Many people think that life is very unfair. Here you are working hard and yet your income is not even enough to buy you an ice cream. On the other side of the coin, you know someone who does not even shed a drop of sweat and yet lies in luxury. If you think that life has been so rude on you and you were only born to suffer your destiny, then you are thinking as a poor man would think.
But if you think that you are the master of your destiny and you are in total control of your life, then you have a rich man’s mentality.
It’s all about getting the knowledge of the rich people behaviors. Whenever you ask a rich person about how to become rich? Majority of them will answer you that becoming rich do not follow a specific pattern and method. The hidden thing is their behaviors that help their ways of getting rich.
It’s all about how do they think and how do they react to their thinking.
In our present society, the difference between the wealthy and the poor is growing wider every day. The rich becomes richer while the poor becomes poorer. To help us understand the satirical situation, we need to go into the mentality of the rich and blessed people and compare it with the way of thinking of the poor and underprivileged people. Here are the ten distinct differences in the money mentality of the rich versus the poor people. While reading the differences, try to assess your own mindset and see where yours mostly belong.
But remember that by defining ‘rich’ and ‘poor’ I am not referring to an individual’s current bank account size, net worth, assets, and so on. But rather, I am referring to the state of mind. A human mind is so powerful it can create assets, or even liabilities. If you have a mind conditioned to be poor, no matter what wealth you have today you can lose it all sooner or later. On the other hand, if you have the mind of a rich person’s, you can create your wealth from scratch or get it all back faster than it took you the first time, even if you lose it all today.
1. Rich People Believe that They Create their Own Destiny while Poor People Believe that they are Predestined
Destiny refers to the predetermined course of events in one’s life. The idea of destiny has a deep history and divine intervention is the most popular belief. People trust that their lives depend on the will of a supernatural being. All of the actions are in vain if it does not coincide with the will of the divine.
ƒ¼ Destiny versus Action
Rich people create an amazing life because they do not believe in predetermined fate. Instead, they believe that life is what they make it. If you repose all day and wait for the big fruit to fall into your mouth, nothing will move. Everything will stay in its place unless you move it. Like Newton’s Law of Motion, “Unless acted upon by a net external force, a body at rest remains at rest and a body in motion remains in motion”. This scientific example is true even in real life and rich people apply this theory in their lives. For rich people, they believe they are responsible for their own life. They create their own destiny and not the economy, luck or knowledge.
Poor people, on the other hand, believe that they are the slaves of their own destiny. Whatever they do, adversaries come no matter how they elude them.
ƒ¼ In-Control versus Out-of-Control
Poor people believe they live an unruly life. Their existence is very uncontrollable. When they act, the results are always unmanageable. When they fail in their endeavors, they blame the economy, the boss, their family and others who did not go accordingly.
Rich people think otherwise. Life is a series of plans. With the right planning and appropriate actions, the results are favorable. They take full accountability for all their actions.
When you keep on thinking that life only happens to you, you will eventually lose the power to change things and control your life. A rich man takes responsibility for the circumstances he created while a poor man feels like a victim of the world. If you want to attain financial abundance, think as a rich man would do. Believe that you create your future and not other people or events.
2. Rich people pay attention to the new chances while poor people focus on problems
Opportunities come in both direct and indirect ways. Problems mask the chances that come. When you look at things superficially, you only see the façade and fail to appreciate the blessing under.
ƒ¼ Opportunities versus Obstacles
It is the attitude towards a problem which differentiates a wealthy individual from the poor individual. When faced with a problem, a poor man sees it as an obstacle to his easy life. He detests difficulties and sees it as a hindrance to his laid-back life. The more problems he faces, the more he views his life as complicated.
Rich people see problem as a door for new opportunities. They focus on solution rather than dawdle in despair. With every obstacle, they treat things positively and look beyond what is obvious. Rich people concentrate in finding solutions to their crisis. They elucidate things to see things at a better perspective.
ƒ¼ Action versus Complain
Poor people keep on complaining about the obstacles. They squander time whining about the circumstances in their life. At the end of the day, their grumble intensifies since they have not done anything to solve the issue.
Rich people act on their problems. They may moan a little, but they work to unravel the misery. The more problems they solve, the better their feeling.
Problems and failures are part of your molding process to become tough and be a better person. With problems, you learn from your mistakes and do better when the next one comes. When you face an opportunity, you come up with creative solutions. Avoid the poor man’s action of sitting down and staying cranky about it.
