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By Jason Hartman
17 ways rich people think and act differently from poor and middle class people, so let’s get into these 17 great tips and I hope you enjoy them.
17 ways rich people think and act differently from poor and middle class people, so let’s get into these 17 great tips and I hope you enjoy them.
No. 1, rich people believe that I create my life. Poor people believe life happens to me. So obviously, the difference there is being the creator and the source or being the victim and the bystander. So take control of your life.
No. 2, rich people play the money game to win and poor people play the money game not to lose. Big difference in thinking here. When you play the money game to win, you play out of abundance because it really is a very abundant world where we all have numerous opportunities in front of us and we’ve just gotta pursue them out of abundance and out of opportunity, rather than out of fear and scarcity. So the poor people are trying to conserve what they have, while rich people are trying to create more and more. And so the abundant attitude and the prosperous attitude is obviously, where we want to be as real estate investors, and real estate allows numerous opportunities to act, think, and create our lives that way, in terms of making the money game win for us and for others.
No. 3, rich people are committed to being rich, whereas poor people want to be rich. There’s a big difference between a commitment and a wish. A commitment means that you jump in with both feet and you make it happen. You take action rather than being a bystander, a spectator, and a critic who’s on the sidelines. So play the game to win, be committed to it, jump in and do it. Don’t just sit there and wish and dream about it. Make it happen. Start to today by taking some action. There’s an old saying that the journey of a thousand miles begins with a single step.
No. 4, rich people think big. There’s a great classic book called The Magic of Thinking Big, and I’d recommend it to any of you. I can’t remember who the author is off the top of my head, but it’s terrific. Look it up on Amazon. No. 4, rich people think big and poor people think small, so keep that in mind when every opportunity in life presents itself and how you want to handle it and take advantage of it.
No. 5, rich people focus on opportunities. Poor people focus on obstacles. There’s a great old quote I remember by I think it was Jack Paar who said, “My life seems to be one long obstacle course with me as the chief obstacle.” So get out of your own way, focus on opportunities, and create what you want in your life.
No. 6, rich people admire other rich and successful people, whereas poor people resent rich and successful people. Huge difference here, again, acting out of abundance or acting out of scarcity. Do you secretly see successful people and are you jealous of them, are you envious? Make sure you do not have those destructive beliefs because they will keep you from the abundance you could have. Always admire rich and successful people and try to use them as role models to create more in your life.
No. 7, rich people associate with positive, successful people, whereas poor people associate with negative people. You know, a long time ago, I was reading a book by one of the great philosophers on business and success in life, Jim Rohn. Maybe you’ve heard of Jim Rohn, but he is a phenomenal, phenomenal speaker and philosopher about business and success. And he said that the people you associate with are so vitally important because when you have something good happen or you’re thinking positive and you wanna move forward in life and make things happen and create success and abundance, and then you go back to your friends and associates and start talking to them about it, and it’s like getting in an elevator where you’re pushing the up button and they’re pushing the down button. So make sure that you are not associating with negative people and you are associating only with positive, successful people that can enrich your life.
No. 8, rich people are willing to promote themselves and their value. Poor people are not. So you know the old saying about shameless self-promotion. Well, that’s kind of a joke because really, if you have value, you should share it with the world. I was out Thursday night and I was talking to another real estate investor, actually in a bar of all places, and he said, “You know, Jason, you seem like a real go giver.” And I thought that was a really neat thing that he said, rather than a go-getter. A go-giver. So share your value, promote yourself; don’t be that type of person that is not out there promoting what they have to offer the world. Share what you’ve learned, share your knowledge, share your experiences with others so you enrich your life and their lives. You’ll never learn something better than you will by teaching it. That is the best way to learn.
No. 9, rich people are bigger than their problems, whereas poor people are smaller than their problems. It makes us stronger. Every obstacle we overcome makes us a better, stronger person. The poet Sophocles said 2000 years ago ‘one must wait until evening to see how splendid the day has been.’ So remember, always be bigger than your problems. In fact, seek out challenges so you can overcome them and become a stronger, better person for it.
