Some people will never be rich, and no, it’s not about where you grew up, who your parents are, your gender, or the color of your skin. The path to wealth is a complex interplay of various factors, and understanding these can make the difference between a life of financial struggle and one of abundance. In this article, we’ll delve into the fundamental reasons why most people will never be rich and explore what it truly takes to break free from the constraints of mediocrity. Welcome to a journey of self-discovery and enlightenment that could transform your financial future.
The Top 20% Rule: Defining Wealth
Wealth, in its simplest form, is the result of access to resources, opportunities, and the ability to leverage these advantages in a way that improves one’s standard of living. But defining who is considered “rich” isn’t as straightforward as merely looking at someone’s bank balance. It’s more about context—where you live, who you’re surrounded by, and how your lifestyle compares to the majority of the population. This is where the concept of the “Top 20% rule” comes into play.
At the core of this idea is the notion that wealth is relative. When we talk about being rich, we are essentially referring to someone being in the top 20% of their population in terms of quality of life and living standards. This is a key distinction to make—rich doesn’t necessarily mean having millions of dollars or living in a mansion; it means that compared to 80% of the people around you, your standard of living is superior. Your income, access to quality healthcare, education, housing, and even your ability to travel are better than the majority of people in your immediate environment.
The concept becomes even clearer when we zoom out and consider a global context. What constitutes a wealthy lifestyle in a highly developed nation may seem relatively modest in comparison to what we consider “average” in a developing country. A person living in the United States, with a comfortable middle-class lifestyle, might appear affluent in parts of Africa or Asia, where basic necessities are a daily struggle. Conversely, someone in the United States may feel like they are not rich if they compare themselves to the ultra-wealthy elite, such as Silicon Valley entrepreneurs or hedge fund managers.
The most crucial aspect of this rule is that wealth, from a practical perspective, is always comparative. We define ourselves as rich or poor based on the environment around us, not on any absolute measure. Being “rich” means you are in a position of privilege when compared to those around you, but this privilege is fluid and can shift depending on who you compare yourself to. This is why individuals from the middle class often don’t feel “rich” despite having a comfortable standard of living—because they measure their status against the wealthiest members of society.
In essence, the top 20% rule emphasizes that wealth isn’t about having unlimited resources—it’s about being in the top portion of the population in terms of living standards. And since society functions in such a way that only a small portion of people can occupy this space, it sets the stage for a financial hierarchy that leaves the vast majority of people somewhere below that line, in the middle or lower classes. For those aspiring to break into this top 20%, it becomes a game of improving your position relative to others, making smarter choices, and finding opportunities that elevate your living standards compared to the majority.
The Illusion of Equality: Why Not Everyone Can Be Rich
Understanding why most people will never be rich requires a deeper look at the structural forces that define wealth distribution. The primary factor is the inherent scarcity of wealth—by definition, there cannot be infinite rich people. Wealth relies on contrast; there must be a top and a bottom for the concept of wealth to have any meaning. This leads to the harsh truth: if everyone could be rich, the concept of wealth would lose its significance.
Wealth in any given society is typically distributed in a way that mimics a bell curve, where a small percentage of the population holds the majority of the resources, and the rest of the population falls somewhere in between. The top 20% of earners in society represent those who enjoy better living conditions, financial security, and opportunities, while the bottom 20% are often mired in poverty and lack access to the same resources. Everyone in between, the middle class, experiences a variety of living standards, but none of them can be considered truly rich when compared to those in the top 20%.
This creates an essential paradox: for there to be a “wealthy” class, there must be a corresponding “poor” class. The wealth of a nation or community is, to some extent, limited by the amount of resources available. The number of people who can enjoy a lifestyle that is significantly better than the majority is naturally restricted, otherwise, the notion of being “rich” would cease to exist. If everyone could attain the same level of wealth, there would be no distinction to make between the rich and the poor.
Furthermore, this scarcity isn’t just a theoretical idea—it has practical implications. The wealth that exists in any given society is tied to the opportunities that are available to its citizens, and these opportunities are not evenly distributed. In more developed countries, for example, the rich tend to have better access to quality education, healthcare, and job opportunities that allow them to continue thriving. On the other hand, in developing nations, the wealth is often concentrated in the hands of a few, and systemic issues such as government corruption, lack of infrastructure, and limited access to education can make it nearly impossible for the majority to escape poverty.