3. Rich people have big dreams while poor people dream small.
Dreaming is the motivation to success. When a person dreams, he exerts effort to attain his dreams. Both rich and poor people dream. The difference is the size of their dream. When you have small dreams, you work less whereas big dreamers work harder to achieve their vision.
ƒ¼ Big versus Small
Poor people have little dreams. They often dream to eat three times a day, have a small house to live in and get a job with good pay. These are all the dreams of a poor man. Because any casual employee can easily achieve these, many poor people feel they do not need to exert any more effort. Anyway, why work harder? They have achieved their dream after all.
For rich people, to achieve big things, you have to dream big. Wealthy men stick to this principle. They do not dream to eat three times a day, they dream to eat more than that in luxury. They do not dream of a small house, they dream of a comfortable house for their family plus a rest house during their vacations. They do not dream for job with good pay. Instead, they create jobs.
ƒ¼ Aspirant versus Contentment
Poor people get contented with what they have. They do not aspire for more. They believe that to desire for more things means to complicate your life. When poor people achieve their small dreams, they start to live a shoddy life.
Rich people aspire for more. They believe that their abilities can bring them to places. Because they have big dreams, they work hard to turn aspirations to reality.
You cannot achieve bigger things if you only have small dreams. When you dream, dream big, anyway, there is nothing to lose in dreaming
4. Rich people commit to their dreams while poor people sleep dreaming their dreams
It is a fact that dreams is the initial step to success. But it does not end there. In order for dreams to come true, you have to work for them.
ƒ¼ Commitment versus Dreaming
Poor people love to dream even when the sun is all up. They stay in dreamy mood even when it is time to work. They keep on dreaming that things will just happen in a snap. They keep on thinking how good it is to live in opulence but never do anything to experience it.
Rich people work hard on their dreams. They commit each day of their lives to reach their goals. They pile up their efforts to assemble their dream life.
Dreaming big does not make you rich. You need to work hard when you set your goals. Small steps every day are better than just waiting for time to pass without action. At the end of the day, the small deeds can accumulate and lead you to the stairs of success.
5. Rich people play to win while poor people play only not to lose money
The big mindset difference is the purpose of playing the game. Life is a gamble. Every decision is a risk. There are no certain in this world.
ƒ¼ Risk-taker versus Playing Safe
Poor people play the game of life only just to prevent losing. They are too careful to invest and make sure that things turn out the way they want. When in doubt, they never make decision. They always stay on the safe side. They stay attached to the stigma of failure and too afraid of making mistakes.
For rich people, life is about taking risk. Because they exactly know what they want, they invest in order to win. For them losing is never an option, they study and analyze how things work and invest once they get to know the flow of things.
Only those who are willing to take risk achieve financial stability and abundance. The bigger the risk that you take, the bigger is your reward. However, even rich people do not jump to risks without preparation. When you are to take a risk, be sure that your preparation is enough to ensure winning. Be armed when you gamble with life.
6. Rich people network with the rich and successful people while the poor people network with poor people.
The people around you have an indirect effect on our ways of thinking. Try to associate with pessimist people and you will be a pessimist eventually. However, when you go to a company of jovial individuals, you absorb their cheerfulness.
ƒ¼ Receptivity versus hostility
Poor people are hostile to rich people. They think that their lifestyle is not tolerable. Instead, they associate with people with the same income as theirs. They spend time wondering how rich people become richer and envy the luck they have.
Rich people are receptive to new ideas and new people. They spend time with people who can help them achieve their dreams. They join people earning six digits or more. They analyze how these wealthy people become richer and imbibe their ways and thinking.
Poor people think that your wealth depends on your family origin. You are rich if only you belong to a family of rich. Rich people think otherwise. They go with people who can help them. They talk to financially successful people taking notes of their secrets to prosperity. With the right associations, you can become rich even when you come from poor family
7. Wealthy people like to learn every time while the poor individuals do not do so in misconception that they don’t need any learning they are already learnt a lot
The whole life of a man goes on getting new knowledge and experience. This process does not stop until you are alive however when you intentionally do not want to learn more this process can be stopped. Otherwise the more you live the more learning you will get.
ƒ¼ Open-mindedness versus Close-mindedness
Poor people believe that they know everything. They know how life works and how to live well. Their beliefs make them close their minds to new ideas. If you are not willing to learn, you will never know why rich people become richer and why remain poor despite all your efforts.
Rich people admit that they still need to learn. When you give a room for improvement and new ideas, you open your mind to possibilities. One of the easiest ways to financial abundance is to learn from people who achieved the status.