No. 10, rich people are excellent receivers, whereas poor people are poor receivers. Well, when someone gives you something, do they give you a gift, a compliment? Make sure you receive it graciously and appreciate it, and don’t feel guilty about receiving it. The world should be enriching us and should give us things, so take advantage of them, appreciate them, be grateful for them, and move on and the world will give you more.
No. 11, rich people choose to get paid based on results, whereas poor people choose to get paid based on time. Another great business philosopher and speaker, Dan Sullivan, the Strategic Coach – he’s a popular speaker on the YEO, Young Entrepreneurs Organization circuit – and he says that there are two economies. There is the results economy and there is the time and effort economy. So make sure that you are, as much as possible, in the results economy because when you’re in the results economy, you can leverage your efforts and create more value more quickly, rather than being in the time and effort economy. Professionals, lawyers, accountants, employees are selling or trading their time for money, whereas entrepreneurs and sales people are trading their results for money. And when you trade results for money, you can create a lot more value a lot more quickly. You get a lot more leverage over things.
No. 12, rich people think both. Poor people think either/or. And that’s back to what I said earlier is that think abundance rather than scarcity. The world is an extremely abundant place, so think both, think inclusively, think abundantly, rather than out of scarcity, out of choice either/or. I can have this or that. Why not have both?
No. 13, rich people focus on their net worth, while poor people focus on their working income. Robert Kiyosaki, the Rich Dad, Poor Dad author, talks a lot about this. He talks about how working income or earned income is taxed and burdened at the highest rate by our government, so you wanna create investment income, portfolio income, and passive income because, again, it offers you leverage and it offers excellent, excellent tax treatment. So focus on your net worth rather than your working income, being in the results economy rather than the time and effort economy.
No. 14, rich people manage their money well, while poor people mismanage their money well. Do I really need to say anything about that one? Manage your money well.
No. 15, rich people have their money work hard for them while poor people work hard for their money. So again, make your money work. The Richest Man in Babylon, that classic, old book, they talk about how your money is like your offspring. Put your offspring to work so that it can multiply. Don’t constantly keep working and trading your time for money. Make your money work. Learn how to manage money, learn how to understand the nature of money, and learn how to make it grow.
No. 16, rich people act in spite of fear, while poor people let fear stop them and keep them from acting. You know the old saying: There’s nothing to fear but fear itself. Go in, jump in, face fear with gusto, and you’ll find you’ll grow and you’ll just overcome things as you constantly take on one challenge and one fear after another. And suddenly they won’t be fearful at all.
No. 17 and finally, rich people constantly learn and grow while poor people think they already know. You know what I’ve noticed about rich and successful people over the years is that they are teachable, they are curious, and they are interested in learning, while poor people are arrogant, intellectual snobs, and know-it-alls. Always be learning; always be growing. You will never know everything. There’s always something more to learn and as Ray Crock, the founder of the McDonald’s franchise – not the original McDonald’s restaurant – always liked to say, as long as you’re green, you’re growing. As soon you’re ripe, you start to rot. So keep on learning and growing.
February 18, 2009 at 10:34 AM
Hi Suresh,
Perfectly said. It is these values that define how rich or how poor you are. However i also feel the following determines how you get there.
The world is divided into 4 major cash flow Quadrants (I would call them MINDSETS).
Employees (E)
Self Employed (SE)
Big Business Owners (BBO)
Investors (I)
Employees - They work for either the BBO, SE or the Venture Capitalist for a guaranteed amount of money every month. They stop working the money stops flowing. These people are governed by their Boss's or Employers @ work. They can be Hired and Fired any time. NO JOB GUARANTEE ! (other than in case of a contract). If they die the job is not given to a family member. Only a fixed amount is paid to the family which we call insurance. But if they have a loan the family is liable to pay from their nose. So in this case they live on a day to day basis.
They have 24hrs in a day.
Core Value - I'm looking for a safe secured Job with Benefits (Please revert if you have come across a SAFE SECURE JOB yet, I feel its just a MYTH). They Work for Money
Type of Income - ACTIVE (You work you get paid. You don't work, you get nothing).
Taxes - Collectively they pay more taxes as compared to the rich.