Additionally, there are societal norms and expectations that act as a barrier to wealth creation. People often feel bound by the expectations of their family, friends, and community. In many cases, breaking free from these social structures—whether it’s moving to a new place for better opportunities or pursuing a career path that doesn’t align with conventional norms—requires immense courage and determination. Many people are simply not willing to take such risks because they fear the unknown or because they don’t want to be seen as defying the societal script.
The tragedy of this situation is that many people, by simply adhering to the norms of their environment, never realize their true potential. They don’t reach for opportunities that could elevate them beyond their current station, simply because they are not exposed to these possibilities or because they lack the ambition to pursue them. The contrast between the haves and have-nots becomes a self-fulfilling prophecy—those who remain within their comfort zones often never break out of the cycle of mediocrity.
Ultimately, the reason why not everyone can be rich is not only about the physical or tangible barriers to success but also about mindset. The societal structure, limited opportunities, and prevailing culture of complacency all play significant roles in limiting the upward mobility of the vast majority. For those who are able to rise above these constraints, it often requires both mental and physical endurance, along with the ability to spot opportunities and take risks when others hesitate. However, for the majority, the reality is that financial success remains out of reach—not because of a lack of potential, but because the system is structured in such a way that only a few can break free and truly thrive.
The Macro and Micro Scale: Opportunities and Sacrifices
We often hear that success is largely determined by access to opportunities. This is true, but the nature of these opportunities—whether global or local—determines the paths that people can take toward wealth. Understanding how these opportunities unfold on both macro and micro levels is crucial in explaining why most people remain stuck in the middle or lower classes.
Macro Scale: The Importance of Access to Resources
At the macro level, one of the most significant factors in wealth creation is access to resources. This includes not only physical resources like land and capital but also intangible assets such as education, social networks, and healthcare. In countries with well-established systems of governance, economic stability, and social mobility, individuals have a greater chance of achieving financial success. In these regions, access to education allows people to acquire specialized knowledge, while a robust infrastructure provides opportunities for economic advancement, whether through job markets or entrepreneurial ventures.
Consider a place like Switzerland, where the wealth gap is relatively small, and people enjoy high standards of living. The country has well-functioning institutions that provide the population with opportunities to succeed—from excellent healthcare to world-class education systems. In a place like this, individuals born into modest conditions still have access to opportunities that can propel them into higher income brackets. Whether they enter the workforce, pursue higher education, or start their own businesses, the chances of success are greater because the country offers an enabling environment for wealth creation.
Contrast this with countries that struggle with economic instability and poor infrastructure. In regions like sub-Saharan Africa or parts of South Asia, where corruption is rampant and basic services are often unreliable, the path to wealth is significantly more difficult. In these areas, the government’s failure to invest in public goods—such as healthcare, education, and infrastructure—limits the opportunities available to the average person. For example, in many low-income countries, children don’t have access to quality schooling, leaving them ill-equipped to compete in a global economy. Even those who do manage to get an education may struggle to find employment due to a lack of job opportunities or infrastructure.
The point here is simple: geography matters. Where you are born can influence your chances of success. In areas with economic prosperity and stability, there are more chances for upward mobility, whereas in regions with systemic issues and economic challenges, it becomes harder to escape poverty. It’s not just about your drive or ambition—it’s about the systems in place that either enable or hinder your success.
Micro Scale: The Role of Sacrifice and Mindset
While macro factors like geography and government systems certainly impact one’s chances of success, they are not the only considerations. On a micro scale, individual choices—especially the willingness to make sacrifices—play an even larger role in determining financial success. This is where personal responsibility comes into the picture. It’s not enough to simply be in a favorable environment; you must also be willing to do what is required to make the most of that environment.
Success at the individual level comes down to discipline, focus, and a willingness to sacrifice. The process of becoming wealthy is not simply about being born into a favorable environment or having access to resources—it’s about consistently making the right choices over an extended period of time. Many people, when faced with the choice between short-term pleasure and long-term gain, choose the former. Whether it’s spending money on immediate luxuries, opting for convenience over hard work, or failing to learn new skills that could enhance their career, these small decisions add up over time.
