Written by On this Wisdom Wednesday, we discuss the proverb: “The rich rule over the poor and the borrow is slave to the lender”. If you did not know, I am a huge fan of Proverbs. They have a richness in story and application that is hard to replicate. Not to mention the conversations and discussions they help foster.
What wisdom means to me
Wisdom is one of my core values. Solomon’s story shows the power of wisdom. Wisdom is akin to the ability to wish for more wishes. You aren’t focused on any one thing when you seek wisdom. Wisdom is the ability to take the knowledge and understanding you have gained to put the best plan together. Knowledge is knowing how to make money, understanding helps you keep your money, and wisdom helps you multiply your money.
How the rich rule over the poor?
Regardless of whether you are talking about modern or ancient times, the rich have power and influence. In America, it is well known Congress has a disproportionate number of millionaires versus the American population. Whether you believe they became millionaires because of elected office or not, the rich are still ruling. However, this truth does not account for all the wealthy members of Congress. There are plenty of members who were already rich and ran for office. If you account for the funding required to run a campaign, you will notice the rich spend millions of their own money on their campaign.
Even the presidential campaigns require hundreds of millions, if not billions of dollars. And that is whether you win or lose. You can see how unlikely it is for a poor person to be elected. Nevertheless, if they were, the rich rule over them as they now owe political favors to their campaign donors.
The power of businesses
Another example of how the rich rule over the poor is our corporations. Corporations have the ability to lobby for causes. Lobbying isn’t inherently good or bad. Lobbying is the idea that Congress isn’t an expert in everything they govern, so experts come in and share their expertise. They share the nuances of the industry and the potential negative impact of certain laws. The problems arises when you look at what lobbying as become today. Corporations send lobbyists to pass and kill legislation that benefits their company. Even if it is at the expense of the people.
On a micro level, corporations decide your salary, aspects of your healthcare, paid time off, when you’ll get promoted and when your job is terminated. Even in the post-COVID lockdown world, corporations are deciding whether people can work remotely. Sure, we can protest and plan strikes, but ultimately, it is the rich who must take action. Corporations have a significant amount of influence in our daily lives on both a macro and micro basis.
Who controls the education system?
Then there is the fact that our education system is designed to create lifelong employees. We aren’t introduced to wealth building, entrepreneurship, and personal finance in school. As a result, most people are unaware of the process of building financial freedom. Instead, we have been convinced the only way to purchase our freedom is to become a lifelong employee enslaved to the system. You can receive hundreds of thousands of dollars to go to college, but can’t get a portion of that total to start a business. Then, if your only investments are in your 401k or IRA, you can’t access your money before 59 1/2 (without paying a penalty).
Change the game
Instead of working in the system for 50 years, what if you could invest your money in assets you can access right away? Then you could purchase your freedom much earlier. Even better, you could become one of the rich and advocate for the benefit of everyone. In case it needs to be said; being rich or poor doesn’t inherently mean someone is good or bad. There are rich people who are generous and their are poor people who are greedy. There are poor people who are smart and their are rich people who are dumb. Financial success even isn’t the best barometer of these things, but it is a good measurement of someone’s money mindset.
The borrower has a master
The second line of the proverb is the borrower is slave to the lender. If you have a house with a mortgage, there are terms dictated by the bank. The bank tells you when your payment is due, how much insurance you need to have, and how much it cost to borrower their money. If you do not follow the rules set by the bank, they can come and take your house.
The same holds true if you are renting. You can be required to have rental insurance and be told to pay your first and last month’s rent as a security deposit. They can even tell you whether you are allowed to have own a pet.
Borrower is slave to the lender
There was a time when banks could call your loan due in 30 days. Even if you originally signed a 10-year repayment plan. As a result, people rarely wanted to be on the lender’s bad side. Imagine upsetting your lender and then calling your home and business loan due. You will find yourself out on the street without any means of making a living. Regardless of the situation, the goal is to achieve as much freedom as you can in the time you have. You want to achieve freedom both financially and mentally so you can have control over your life.
Become a lender
After you free yourself, your goal may be to free your family. Where you become the lender and dictate the terms to your loved ones. You may create a trust that requires your children to go to college or start a business to receive funding. I’ve had clients that required their kids to join the military in order to receive their inheritance. By you being the lender, you can ensure your values are passed onto the next generation.
Final thoughts
The rich rule over the poor through their control of the system. The rich have access to the politicians who pass the laws. They even run many of the companies we spend half of our lives working within. We also learned the borrower must maintain good standing with the lender or suffer the consequences. As a result, the borrower is enslaved to the rules of the lender. Ideally, we can all move into the lender status so we can regain control over our lives and help others do the same.