Why are you working so hard and still not rich? If you don't understand this effect, it's useless no matter how hard you try.

Let me tell you an interesting joke. Huawei requires employees to implement the 996 work mode. An employee who worked overtime every day, could not take care of his wife and children, asked to leave. The leader said: "You don't have to leave your job, you can get a divorce."

How do you feel after reading it?

Although this is a joke, we can see the relationship between rich and poor today. Today, the rich have become rich, but they still squeeze their employees to get the most benefit at the lowest cost.

Institutional staff within the system still hold 5,000 to 6,000 salaries for the rest of their lives. Employees working in enterprises are faced with 996 work requirements, and overtime is the norm. Ordinary people work hard to get into the wealthy class. But how many are successful? Conversely, the rich can make a lot of money by investing at will.

The richer you make more money, the poorer you make less money, which can be explained by the Matthew effect.

1. What is the Matthew Effect

The Matthew effect refers to a phenomenon where the good is better and the bad is worse. That is, polarization. To put it bluntly, the essence of the Matthew effect is that the strong are always the strong, the weak are always the weak, and the winner takes all.

French economist Thomas Piketty has been studying the Matthew effect for 50 years.

He found that over the past 50 years, the income of the poorest 50% of Americans has grown by less than 1%, while the income of the richest 1% has increased by 300%.

China Merchants Bank released the 2019 China Private Wealth Report, which is suffocating. The compound annual growth rate of Chinese high-net-worth individuals (invested assets over 10 million RMB) is 12%, while the compound annual growth rate of wealthy individuals (invested assets over 50 million RMB) is as high as 17%.

That is to say, people with a monthly salary of 10,000 yuan work very hard, and their wages may not increase by more than 4,000 yuan by the end of the year. When millionaires check their bank cards at the end of the year, they suddenly find more than a million left.

The wealth of the rich is growing at a terrifying rate, like riding a rocket, and the average person cannot keep up with their wealth even though they work around the clock.

Ordinary people are trapped by living expenses, mortgages, car loans, children's tuition, transportation, etc., and their wealth will only be continuously drained.

The rich have long surpassed these limits, and they have more leverage to increase their wealth. The further they go, the bigger the gap. Therefore, the gap between the monthly salary of 10,000 yuan and the monthly salary of 100,000 yuan seems to be only 10 times, and there is a magnifying glass behind it, which constantly widens their gap.

2. Commercial competition

Business competition is the law of the jungle. People who make money make more and more money, and people who don't make less and less money.

You must be familiar with this phenomenon. One of the two side-by-side restaurants had long queues and was packed, while the other was lifeless and empty.

People in line would rather wait two hours than go to another restaurant to eat.

Many people think that there is a large gap, but in fact, this is only the result of small deviations amplified by the Matthew effect.

For example, a certain dish in his house is delicious, his service attitude is good, and his marketing plan is also good, which is only a little bit better at the beginning, but when he does it well, he goes beyond a lot peer.

In fact, if you think about it, everyone is doing catering. Does it really make a big difference?

No, it's just a little bit different because everyone is not stupid. However, it's only a little bit better, so a lot of people eat, and then they keep adjusting and optimizing, their business will get better and the poor will get worse.

This is the law of the weak in the world. When you're weak, the more bad guys, the worse your business, the more trouble you'll have, the better your business, the better off you'll be.

3. Workplace Competition

The Matthew effect is even more bloody in workplace competition.

There is a company owner who happens to have employees with monthly salary between 10,000 and 100,000.

If there is a salary increase, he said he would give priority to those with a monthly salary of 100,000 yuan, and those with a monthly salary of several thousand yuan or 10,000 yuan, even if they wanted a raise, they would not raise their salary significantly.

Many may find it difficult to accept that this is unfair. Why are you doing this? This is also an unspoken rule in the workplace. The higher the salary, the higher the salary, the lower the salary, the less the salary.

what is the reason?

The core reason is that people with high salaries are irreplaceable.

There are no such people, I can't find them outside, otherwise it will cost a lot of money, so the bosses are worried that they will quit, and they will definitely be prioritized when it comes to raises.

If the salary is low, you should quit your job if you want. I have a lot of jobs when I go out, and I can go to work after simple training, so I am not afraid, just give a similar salary in the industry.

Therefore, many people complain that the salary given by the boss is too low, the work is too tiring, and they want to quit every minute.

Just wanted to ask you, are you irreplaceable in your organization?

4. If you don't understand the Matthew effect, it's useless no matter how hard you work.

You work hard and fail, that doesn't mean you don't have talent or ability. Similarly, Wang Like Sicong, a son of a wealthy family, can create hundreds of millions of wealth at will, which does not mean that their talents and abilities are stronger than yours.

The Matthew effect is like a door separating the rich and the poor in two rooms.

Some people never open the door to wealth in their life. The problem is not the level of effort, but the Matthew effect. The door to the rich is not so easy to open. When a field has no contacts, information and other resources, even if you work hard, don't forget that your competitors are the entire industry, but believe that most people are ordinary people.

You need to know this clearly. You work for the company and it's always the boss who makes the money. The harder you work, the more your boss will earn. Will other expenses increase even if your monthly income goes from 5000 to 10000? Are you ready to change your house and car when your monthly income changes from 10,000 to 30,000? At this point, we will be in a loan crisis.

And those who are rich, who have a lot of money and connections, and a lot of talent, can throw away a little money with just their hands, and they can get it back many times. In addition, their children have received elite training from an early age, and they will have the support of the older generation when they start a business, which is much easier than those who have no resources, no money, and only one passion. Remember, you can't accomplish great things with one passion.

5. How the weak can break the Matthew effect

Class solidification is now evident. When you get to this level, it's hard to get to another level. Implementing 996 is a means and a way for these rich people to maintain their identity. Then, as long as you succeed once, earn the first pot of gold, and enter the rich class, it is difficult for you to fall behind easily.

Shi Yuzhu was on the verge of bankruptcy due to his investment in Giant Building, which led to a break in the capital chain, with a debt of 250 million yuan. But he borrowed 500,000 from a friend and founded "Melatonin" before making a comeback.

In this process, the most important thing you get is not money and material things, but a new way of thinking. To put it bluntly, you know how to make money.

So even if you are poor, once you win, you know how to win again and again. So what should we do?

1. Break the mindset

Don't think that there is an insurmountable gulf between poverty and wealth.

2. If you have the ability and conditions, it is best to start a business

Currently, the market in most industries has been carved up or is being eroded by several business giants. Are you a self-made white man, will you PK with a big boss with strong financial resources?

Therefore, it is necessary to get involved in new industries, seize opportunities in new industries, and earn the first pot of gold

3. No matter what you do now, you must accumulate contacts

The network accumulated here does not mean that you only make friends in your industry, nor does it mean that you are a mixed bag of friends, but to be accurate to the industry. Whether you're an executive or a general technician, you should make friends. Because maybe one day it will be used and it's too late to ask for help.

4. Seize the opportunity

Opportunity is an illusory thing, an elusive problem. Opportunities change with changes in national policies, world conditions and economic development.

Just like going to the sea, which was popular during the reform and opening up period. The first people went and made a lot of money. Later, Jack Ma, Wang Jianlin, Liu Qiangdong and others seized the opportunity of SARS, and now they are the richest people in the country. Whether or not to seize the opportunity depends on individual ability.