Rich vs Poor Mindset The truth is there are two types of people in the world. Those that are successful and those that aren’t. Many factors contribute to the differences of the two classes of people but one that stands out the most is mindset.
Ever watched those crazy viral videos of monks defying gravity and raising themselves above ground? They use their minds to do the most unbelievable things that have been deemed impossible. The mind is a powerful tool, you can use it to either build or break you.
Today we share the differences between the mindsets of poor a poor person and a rich person. Want to find out where you lie? Watch till the end.
Now let’s begin, shall we? But before we do, please give this video a thumbs up and tap the subscribe button if you haven’t already. Mindset One Rich people make money work for them while poor people work for money.
You might have heard this one before but we will explain it much better. Rich people understand that you can never make good money if you are constrained to an hourly pay or a pay check. We all have the same number of hours in a day so we are all limited to 24 hours of pay daily.
No matter how much you maximize on working hours within a day you can only do so much. Your pay per hour is also limited to a certain amount. However, the rich invest wisely by earning from other people’s work hours or investing in passive income sources.
Poor people on the other end, spend their lives working an hour wage. They spend their time building someone else’s dream and slave out their hours in exchange for a limited pay. If a poor mindset person didn’t go to work today they would miss out on their income.
The rich realize that you won’t build wealth if you’re constrained to hourly pay. Everyone has the same allotted hours a day, yet the rich maximize those hours. We are not saying being employed is a bad thing, in fact we advocate for it.
Employment will give you some form of foundation to raise enough capital to invest in assets and businesses as the rich do. So even if you are employed have an exit strategy. Mindset Two Rich people will invest their money but the poor stash it away in savings accounts.
Rich people invest their money to win. They invest with the mindset of getting rewards from their actions. They are willing to take risks but only the calculated ones when it comes to their money.
The rich will take advantage of downturns in the financial markets by buying more stocks while others bail and lose fortunes. Poor people have the mindset of taking zero risks. They believe in setting their money aside in savings accounts with minimal to no returns.
What they don’t know is that most banks have a return rate which is lower than inflation. The average return from a savings account is 2% but the yearly inflation is about 3%. Just to understand this better let’s give you an example.
If you have saved $100,000 in the bank with an interest rate of 2%, you will earn $2000 a year. If the annual inflation rate is 3%, then the difference will result in a $1000 loosed, yearly. Mindset Three Rich people continuously learn.
Let’s see an example, Warren Buffet reads five hours daily. How many hours do you learn? Or rather when is the last time you learnt something?
Many other billionaires and millionaires set aside at least one hour daily to study. Sparing as little as thirty minutes a day for learning can go a long way in increasing your knowledge. I bet you are wondering what reading and learning new things will help you in.
By reading you will be able to understand different aspects about money and also identify opportunities. However, don’t just read anything, choose books that will expand your knowledge. Poor people stop the learning process as soon as they step out of school.
About 24. 5% of adult Americans haven’t read a book in the past two years and a staggering 55% haven’t read in the past year. Mindset Four Rich people believe that creating wealth isn’t easy.
They know the road to success will have several roadblocks and challenges. They don’t let problems take over but instead focus on finding solutions. They don’t waste time complaining but focus their energy in finding a way.
The poor man’s mindset if full of excuses and will often if not always give up. Poor people let problems bring them down. They don’t have a way of picking themselves up when faced with challenges and don’t know how to kickstart the gear.
They surround themselves with non-supportive individuals who don’t advise them accordingly and let them grow. This is known as the crab mentality. Crabs in a bucket could work together to escape but instead they hinder each other.
Mindset Five Rich people take time to make decisions. They will weigh the pros and cons before deciding. Often, they will use references and logic during the whole process.
The rich also look at the repercussions of their actions. If I do A, what will be the outcome? This way they are able to take more calculated risks and grow their money more.
Poor people are impulsive when it comes to their decision-making process. They will often make decisions without any forethought. They will invest in a business just because a friend or family member asked them to.
