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15 Differences in Mentality Between Rich And Poor People

Building financial security is as much to do with mentality as it is to do with business intelligence. Sure, there are some people who have a big advantage due to a “small loan of a million dollars”. Saying that. there are some who come from nothing and manage to reach success.

Luck can play a part, but more often than not it comes down to habits.

1) Thoughts on the future

With humans living longer, saving is more important than ever. People who make bad monetary choices tend to think about the now. They just want to have fun. “You can’t take it with you” is the motto of such people.

As you know, life isn’t always brilliant. There are a lot of pitfalls. Money doesn’t bring happiness, but it is the solution to many problems.

People who save and invest aren’t greedy. They simply realise that it is important to have money set aside should things go wrong. If you don’t have the money to ride through the storms of life, you have no choice than to borrow. In the end, you end up in a hamster wheel of debt repayments.

Financially responsible people know that cash can get them out of tight situations.

2) Living above one’s means

Humans want what they can’t have. We desire respect and acceptance.

Big brands take advantage of this. They pay celebrities large sums to use products in the hope that we will want the same things.

A close friend recently went through some financial troubles. He made good money. However, his family’s spending habits meat that he was always in debt. I sat with him and looked through his monthly outgoings, and helped him to cancel some unnecessary monthly costs.

Then we got to his car loan repayments…

He took out loans on two sports cars – one for his wife and the other for himself. The monthly repayments were insanely high and at an unusually high-interest rate. Downsizing to a durable and more affordable car would have saved him a lot of money.

I suggested downsizing, and he looked at me as if I had just dropkicked his mother in the throat. “But we NEED them.”

He works very hard, but he basically works for the cars. Vehicles aren’t a good investment because they lose value as soon as you drive out of the dealership.

People who live above their means trade in short-term luxury for long-term discomfort.

I have close friends who I wouldn’t describe as rich, but they are incredibly good at making their money stretch. They set aside money each month and invest it. You won’t see them driving luxury vehicles, but money isn’t a problem for them. Most importantly, they have a growing stash of cash which enables them to take care of life’s emergencies.

3) Drive and ambition

I know that I am going to get some slack for this, but it is true. Most long-term poor people don’t have goals and are basically happy living paycheck-to-paycheck.

We live in a country filled with opportunities. There are a lot of educational opportunities. Plus, the internet enables us to gain a lot of knowledge from the comfort of our homes. We can reach millions and build online businesses with little investment.

However, people with a poverty mentality would rather trade their time watching television, playing video games and partying.

They feel as if they can’t change their situation; therefore, they don’t even try.

On the other hand, people with good financial habits take actions to improve their financial situation. Instead of watching television all day, they use that time to help their children with homework. They are incredibly strategic with investments and knowledge and stay open to new opportunities.

Such people understand that by uplifting those around them, they can build a strong network in the future. Furthermore, they understand that time is currency. Therefore, they spend it on profitable activities.

4) Complaining vs finding a solution

Complaining rarely works. The ones who pull ahead take action.

Life isn’t designed to be fair. Some people are born with a head start while others use loopholes to pull ahead. Complaining and blaming your life on others doesn’t help.

That time and energy are better spent creating a plan and executing.

5) Love the idea of wealth but hate the hard work involved

An astounding 45 million people participate in the national lottery each year.

Most people love the idea of financial security but hate hard work.

The dangerous part is when they buy things outside their financial means. Most people hate the idea of living within their means- even though it is the smart thing to do.

Some of the wealthiest people I know dress ‘poor’ and drive cars you wouldn’t give a second glance. This is because they don’t care about whether others think they are rich. In fact, they would rather blend in.

Most people with good financial habits focus on growing their emergency and investment funds.

6) Understand the importance of teamwork and keeping wealth within the family

Some wealthy people can come across as being very snobbish or greedy. However, it is because they understand the importance of teamwork.

If the people around you have the same wealth-building mindset, you are more likely to become wealthy. Keeping the money within the family ensures that you can make strategic moves together.

This also allows you to make good investments together.

Higher savings means bigger investments.

