The 90/10 rule of money

The first time I heard the words The 90/10 rule of money is from the book that I am currently reading which is "Why we want you to be rich" by Donald Trump and Robert Kiyosaki. For those of you who have not read this book I strongly suggest that you do, since that this book explains a lot about the world events and the concept of investment that might be useful to you later in life.

From what I learned in this book is that the 90 percent of the nation asset is being owned by only 10 percent of the nation wealthiest billionaires. In other words, only 10 percent of a nation population owned the 90 percent wealth of a nation. Even though there is no empirical data or no specific studies dedicated to this principle, however this principle do make sense in lots of way.

This are the list of Malaysian top 10 wealthiest men who owned approximately $51,800 million worth of asset. So basically, the 90/10 rule of money does apply in Malaysia or in any other countries in this world. Only a selected few of the riches who owned the rest of the nation wealth, while the other 90 percent consist of the average government servants, public sector workers, small business owners and others.

WHERE ARE WE IN THIS RATIO? Well if you ask me, my answer will be we are definitely the 90 percent of the population who work hard and yet still does not owned the highest percentage of the nation wealth. You see, in this book, it is clearly stated that there is arising problems of the shrinking middle class. Soon, there will only be 2 classes exist in this world, the riches and the poor. The riches represent the 10 percent of the population while the poor represents 90 percent of the population. See the humongous difference? If we are not careful enough, this ratio will turn into 95/5 where only 5 percent of the population owned the other 95 percent of the nation wealth. In a simplified words the poor will increase to 95 percent while the riches become only 5 percent of a nation population.

That is why we need to be rich. If there are more of us who become rich, the ratio of the riches in the country will increase and the ratio of those who are poor will be reduce. Of course, it is easier said then done. The first step that you can take is to educate yourself with financial education as much as possible.

"Do not neglect your life skills, which should include a healthy dose of financial education. Your financial intelligence can have a profound impact on your quality of life,no matter what your interest are", Donald Trump.

Finally, always be prepared in order to cope with the changing world. As Louis Pasteur said, "Chance favors the prepared mind."