The path to wealth often requires sacrifices that most people are not willing to make. For instance, moving away from your hometown to pursue better opportunities is a difficult choice for many. The familiar environment, family ties, and community connections are powerful forces that hold people back from venturing into the unknown. Yet, those who are willing to leave behind their roots in search of better prospects are often the ones who achieve great success. The sacrifice here is not just geographical—it’s emotional. It means stepping away from comfort and security and embracing uncertainty.
Another aspect of sacrifice comes down to time and effort. The most successful individuals are often those who are willing to put in years of hard work, even when results are not immediately visible. The ability to delay gratification, to keep pushing forward despite obstacles, is a key characteristic of wealthy individuals. Many people expect quick results, but the reality is that wealth-building is a long-term game. It’s about acquiring new skills, taking calculated risks, and consistently putting in effort over time, even when immediate rewards seem elusive.
The Power of Sacrifice: Why Most People Won’t Make the Leap
The leap from the middle class to the top 20% often requires a level of sacrifice and risk that most people are unwilling to make. The idea of sacrificing comfort, taking risks, and embracing uncertainty is not an easy sell. It’s difficult to leave behind a stable life, familiar surroundings, and security in exchange for a future that might not pay off. This hesitation to step into the unknown is one of the main reasons why most people never make the leap into true financial freedom.
The Need for Long-Term Vision
Sacrificing for wealth doesn’t just mean making one-time decisions—it requires an ongoing commitment to long-term goals. Those who are successful understand that wealth is built slowly over time. It’s about investing in yourself—whether through education, skill-building, or starting a business—and consistently working toward a future that may not bear fruit for years. The problem is that many people lack the long-term vision needed to make such sacrifices. They want immediate gratification, and they expect rewards in the short-term. This kind of mindset keeps them tethered to their current situation, making it harder for them to move up the financial ladder.
Long-term vision is necessary because wealth isn’t created overnight. Even those who start from a place of privilege often take years, if not decades, to build true wealth. In many cases, the first few years of an endeavor—whether it’s a career or a business—are marked by failure, frustration, and little to no reward. It takes resilience and the ability to delay gratification to push through these early years.
The Fear of Risk and Uncertainty
Along with long-term commitment, the path to wealth also demands that individuals take on risk. Many people prefer the safety of a steady job, even if it means sacrificing opportunities for growth. Risk-taking is necessary in entrepreneurship and investing, and it often involves the possibility of failure. Unfortunately, fear of failure is one of the biggest barriers that holds people back from making the leap.
The fear of the unknown is powerful, and many people would rather stay in a situation they know, even if it’s not ideal, than take a chance on something that could result in failure. But the reality is that the wealthiest individuals are often those who have failed many times before. Each failure is seen as a stepping stone toward success, a lesson learned that brings them closer to their goal.
Comfort vs. Growth
Perhaps the most significant sacrifice involves stepping out of one’s comfort zone. Comfort is one of the biggest obstacles to personal growth, and it’s a major reason why most people never break free from their circumstances. It’s easy to stay where you are, especially when things seem stable and predictable. However, growth never happens in the comfort zone. To break through to the top 20%, you need to be willing to face discomfort, uncertainty, and the possibility of failure.
For most people, the comfort zone feels like the only safe space. However, those who are willing to embrace discomfort and take risks are the ones who ultimately rise above the rest. Comfort may feel good in the moment, but it will never lead to significant personal or financial growth. Success requires the courage to leave behind the familiar, take on challenges, and push beyond limits.
In summary, the leap to the top 20% is not just about access to resources—it’s about mindset and sacrifice. It requires stepping out of your comfort zone, embracing risk, and committing to long-term growth. These are the qualities that differentiate the wealthy from the rest, and they are the qualities that most people are unwilling to cultivate.
Mental and Physical Endurance: Are You Willing to Work Harder?
