21 Ways Rich People Think Differently
By Mandi Woodruff
World's richest woman Gina Rinehart is enduring a
media firestorm over an article in which she takes
the "jealous" middle class to task for "drinking, or
smoking and socializing" rather than working to
earn their own fortune.
What if she has a point?
Steve Siebold, author of "How Rich People Think,"
spent nearly three decades interviewing millionaires
around the world to find out what separates them
from everyone else.
It had little to do with money itself, he told Business
Insider. It was about their mentality.
"[The middle class] tells people to be happy with
what they have," he said. "And on the whole, most
people are steeped in fear when it comes to
money."
1. Average people think MONEY is the root of all
evil. Rich people believe POVERTY is the root of all
evil.
"The average person has been brainwashed to
believe rich people are lucky or dishonest," Siebold
writes.
That's why there's a certain shame that comes
along with "getting rich" in lower-income
communities.
"The world class knows that while having money
doesn't guarantee happiness, it does make your life
easier and more enjoyable."
2. Average people think selfishness is a vice. Rich
people think selfishness is a virtue.
"The rich go out there and try to make themselves
happy. They don't try to pretend to save the world,"
Siebold told Business Insider.
The problem is that middle class people see that as
a negative––and it's keeping them poor, he writes.
"If you're not taking care of you, you're not in a
position to help anyone else. You can't give what
you don't have."
3. Average people have a lottery mentality. Rich
people have an action mentality.
"While the masses are waiting to pick the right
numbers and praying for prosperity, the great ones
are solving problems," Siebold writes.
"The hero [middle class people] are waiting for may
be God, government, their boss or their spouse. It's
the average person's level of thinking that breeds
this approach to life and living while the clock
keeps ticking away."
4. Average people think the road to riches is paved
with formal education. Rich people believe in
acquiring specific knowledge.
"Many world-class performers have little formal
education, and have amassed their wealth through
the acquisition and subsequent sale of specific
knowledge," he writes.
"Meanwhile, the masses are convinced that
master's degrees and doctorates are the way to
wealth, mostly because they are trapped in the
linear line of thought that holds them back from
higher levels of consciousness...The wealthy aren't
interested in the means, only the end."
5. Average people long for the good old days. Rich
people dream of the future.
"Self-made millionaires get rich because they're
willing to bet on themselves and project their
dreams, goals and ideas into an unknown future,"
Siebold writes.
"People who believe their best days are behind
them rarely get rich, and often struggle with
unhappiness and depression."
6. Average people see money through the eyes of
emotion. Rich people think about money logically.
"An ordinarily smart, well-educated and otherwise
successful person can be instantly transformed into
a fear-based, scarcity driven thinker whose
greatest financial aspiration is to retire
comfortably," he writes.
"The world class sees money for what it is and
what it's not, through the eyes of logic. The great
ones know money is a critical tool that presents
options and opportunities."
7. Average people earn money doing things they
don't love. Rich people follow their passion.
"To the average person, it looks like the rich are
working all the time," Siebold says. "But one of the
smartest strategies of the world class is doing what
they love and finding a way to get paid for it."
On the other hand, middle class take jobs they don't
enjoy "because they need the money and they've
been trained in school and conditioned by society to
live in a linear thinking world that equates earning
money with physical or mental effort."
8. Average people set low expectations so they're
never disappointed. Rich people are up for the
challenge.
"Psychologists and other mental health experts
often advise people to set low expectations for their
life to ensure they are not disappointed," Siebold
writes.
"No one would ever strike it rich and live their
dreams without huge expectations."
9. Average people believe you have to DO
something to get rich. Rich people believe you have
to BE something to get rich.
"That's why people like Donald Trump go from
millionaire to nine billion dollars in debt and come
back richer than ever," he writes.
"While the masses are fixated on the doing and the
immediate results of their actions, the great ones
are learning and growing from every experience,
whether it's a success or a failure, knowing their
true reward is becoming a human success machine
that eventually produces outstanding results."
10. Average people believe you need money to
make money. Rich people use other people's
money.
Linear thought might tell people to make money in
order to earn more, but Siebold says the rich aren't
afraid to fund their future from other people's
pockets.
"Rich people know not being solvent enough to
personally afford something is not relevant. The real
question is, 'Is this worth buying, investing in, or
pursuing?'" he writes.
11. Average people believe the markets are driven
by logic and strategy. Rich people know they're
driven by emotion and greed.
