Saturday, May 3, 2008

What Does 90/10 Mean?

Some may wonder what does 90/10 mean? Some of you who may have a slight idea may think I mean 80/20. Well 80/20 actually is connected to work and labor. I blog about money and finances. That is what 90/10 applies to. Here’s the idea: 10% of the people in the United States earn 90% of the United States’ money. The other 90% of people earn 10% of the United States’ money. The top 10% are usually business owners and/or investors which simply put are the rich people of the world. The other 90% of people either work for the rich business owners or they work for the investors when it comes to small business owners. Now remember this is a concept, not exact figures. Having said that it is also not a hard concept to grasp if you look at the facts of the world of money. According to Robert Kiyosaki’s book Rich Dad’s Guide To Investing the Wall Street Journalsaid in an article on September 13th, 1999: “..Nearly 90% of all shares were held by the wealthiest 10% of households. The bottom line: That top 10% held 73% of the country’s net worth in 1997, up from 68% in 1983.” Now for him to quote the Wall Street Journaland provide a specific date, I assume he’s being honest about this quote. What does this have to do with you? Let’s take a look at it.
Everyone is a part of the 90/10 club whether they acknowledge it or not. You also make the choice of which side of the club to be on even when you don’t know it. The great thing is that once you are aware of which side you are on, you can change which side you are on. How is this possible? Control. You can control your level of knowledge and the application of this knowledge. This is what I am doing. I am on the employee side ( according to Cashflow Quadrant). This also means I am part of the 90% who fight for their piece of the remaining 10%. With more and more jobs being shipped overseas I see now more than ever that I need to move on the upper 10% side. Once I’m there I will work to get to the top 1%. A lot of people are ignorant but once you know how to change sides your ignorance can turn to stupidity depending on how you look at it. Like my grandmother says, “To each his own.” I don’t want to fight for 10% of the money. I think it’s much easier to get a piece of 90%, don’t you?
Now that you know what 90/10 is all about you can make a choice. Hopefully you make the choice that is right for you. If that choice is to be part of the 10% who earn 90% then welcome. I am your brother in the journey to financial literacy and freedom. I welcome you to share in my journey. My question to you is: What side of 90/10 do you want to be on? Stay tuned for more blogs. In the meantime, be blessed and grow rich.

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