The key to financial success is to accept your shortcomings and learn from people. To go at the top you must have to follow the toppers and get knowledge of how to go at the top. Only when you open up for learning can you live a life of abundance.
8. Rich People are Leaders while People are Followers
Most financially successful people lead the way. Being a leader, you are in front of the actions. Because of the courage needed to be a leader, only those with strong personality become the manager.
ƒ¼ Leaders versus Followers
Poor people have herd mentality. They like to follow where the water flows. Instead of taking the lead, they are happy to let others do the thinking. They do not want to take responsibility over their decisions. When somebody asks for their opinion, they pass it to others so as not to take the blame for failures later on.
Rich people take the initiative. They decide for themselves and take full responsibility for their decisions. They can work independently.
Rich people are leaders and leaders are rich people. This idea comes because of the independent attitude of leaders and rich people. Even if an ordinary office setting, the leaders are often responsible for the whole group. They may have bigger responsibilities but they get higher pays too.
9. Rich people try to save while poor people are more attracted towards spending
How much do you earn in order to get wealthy you will have to save some part of it. Let’s suppose that your savings are 5 dollars per day it will constitute the saving value of 1825 dollars per year and which will aggregate to an amount of 18250 dollars after 10 years. Even if you earn 100,000 dollars a month but you also spend the whole amount, you will never get rich until your death.
ƒ¼ Saving versus Spending Poor People
Poor people usually spend more than what they earn. They do not believe in the value of savings. They earn 100 dollars and spend 110 dollars. In time, the excess expenditure piles up and before they know it, they are drowning in debt.
Rich people stays on a monthly and even daily budget. They spend only within their declared budget. They save a portion of their earning in the bank to earn further interest.
ƒ¼ Debit Card versus Credit Card
Poor people rely on credit cards. They cannot live without them. They dine out, shop and indulge to vacations using their plastic cards. Because they do not see the expenses and their cash remains intact, they feel that they are in complete control of their finances. Only to find out later on that everything is getting out of control.
Rich people do not purchase with credit cards. If they do not have cash, they use debit cards. They believe in the saying, “if you cannot afford it cash, you really cannot afford it”.
ƒ¼ Cautious versus Impulsive
Poor people are impulsive buyers. They buy anything on sale and anything discounted. Even if they do not need the items, they keep on buying thinking that they can save from the discounts.
Rich people think about the product many times before purchasing. They consider the affordability, quality and the usefulness of the item. When the item fails one of the criteria, they think about it repeatedly before finally deciding.
Earning money is hard. Because of the difficulty earning it, think twice or even thrice before you let go of your hard-earned income. No one knows the future, it is therefore important to save to ensure that you have something in case of drought.
10. Rich people have their money work hard for them while poor people work hard for their money.
Everybody works hard. The way to let your money work for you is to know where to invest it. If you know where to put your investments, then you will make your money work hard for you.
ƒ¼ Successful Investment versus Futile Investment
Poor people keep on looking for money to come along. They keep on working and working to earn. They spend beyond their means and resort to loans that accumulate interest.
Rich people know where to invest their money. Instead of the banks charging them for credit card interest, they collect the interest of their savings. They experience a restful life while their money is working for them.
In order to stop working hard for your money as poor people do, live within your means and save up. Let your money do the work and enjoy life.
The 4 Essential Wealth Skills
It is everyone’s dream to be rich and wealthy. Everyone has some certain luxurious dreams which can be fulfilled by having enough wealth. It is everyone’s dream to trot around the world, send the children in esteemed universities, indulge in lavish pampering and donate to charities to help the poor. To take pleasure in all of these seems to be a distant ambition.
Everyone wants to be a millionaire. But the key to being one of the richest men in the world is to know the essentials to bring all the luck you need. Although there is no exact formula for richness, there are keys that will help you unlock the doors to success. It boils down to an effective system that rich and wealthy people apply. This should probably be very effective for them to live in luxury and their children’s grandchildren. To employ the same skills will lose you nothing. Anyway, yes, you eat three times a day but you barely fit in the trivial income your family has.
Before introducing the essential wealth skills, it is only proper to prepare you to your journey to prosperity. Like in any endeavor, you need to prepare and arm yourself with the anticipated needs. In trotting through the road of financial abundance, you have to organize yourself. Here are the important things that you must bring with you as you move through the road to success.
