Why Do the Rich Get Richer?

Why Do the Rich Get Richer?

Why Do the Rich Get Richer?

It’s a question that has been pondered upon since time immemorial, but we end up settling with reasons that suit us. Most of it is the disadvantages that surround us and the advantages that the rich have, so we continue to do what we do. An English proverb best presents our case,

“Grass is greener on the other side”.

As a result, we are never really interested and invested in finding out all the possible reasons, and thus remain to live a life full of complaints, struggles, and procrastination. This leads to us continuing to lead the life we are living, rather than the life we always dreamt of!


Now, let's understand why it happens and what can be done on our end to change the situation. A good and practical concept was proposed by Mr. Robert Kiyosaki, an American businessman and author, called ESBI.
ESBI is a powerful tool that illustrates how the nature of one's income can have a profound impact on one's ability to accumulate wealth and achieve financial independence.
E Stands for Employee


One who exchanges his time and effort for income
B Stands for Big Business


These are the people who employ other people to work for them and generate an income for themselves
S Stands for Self Employed


One who works for himself to earn his living but can he take one month vacation and business still runs
I stands for Investor


These are the people who put their money to work for them. These are people who chill on their yacht and enjoy mango juice !!!!

Characteristics of People on these Quadrants

  • E
    These are the people who are dependent on jobs for their livelihood. These are mostly employees in a company or an organization. They devote their skills and work to their Bosses. Mostly live on Paycheck to Paycheck.
  • S
    These are those people who are self-employed and work for themselves. They are their own Bosses but still have the constraint of working hours.
  • B
    These are the business owners. These are the one who employee other people who give their time and skill to earn themselves a paycheck, while the big business owners enjoy profit
  • I
    These are investors. They make their money work for themselves. These are the people in the world with the highest level of Financial Security.

If we divide the ESBI into left and right segments on the basis of Population and Wealth, this is what we get:-



Population: 97% Population: 3%
Wealth      : 3% Wealth      : 97%

From the above figures, isn’t it strange that most of the world’s population is owned by just 3% of the population? What could be the reason behind it? The reason is:-


Let's try to understand the Mindset


They work for security. These are the ones who are living on paycheck to paycheck.


These are the ones who love freedom and want to live their life on their own terms.


They put in 8-10 hours a day to earn some money to live their livelihood


These are people whose main motive is to accumulate wealth for themselves.

Instant Gratification

These are the ones who want instant gratification. They just think about the next two months.

Delayed Gratification

These are people who wait for the things in a longer-term. They see things in the horizon of the next 15 – 20 Years.


These are the ones who trade their time for money.


These are the ones who employ people for themselves and increase their man-hours.


These are the ones who are best in their fields. They know HOW to do things.


These are the ones who know WHY the things are to be done. They have a clear VISION of the next 15 – 20 years. They employ people who know HOW the things are to be done.

It is very difficult to shift from one quadrant to another, as it requires a great shift in Core Values embedded in us since childhood.

One thought on “Why Do the Rich Get Richer?”

  1. Hardeep S. G. says:

    Wao! Thats an amazing elaboration of cash flow. Though , I must admit it’s requisite to understand this concept and must take a leaf out of it for a wealthy future, yet I also believe that without right guidance and support its quite difficult to move ahead. I guess 911 has some plan to help others to achieve.

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