Achieving true financial success is rarely about intelligence or talent alone. While these factors can certainly help, the more fundamental requirement for reaching the top 20% of earners is the ability to endure and persevere through hardships. Success is a marathon, not a sprint, and those who thrive in the long run are the ones who are mentally and physically prepared to work harder and longer than most people.
The Importance of Long-Term Commitment
We live in a world where instant gratification is king. From fast food to one-click shopping, we’ve become accustomed to receiving things quickly. But when it comes to wealth-building, the reality is much different. Wealth is not an instant result—it’s the cumulative effect of long-term effort. The wealthiest individuals are often the ones who work tirelessly, not just for a year or two, but for decades, with little recognition in the early stages. Most people give up too soon. They quit when results seem slow, or when their efforts don’t appear to be paying off immediately.
In order to succeed in the long term, you have to be able to withstand the initial periods of failure and frustration. The key is maintaining consistency over long periods of time, even when immediate rewards aren’t forthcoming. Whether you’re building a business, investing in your career, or developing new skills, the ability to commit to your goals, despite challenges, will make all the difference in your ability to climb the financial ladder.
Delayed Gratification: The Key to Success
At the heart of mental and physical endurance is the concept of delayed gratification. Delayed gratification is the ability to resist the temptation for immediate rewards in favor of long-term goals. It’s the difference between spending money now for a temporary pleasure versus saving that money and investing it in your future. Most people struggle with delayed gratification. They want instant results and the rewards that come with them, but wealth doesn’t work that way.
To achieve financial freedom, you must make decisions today that may not pay off for years to come. This could mean living below your means, sacrificing luxuries, or investing in education rather than spending on entertainment. The people who make it into the top 20% of wealth are the ones who can prioritize their long-term goals over short-term pleasures. The ability to delay gratification is a muscle that needs to be developed over time, and those who succeed understand the long-term payoff of these sacrifices.
Building Mental Resilience
Mental resilience is the cornerstone of endurance. The ability to bounce back from setbacks, learn from failure, and keep moving forward is a trait shared by nearly all successful individuals. Financial success is rarely a straight line. There will be failures, challenges, and moments when giving up seems like the easiest option. What differentiates the rich from the rest is their capacity to keep going, despite these setbacks.
The road to success is filled with obstacles, and only those who have the mental toughness to push through them come out on the other side. Building resilience involves developing coping mechanisms, learning to handle stress, and using adversity as fuel for growth. Instead of seeing failure as a roadblock, resilient individuals view it as a necessary part of their journey—a lesson that brings them one step closer to success.
The Luck Factor: Timing and Opportunity
While mental and physical endurance are critical components of success, it would be naive to overlook the role that luck and timing play. There are always external factors—things outside of your control—that can influence your success. In many cases, these elements can either accelerate your path to wealth or hinder your progress entirely. Understanding how luck and timing affect the game of wealth is essential for those who want to optimize their chances of financial success.
The Role of Timing in Wealth Creation
Timing is a powerful force in the wealth-building process. Even if you have the right skills, work ethic, and opportunities, being in the right place at the right time can give you a huge advantage. Some of the most successful entrepreneurs of our time were not only skilled and driven but also benefited from the timing of the technological revolutions that occurred during their careers.
Take the internet boom, for example. Entrepreneurs who recognized the potential of the web in the late 1990s and early 2000s were able to build massive fortunes by capitalizing on an emerging market. Similarly, those who invested early in companies like Apple, Amazon, or Google became incredibly wealthy because they were able to identify the right timing to make their moves.
Timing isn’t just about launching a business or making an investment; it’s about being aware of the shifts in the global landscape—whether they’re technological, social, or economic—and positioning yourself accordingly. Opportunities come and go, and those who can recognize them when they arise are more likely to reap the rewards.
Luck and the Importance of Being Prepared
While luck may seem like a random factor, it often favors those who are prepared. The opportunity to create wealth rarely comes to people who are sitting idle, waiting for success to land in their lap. Those who are constantly learning, building networks, and keeping an eye on emerging trends are much more likely to seize the opportunities that come their way. In essence, luck isn’t just about chance—it’s about being in the right position when opportunities arise.