The start of financial abundance is the vision you have to set. As your vision gets bigger, your chance of becoming a millionaire is also bigger. Anyway, what is there that you have to lose? To count the countless millions in your hands, you need to visualize yourself with hands on your fortune. Do you want a car, two cars or three? Do you want to have one successful business or an international business with branches all over the world? Think and imagine what your power can accommodate. Focus on the positive outcome of things and envision a comfortable and financially abundant life for you and your family. If you believe this will happen, it will. Otherwise, your doubts will keep you stationary.
Wealthy people do not just dream. They plan things and they do it specifically. They have a plan everyday and they stick to it. They consider each day as a day to contribute to their future success. You just cannot leave your life to luck or as poor people see it, to destiny. Millionaires do not believe in predetermined fate. Instead, they hold responsible for their lives. They are in perfect control of their destiny. Instead of sitting down, they write all their goals and make a systematic wealth plan that they religiously follow.
For you to reach your goal and set plans, you need to understand your whole situation. Look at your status at a wider perspective. Millionaires understand the flow of many in their hands. They know how much comes in and how much should they let go. Poor people only try to balance this flow. Sometimes they output is even higher than input. But for millionaires, their cash output is lower than their cash input. Therefore, they can save from their earnings.
To become a millionaire, you have to be committed to your dreams. Earning millions need a lot of effort and commitment. Remember, the road to financial abundance is not very easy. There will be myriad of obstacles. If you have little commitment to your dream, you can quickly give up when you stumble.
Here are the essential things that you have to bring with you along the road to millions. If you are ready to take a major turn in your life, read on below to know the secrets of those sleeping in luxury. Be ready to assess your own life and take action to make a change. As you read the article, you will be surprised to know that all you need to have are four wealth skills and you are ready to commence the journey to prosperity. Now, let us see if you can reach the end of the road.
WEALTH SKILL #1: Making Money from Scratch
It may be quite skeptical to become a millionaire from scratch. But it is true. Many rich men started from nothing.
Unlike other people who have a thick checkbook, plentiful savings and many properties to liquidate to start up a business, you are probably thinking that you can never be a candidate to become a millionaire. However, you do not need all these. All you need is yourself. You are the biggest and most indispensable asset of your future business. There are many known ways to make money from scratch. If you think this is impossible, then look around. Most successful people started out of scratch. All you need to do is to let your imagination work, be creative and confident.
Selling is the traditional way of making money from scratch. You can sell your stuffs especially your second hand things, junks or other odds. Instead of keeping the items in your storeroom, you can turn these into cash. When you do this, you will be one of those who will say, “There is money in trash.”
If you have a good communication skill, then, you have the power to convince people with your words and your words can be your best asset. Many successful real estate entrepreneurs started from scratch. With only their voice and words as starting capital, they were able to create millions.
Aside from real estate, you can also sell of other people’s products. You can offer selling their stuffs along with your own. In return, you can get commission for every item sold. Selling gives you unlimited source of funds. As long as you are industrious in dealing with different people, it is a sure hit. However, since you work in a customer related environment, be sure to have a lot of patience. You will meet people with varied personalities that will test your character. But do not get into them. Keep in mind that they can be your potential key to success.
If you are into selling, you have to be always on the go. If your business calls for it, you need to be where the action is. Time flexibility is very crucial since many clients do not want waiting and there are many competitors out there yearning to earn as much as you do. Although it may seem to be a tough start up, you will gain the fruit of your efforts as you create a name for yourself. When that happens, you can be the boss of your own company.
2. Offer your Service
Each person has a unique skill to offer. The secret to making money from scratch is by taking advantage of your uniqueness. You can stand out from the crowd when you show your exceptional ability, talent or skill. To turn your skill into cash, offer your service to others. Advertise yourself and keep your customers satisfied to ensure a repeat customer or referral from others. Aside from the usual forms of advertisements, do not forget to charm people. Millionaires have a certain charm that draws people to them. As you bring more people closer to your services, your very own company will be a multi-million worth in no time.
Offering services is not only easy money. It also serves as an outlet for your talents, skills and abilities. Remember, you were not here to keep your uniqueness within. You have to share it to the world and make it known. It does not only improve you, it also benefits other people.
The whole idea is to look for problems of clients and find solution to those problems. If people worry about broken things, fix them. As long as you find a solution for their most common problems and needs, then you will never lose your business market.
