The Rich get Richer and the Poor…?

The saying “The rich get richer and the poor get poorer” is well known by most. However, is the adage as accurate as it is publically promoted to be? Or is it more emotionally instigated? Does prejudice or jealousy contribute to its popularity? Do the rich get richer BECAUSE they are rich? Do the poor get poorer simply because they BEGIN poor? The answer to those questions can vary significantly depending on where you are in the world. In this article I’d like to attempt a discussion from the perspective of the free world or Capitalistic economy, specifically the lease owner operator or trucking industry.

As an accountant to operators for several decades now, I have the honor of seeing both success and failure in many different people. Analyzing the traits of successful people compared to poor people is not an exact science. In other words, not every rich person gets richer and certainly not every poor person becomes poorer. There are, however, characteristics that nearly guarantee financial gain and those characteristics have little or nothing to do with initial wealth.

Individuals get richer because they first grow in wisdom. Others become poor because they embrace foolish habits and principles. It’s certainly not an easy concept to accept, because if someone views themselves as poor they must acknowledge that somewhere they are acting foolishly, which would generally be considered an insult. Pride blinds a person from wisdom whereas humility helps focus on success.

People climb up and down the rich/poor ladder all the time because they consistently perform wisely or persist in foolish activity while having the freedom to switch between either, at any time, for any reason. I have watched as some build great wealth acting very wise and prudently, then for various reasons embrace foolish behavior or principles and loose almost everything.

Those who climb up and stay, or even continue climbing embrace wise values, rarely letting them out of their sight. It is a discipline that permeates almost every thought. Those who are fools hold to behavior that eventually sucks away their resources. They don’t call the lottery “a fool’s tax” for nothing.

In my second book “choosing a trucking company”, I have several stories and examples where individuals are victimized by carriers. I also have stories where carriers produce extremely ethical responses. Operators must accept at least some responsibility for “choosing a bad Carrier”… but of course, very few actually do.

The problem with these types of generalities is that people always come up with a story that appears to prove the evidence wrong and therefore “justifies” their foolish behavior. Well… good luck with their conclusions. In my opinion, pride has blinded them. There’s not much anyone can do for them. We just watch in agony as they slip into crisis and poverty while those who humble themselves find success.

In my experience, the only direct factor that causes the rich to become richer is compound interest or “having your money make more money”. I am a fan of Dave Ramsey, who explains it this way. When a child peddles up a hill there is a lot of effort needed. However, once they reach the top and start to coast down there is little to no effort required. That point where you reach the top of the hill is when your money starts making money for you and your personal effort is not as critical to your success or gain. However, the rich person must still live within their means (or income). I have also seen some very wealthy people blow through money like it was water flowing over Niagara Falls.

So, if you want to get wealthy, seek wisdom and understanding about your industry. Choose a proper, ethical Carrier to work for. Do your research. Embrace wise financial, business and life choices first…wealth will eventually come to those who do.

Robert D Scheper operates an accounting and consulting firm in Steinbach, Manitoba. He has a Master’s Degree in Business Administration and is the author of the Book Series “Making Your Miles Count” (taxes, taxes, taxes in 2007) and (Choosing a Trucking Company 2015).

You can find him and his books at www.makingyourmilescount.com or 1-877-987-9787. You can also e-mail him at robert@thrconsulting.ca.