Self Employed - They've had enough of their Boss or Employer. They feel if any job needs to be done they are the BEST Person to do it. You'll find people who like to work as SOLO Entreprenuers in this group. However they would be assisted by people who are not smarter than them. Why not smarter ? Only because the SE fear that the smarter will either takeover his business or will learn from him and go out and become his competetor. Unfortunately, even in this case just like the E's, The money stops the day you stop going to work. As you are SELF - EMPLOYED. You would not want to keep paying someone a salary when he or she doesn't turn up for work. In this senario one would force their children to join their business as it will not and cannot run without one being employed (I didn't prefix Self here as it really doesn't matter.Utimately you have to go to work everyday). Any loans taken to start the business have to be paid back to the bank. Whether your co. is in loss or you died before you could repay. Worst being there is worst competetion anyways between firms in this Quadrant. Too many small firms but very limited Big Co's.
They also have 24 hours in a day.
Core Value - If you want it done right, do it by yourself.They Work for Money.
Type of Income - ACTIVE (You work you get paid. You don't work, you get nothing)
Taxes - Comparitively lesser than the Employeed but still more than the rich.
Big Business Owners - We've all heard a MYTH - "The RICH were born with a Silver Spoon". Here I would like to clarify this MYTH.
"Not all Big Business Owners had all the money to start Big Businesses. People like Narayana Murthy, Bill Gates & Dhirubhai started in a Garage or with less than a 1000 bucks and built fortunes".
Now, how did they do this amazing feat ! Well its something you and me can also do. But before we attempt such a feat we need to learn and understand the secret behind it.
The Secret is "Leverage". Yes, they understood and successfully implimented this secret.
Now, what is Leverage ? In school we learnt that by shifting the base under a lever to the right spot, we could lift much more weight with a lower effort. Using the same logic, these great men understood that by hiring more smarter and intelligent people (than them) in key positions in their organization, they could get their work done in a more efficient way with more profits for themselves.
To put it in simple words - They prefered 1% effort from 100 people(Employees) rather than 100% of their own efforts.
They knew that not many today would dare to dream or think big and out of the box. They knew that out of a hundred thousand new graduates who passout every year hardly one would understand this Secret.
And in most cases that one would be from their own family :-). These great men understood that wealth is not living a compromised life with what your job pays you but True Wealth was having all the MONEY you need with all the TIME to spend it. Wealth for these great men also meant a Legacy that they could leave for their generations to come.
Now here comes my favorite part. They don't have 24hours in a day. They have much much much more than that. How ? Simple. Lets say there are 10,000 employees working for Microsoft worldwide, and each employee works for 8 Hours a day (a Myth again).
So now Bill has 10,000 x 8 hrs = 80,000 hours in ONE DAY ! So that explains why Bill Gates is still the richest even after he has retired and donated a major part of his wealth.
This is what I meant when I said "TIME = MONEY". More the time you leverage more the money you earn.
Core Value - They look for a Good System, a Good Network(of employees) and the Smartest to run their Business. They don't want to run the Business. They Manage only the CEO's. The EMPLOYEE's and The Self Employed work for them.
Type of income - Passive (You don't have to go to work everyday. Instead, You employee smarter people to run the Co for you).
Taxes - They donate huge money for charity or in some cases have a NGO as a part of their own Co to avoid Heavy Taxes,apart from other ways.
Investors - These people are none other than The Big Business Owners who have accumilated huge money that they invest in new ventures/aquisitions/mergers.
TIME IS MONEY. It is these people who understand it, impliment it and preach it. The rest, just listen and do NOTHING ABOUT IT.
Core Value - MONEY WORKS FOR THEM !
Type of income - Passive (They don't have to go to work everyday. Instead, their hire smarter people to run their Co).
Taxes - The Govt can't afford to tax them huge. These people run the ECONOMY of the Country.
Now, Which QUADRANT DO YOU WANT TO BE IN ?
EMPLOYEE
SELF-EMPLOYED
BIG BUSINESS OWNER
INVESTOR
Today, you make the choice where you want to be.
Regards,
Chakradhari.Rowe
Wealth Consultant, Networker & Life Coach.
Tigers Inc.
Bangalore
Cell - (+91) 9972522507, (+91) 9241722139
e-mail - coachcd1@gmail.com,
chakradhari.rowe@gmail.com
Money isn't the key to Happiness. But the more you have the easier it is to get the key made. - Wise Men.