Investing successfully in the stock market isn't just
about a fancy math formula.
"The rich know that the primary emotions that drive
financial markets are fear and greed, and they
factor this into all trades and trends they observe,"
Siebold writes.
"This knowledge of human nature and its
overlapping impact on trading give them strategic
advantage in building greater wealth through
leverage."
12. Average people live beyond their means. Rich
people live below theirs.
"Here's how to live below your means and tap into
the secret wealthy people have used for centuries:
Get rich so you can afford to," he writes.
"The rich live below their means, not because
they're so savvy, but because they make so much
money that they can afford to live like royalty while
still having a king's ransom socked away for the
future."
13. Average people teach their children how to
survive. Rich people teach their kids to get rich.
Rich parents teach their kids from an early age
about the world of "haves" and "have-nots,"
Siebold says. Even he admits many people have
argued that he's supporting the idea of elitism.
He disagrees.
"[People] say parents are teaching their kids to look
down on the masses because they're poor. This
isn't true," he writes. "What they're teaching their
kids is to see the world through the eyes of
objective reality––the way society really is."
If children understand wealth early on, they'll be
more likely to strive for it later in life.
14. Average people let money stress them out. Rich
people find peace of mind in wealth.
The reason wealthy people earn more wealth is that
they're not afraid to admit that money can solve
most problems, Siebold says.
"[The middle class] sees money as a never-ending
necessary evil that must be endured as part of life.
The world class sees money as the great liberator,
and with enough of it, they are able to purchase
financial peace of mind."
15. Average people would rather be entertained than
educated. Rich people would rather be educated
than entertained.
While the rich don't put much stock in furthering
wealth through formal education, they appreciate
the power of learning long after college is over,
Siebold says.
"Walk into a wealthy person's home and one of the
first things you'll see is an extensive library of
books they've used to educate themselves on how
to become more successful," he writes.
"The middle class reads novels, tabloids and
entertainment magazines."
16. Average people think rich people are snobs.
Rich people just want to surround themselves with
like-minded people.
The negative money mentality poisoning the middle
class is what keeps the rich hanging out with the
rich, he says.
"[Rich people] can't afford the messages of doom
and gloom," he writes. "This is often misinterpreted
by the masses as snobbery.
Labeling the world class as snobs is another way
the middle class finds to feel better bout themselves
and their chosen path of mediocrity."
17. Average people focus on saving. Rich people
focus on earning.
Siebold theorizes that the wealthy focus on what
they'll gain by taking risks, rather than how to save
what they have.
"The masses are so focused on clipping coupons
and living frugally they miss major opportunities,"
he writes.
"Even in the midst of a cash flow crisis, the rich
reject the nickle and dime thinking of the masses.
They are the masters of focusing their mental
energy where it belongs: on the big money."
18. Average people play it safe with money . Rich
people know when to take risks.
"Leverage is the watchword of the rich," Siebold
writes.
"Every investor loses money on occasion, but the
world class knows no matter what happens, they
will aways be able to earn more."
19. Average people love to be comfortable. Rich
people find comfort in uncertainty.
For the most part, it takes guts to take the risks
necessary to make it as a millionaire––a challenge
most middle class thinkers aren't comfortable living
with.
"Physical, psychological, and emotional comfort is
the primary goal of the middle class mindset,"
Siebold writes.
World class thinkers learn early on that becoming a
millionaire isn't easy and the need for comfort can
be devastating. They learn to be comfortable while
operating in a state of ongoing uncertainty."
20. Average people never make the connection
between money and health. Rich people know
money can save your life.
While the middle class squabbles over the virtues of
Obamacare and their company's health plan, the
super wealthy are enrolled in a super elite "boutique
medical care" association, Siebold says.
"They pay a substantial yearly membership fee that
guarantees them 24-hour access to a private
physician who only serves a small group of
members," he writes.
"Some wealthy neighborhoods have implemented
this strategy and even require the physician to live
in the neighborhood."
21. Average people believe they must choose
between a great family and being rich. Rich people
know you can have it all.
The idea the wealth must come at the expense of
family time is nothing but a "cop-out", Siebold says.
"The masses have been brainwashed to believe it's
an either/or equation," he writes. "The rich know
you can have anything you want if you approach
the challenge with a mindset rooted in love and
abundance."
From Steve Siebold, author of "How Rich People
Think."
http://finance.yahoo.com/news/21-ways-rich-
people-think-differently.html?page=2
No comments:
Post a Comment