main reasons for the wealth gap stem from three aspects: the trap of consumerism, cognitive biases in investment, and the shackles brought about by class solidification!

Firstly, the trap of consumerism

Have you ever thought about it? Even during the pandemic when everyone's income generally decreased, some people hesitate to order a 20 yuan takeout meal, while others spend tens of thousands of yuan per meal casually. Why is there such a big gap?

In fact, wealth disparity is a very sensitive topic. No one wants to be poor, and everyone hopes to live a good life. But in reality, there are far more poor people than rich ones.

The poor already have little money, but capital still digs a consumerist trap for them to fall into. Never ignore the existence of capital; they will use big data and psychological warfare, along with powerful marketing strategies, to tempt you into premature consumption. As a result, the debt increases, and it becomes increasingly difficult for the poor to turn things around.

Advertisement

Secondly, the bias caused by investment philosophy

Apart from the consumer trap, a more important reason for wealth disparity is their different investment philosophies. For example, 20 years ago, you came to Shenzhen to work hard with your fellow villagers, both of you joined a large company, and your salaries were similar. You spent your monthly salary on eating, drinking, and entertainment, leaving almost nothing after deducting rent. However, your colleague chose to save a portion of the salary and use some of it to improve their financial management skills. As a result, five years ago, your colleague bought a house in Shenzhen, while the money you have can only make a down payment in your hometown.

Investment is against human nature. Everything that looks good in the short term will cost you more in the long run, and everything that seems painful in the short term will benefit you in the long term.

Thirdly, the solidification of class thinkingIn fact, the trap of consumerism and investment philosophy can be changed through short-term learning and overcoming, but to break free from the shackles of class thinking, it requires long-term deliberate practice to change!

First, you need to face the wealth gap and change your mindset. There is a very interesting story. Once upon a time, a poor man complained to God, saying why he works so hard every day, sweating profusely, but he is still poor, while the rich sit in the office drinking tea, chatting, and enjoying air conditioning, easily making millions a year. Isn't this too unfair!

At that moment, God said, what do you want? The poor man said, let the rich work with me and see who will become rich in the end?

So God put the poor man and the rich man on the same starting line, and they both worked together to move bricks on the construction site. In the first few days, both the poor and the rich were moving bricks, and the money they earned was the same. When it was time to get paid, the poor man spent all his money, while the rich man saved it, hired a few people to move bricks for him, and became a contractor. So three years passed, the poor man was still moving bricks on the construction site, and the rich man had become a real estate tycoon.

Therefore, the key to wealth and poverty comes from your concept, not the wealth itself. Even if you have a lot of money, if you don't have the right investment concept, you will eventually squander it all.

In summary, the biggest consumption trap for ordinary people is not eating, drinking, and playing, but spending a lifetime of hard work to buy a house with no appreciation potential, and even facing a price drop. The most typical behavior is to earn money in big cities and then buy a house in their hometown or build a villa in the countryside.

You may say, there are so many people building villas in the countryside, why can't I? Get rid of it, have you figured it out? The rich build villas with money earned from investment appreciation, while you are building a house with your life's efforts, and in the end, you have no liquid capital, missing many opportunities to make money.

So for ordinary people, the easiest wealth opportunity you can grasp is to buy a house with a loan in a core city, because such cities have strong population attraction, strong industries, and the house you buy will be willing to be taken over at a higher price in the future. The purpose of doing this is to lock in the future wealth increase of the city in advance.

Remember, the core price of a house is not steel and cement, but the surrounding industries, educational resources, and urban purchasing power. Don't save all your money in the bank, learn to use leverage to drive wealth, to beat inflation, and be the master of money.A change in mindset can pave the way; breaking the rigid thinking of social stratification starts now. Click below to subscribe to Mr. Jiang's "30 City Real Estate Transaction Strategies" and learn together.