You will be poor if you make impulsive financial decisions. Mindset Six Rich people are future-oriented. The rich always think about the next ten years, and are not looking for instant success.
They understand that it will take time and great effort to build sustainable wealth and stable income streams so they plan ahead of time. You will often find the rich buying stocks when the markets take a downturn or buy property when there is a housing bubble burst. The rich know the power of compounding interest and how to build a proper long-term portfolio.
They are very disciplined when it comes to spending their money. They may not buy lavish assets now but in the next five years they will be wealthy enough to afford them. In short, the rich will make sacrifices today to live a better life tomorrow.
Poor people only think of today tomorrow and maybe next week. They want to become instantly rich. They live off paycheck to paycheck because they don’t plan for the future.
Most poor people work towards getting the next meal and just that instead of financial freedom. If you want to be poor for the rest of your life then this is definitely the way to go. Mindset Seven Rich people have clear goals and targets.
They have an outline of their path towards success. They are always on the lookout for opportunities and don’t view challenges as roadblocks. This enables them to take calculated risks and make better financial decisions that will grow their money further.
They have a step by step guide clearly outlined for them to follow. There is no guessing which way to take as with poor people. Poor people on the other hand, don’t have life goals.
They don’t know what they want from life. They allow problems to always limit them. They have acquired a fear-based mentality which limits them from growth.
They don’t have the motivation to follow through with a plan. Therefore, with nothing to look forward to and no action plan they end up in poverty. Mindset Eight Rich people never settle and don’t stay within comfort zones.
They are always looking forward to the next step in life. They love to take on challenges and create advancements in life. They will tackle a problem head on despite being afraid.
As for the poor people comfort zones are the best environment. They hate problems and will run away from unfamiliar situations. They have no will to leave they comfortable way of life and achieve better.
When an opportunity presents itself and it happens to be slightly different from their usual they will not take it on. Most poor people are comfortable in their low-wage jobs and will not start something different to boost their income. Mindset Nine Rich people are innovators while the poor are consumers.
The rich are the creators of the world. They are the pioneers and entrepreneurs who take on risks and create new products, services and concepts. They spend most of their time learning and innovating.
They add value to the world. The poor, however are just consumers. They consume the products created by the rich and make them even richer.
They shy away from inventing anything or challenging themselves. Instead of investing their little money, learning something new or creating something, they spend their time struggling to acquire the latest status symbol. Inevitably 90% of their income goes to buying things and services that will generate wealth for the rich.
Mindset Ten The rich build lasting relationships based on respect, trust and shared values. They will then help each other grow and reach the next level with zero expectations. They don’t expect any favors in return once they offer help.
But, the rich believe that if I scratch your back you will scratch mine. They make unstable relationships with people with no goals or discipline. If you happen to be in the latter category start by evaluating the people you spend the most time with.
Who are they? Do they have a rich mindset? If they don’t replace them with people who have one.
You can attend events or local meet ups to make new friends. Make the right connections and you will all win. Mindset Eleven The rich understand the importance of having a good reputation.
They know it is everything and that it takes respect and trust to gain one. They also understand that the same way the reputation was gained it can be lost. The poor mindset individual is shady in character.
He or she will do anything to make a quick buck even if it will jeopardize their image and reputation. To change from this, one will need to take the high road and consider the repercussions of all actions. It is easier to damage one’s reputation than to build one, so with this in mind ensure you always do the right thing!
Mindset Twelve Rich people understand the value of time. You will never find them lazing around wasting time. They know time lost will never be re-gained and treat it as their most precious asset.
As for the poor mindset individual, he or she is always looking for the next vacation center. They will waste hours every other day watching tv shows, consuming alcohol and drugs or gossiping with their peers. I hope now you understand why the rich keep getting rich and the poor just getting by.
Do you have a rich or poor mindset? Let us know what you think about this video. We look forward to your comments.
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