3. Go Online!
With the advent of online businesses, you do not need to go out of your own comforts just to get a six-figure income. You can earn money right form your home as long as you have internet access. When you are online, the possibilities of making money from scratch are endless. Money is just under your nose and only one click away. The good thing with online job is you get to stay at home, with no bosses and still you earn better than those working within the bounds of their office. Here are the common online money making jobs.
Online blogging started out as a hobby of people. It was their outlet on their emotions and everyday sentiments. However, as people relate to your own stories, you acquire followers that contribute to your blogs. As your blogs increase in number, visitors come and interact with you. When online advertisers see the increase in traffic in your site, they begin to ask for an ad space, and this can be your chance to earn income from something that started out as a hobby.
People use the internet as their primary source of information. This is the reason why online marketers require huge amount of information to satisfy the majority of online searchers. However, not all people have the time and talent to write and this is where you can come in. You can write for somebody and get payment for it.
Making money from scratch is tough. Your capital is only yourself. However, do not worry; you have the best starting capital that even big companies do not have. In investing huge amount of money, you also risk a lot. However when you start from scratch, you have nothing to lose and everything to gain. It may be quite challenging but the rewards are gratifying. If you want your first million now, you can have it right away. It is your own pace and no one will dictate how much or how little you can earn.
WEALTH SKILL #2: Budgeting Your Money
In the first part of the article, it mentioned about understanding your money. If you want to be a millionaire, you need to learn the wealth skill number two, to make budget of your money. Rich people do not spend more than what they earn. Instead, they religiously keep a portion of it and let it earn interest. To follow their footsteps, you learn to manage your finances. Unless you learn this important skill, you will never reach the road to financial abundance.
Importance of Budgeting your Money
Making budget of your money gives you knowledge of your earnings and spending. When you a basic knowledge of the whereabouts of your money, you create financial stability which is the crucial step to abundance.
When you know how to budget your money, you develop self-discipline. You are able to control your finances and avoid unnecessary expenses. Learning to budget makes you the boss of your money instead of being a slave to your finances.
Organizes your Finance
Organizing your finances warns you for any potential financial problem. Your budget can serve as a record of all your financial transactions, guide for paying utility bills and immediately warns you when you overspend.
Offer New Opportunities
When you know how to budget your money, you can grab opportunities that you may otherwise miss. Because you know the flow of money, you can exactly determine if you have excess funds to invest to other moneymaking opportunities.
Provide More Cash Flow Money
The greatest benefit of making the budget of your money is having extra money. When you cut unnecessary payments like penalties and late interests, you can save up for your future needs. When you pay your bills on time, you not only avoid late charges but also create a good name for yourself and your company.
Earning your first million is challenging and budgeting it according to your needs is even more challenging. The key to being rich is to be in control of your finance. Knowing the benefits of budgeting is futile if you do not practice it. To arm you with the competence needed in Wealth skill number 2, here are the tips to help you stay within the budget.
Tips to Budget your Money
Make a List
When you receive your first million, keep it a habit to make a list of the things that you need to pay. Determine your future expenses and set aside funds for your needs. If you run a business, make sure you separate the working budget of your company. These include money for purchasing, maintenance and salary of your employees. If you do not have a company and only works for yourself or for others, know your expenditures until the next payday comes. Write specifically each item and opposite each, its corresponding amount. This way, you will know whether you are still within your budget or you are exceeding from your earnings.
Separate your Money
For people who are very impulsive when it comes to spending, separating the budget into parts is ideal. You can allocate your funds based on the following:
ƒ¼ Working Budget
Your working budget includes your daily or monthly expenses. Usually, this comprises the biggest share in the budget. This is where you will get the payment for your monthly bills, food, allowance and transportation.
No matter how small your income, savings should be a part of your budget. To be wealthy means to save more than what you spend. Even a meager earner can become rich as long as you save enough for your future. The savings must comprise at least 20% to 30% of your monthly budget.
ƒ¼ Spending Money
Of course, life will be boring if you only work to live and save. Your monthly leisure activities must be a part of your budget. As the cliché goes, “All work with no play, makes a boy a dull one.” Working is more rewarding and fun if you get to treat yourself occasionally. You can get the money for your new clothes, vacation or pampering yourself from the spending money. To avoid overspending, make sure to leave your debit and credit cards at home and stay strictly within your spending money.
WEALTH SKILL #3: Making More Money with Money
Once you have your millions, you can become richer by comfortably sitting at home and letting your money do the work. Millionaires are richer not because they work hard to earn their millions but because they let their money work hard for them. If you are on the way to financial abundance, here are the proven ways to let your money do the work for you.