This is where the adage “luck favors the prepared” holds true. If you aren’t putting in the work to learn and improve, opportunities will pass you by. The luckiest individuals are often the ones who are constantly prepared for when the right moment comes. This could mean having the right skills to step into an emerging industry, or knowing the right people who can help open doors that lead to financial success.
The Power of Timing in Social and Economic Trends
We also must consider timing from the perspective of larger social and economic trends. The world is constantly evolving, and what was lucrative yesterday may not be as profitable today. For instance, industries like coal mining or traditional publishing were once highly profitable, but with the rise of renewable energy and digital content, these sectors have experienced significant shifts.
Identifying these changes early and positioning yourself in the path of progress is critical to leveraging timing for financial gain. Whether it’s investing in cutting-edge technologies like AI or blockchain, understanding the rise of new consumer preferences, or adapting to economic shifts like inflation or recession, those who are proactive in anticipating changes have a better chance of capitalizing on them.
The Road to Success: Learning to Play the Game
At the core of wealth-building is understanding that life is a game—one with rules that can be learned and applied to achieve success. Wealth, success, and financial freedom are not matters of luck or coincidence; they are outcomes that follow from mastering a series of principles, strategies, and tools. The wealthy individuals of the world know how to play the game, and their understanding of these principles is what gives them an advantage.
Understanding Asymmetric Risk
One of the most important concepts in wealth-building is asymmetric risk. Asymmetric risk refers to investments or opportunities where the potential upside vastly outweighs the potential downside. This means that, with a well-calculated decision, you stand to gain far more than you risk losing. For example, a high-risk business venture may fail, but the payoff, if successful, could be far greater than the initial investment.
The key to asymmetric risk is being able to identify opportunities that provide this type of imbalance. In investing, this could mean betting on emerging startups or new technologies that have the potential to disrupt entire industries. In entrepreneurship, it might involve taking calculated risks in uncharted markets where competition is minimal, but the rewards can be huge.
Marginal Utility: Maximizing Efforts for Greater Returns
Another principle that guides wealth-building is marginal utility, which refers to the additional benefit gained from each extra unit of effort or investment. The idea is that each additional hour of work, dollar of investment, or skill learned should yield diminishing returns. Successful individuals understand how to maximize their marginal utility by ensuring that the efforts they put into any given venture are optimized for the highest possible return.
For example, a business owner might hire the right team to scale their business, realizing that delegating tasks and focusing on high-impact areas will yield a greater return on their time and effort. Similarly, an investor might diversify their portfolio to ensure that each additional investment adds more value than the last. The principle of marginal utility helps people make smarter decisions, ensuring that the resources they have—whether time, money, or energy—are being used as effectively as possible.
The Compound Effect: Small Gains Over Time
Finally, one of the most powerful forces in wealth creation is the compound effect. This principle states that small, consistent gains accumulate over time and produce far greater results than short bursts of effort. Whether it’s saving money, learning new skills, or making incremental improvements to a business, the power of compounding is what turns small, daily actions into long-term success.
In finance, compound interest is a prime example of this principle, where the interest earned on an investment is reinvested, leading to exponential growth over time. Similarly, in personal development, small habits—like reading a book a week or improving your skills daily—add up and lead to massive improvements over months or years. The wealthy understand that success is the result of consistent, incremental growth, and they make decisions based on the compound effect rather than seeking immediate rewards.
Mastering the Rules of the Game
To succeed in wealth-building, you must learn the rules of the game and apply them consistently. This means understanding how to take on asymmetric risk, leveraging marginal utility to maximize returns, and utilizing the power of the compound effect to build long-term wealth. The game of life may seem complex, but those who master these principles have a significant advantage over those who play without understanding the rules.
Conclusion
Achieving wealth is a multifaceted endeavor requiring more than hard work and determination. It involves understanding the relative nature of wealth, leveraging opportunities, and making significant personal sacrifices. While external factors like access to resources and infrastructure play a crucial role, the most challenging barriers often lie within ourselves. Discipline, continuous learning, and the willingness to take risks are essential components of this journey. As you reflect on the insights shared in this article, remember that the power to change your financial destiny is in your hands. Embrace the challenges, seize the opportunities, and pave your way to the top.