7) Take big, calculated risks

You need to be slightly crazy in order to become an entrepreneur. Stress levels are high and after putting in a lot of hard work, there is a high risk of failure. Most businesses fail, and it is rare for a business to survive for more than 10 years in the U.K.

Entrepreneurs work crazy hours and put in a lot of money. Some lose their partners or put a lot of strain on their family. They could do just get a “normal job” but the drive for more keeps them going.

They place everything on the line in the hopes of a big payoff.

Your boss won’t make you wealthy.

Without an entrepreneurial spirit, you are simply working for a paycheck. And with the rapidly changing world of work, “job security” is rapidly becoming a myth.

The internet empowers us to have the standard 9-to-5 while also building a side hustle on the side. It isn’t easy but possible with consistency and hard work. Anyone who tells you likewise is just trying to take your money for a course, eBook etc.

8) Respect money

Money is a tool which can be used to build wealth. Therefore, after taking care of the essentials, people with a wealth mindset tend to look towards investments and savings.

On the other hand, people with a poverty mindset prefer to “live it up”. In the end, they have a lot of things and experiences, but very few assets.

People who are careful money are sometimes called “greedy” or “selfish”. However, this is far from the case. They are merely looking towards the future and ensuring that their money works hard at bringing them even more money.

9) Leverage

I was talking to a property developer a few years ago. He started off with £30,000 cash and was able to turn it into a multi-million-pound property. Naturally, I was keen to hear what he had to say,

He said something which I will never forget: “You need a way of leveraging other people’s time and resources in order to enrich yourself. Anyone who seeks wealth, but fails to do this is simply exchanging their time for money. They will become an employee in their own business.”

There are only 24 hours in a day. By using other people’s time and resources, you are able to push past your limits. As a result, others will work hard at making you money while you relax, strategise, etc.

One key skill is getting people and assets to work together in order to enrich yourself.

Remember that money is important, but so is satisfaction. The ideal situation is to have both these parts working hand-in-hand.

On the other hand, people with a broke mindset believe that each hour of their life has a specific value. Therefore, they get angry when they see entrepreneurs and sports people making millions. It doesn’t seem fair.

Notably, most top-earning sports people, entrepreneurs and celebrities have determination and grit which few possess. They are able to handle failures and rejections which would break most people. Moreover, they have found a way to leverage their time, and build a team to grow their fame and wealth.

10) Push through fear

Fear can be crippling. Have you ever had a great idea, and given yourself so many reasons why it won’t work.

We think about what society thinks of us, the embarrassment of failure, how much time it will take etc. As a result of these fears, most people retreat to the safety of doing nothing.

We are designed to always choose the ‘safe’ option. This dates all the way back to the ‘hunter-gatherer’ days of mankind. Moving away from your community, or taking big risks could get a person eaten by a wild animal. Therefore, it was wiser to be safe.

We have moved on from needing to wrestle animals or hunt for food. However, the need to take the safest option still remains.

Whenever you feel afraid to take a massive step, just remember that it is built-in.

Wealth minded people are able to push past the fear and push on.

11) Wealth driven people spot opportunities and respond accordingly

People with a wealth mindset see opportunities where others can’t. More importantly, they respond quickly in order to capitalise on it.

Anyone can come up with a great idea but few have the bravery to execute.

Rewards come through actions and not just through thinking.

12) Always learning

This follows on from the point above. Knowledge makes it easier to spot opportunities.

The world is constantly changing, and those who fail to keep up will be left behind. For instance, during the ‘dot-com boom’ people who understood the internet found themselves with many opportunities and became wealthy.

We are moving towards a world where internet and automation will become increasingly important. Those who capitalise on this trend stand to make a lot of money. On the other hand, those who refuse to learn will find themselves with limited opportunities.

13) Face problems head on

 

It is easy to blame others for your problems.

We see this behaviour in people who blame their lack of opportunities on immigrants or being raised in poverty.

If there are no opportunities, how come some immigrants are able to capitalise on them?

The bank and utility company don’t care that you were raised in poverty.

Many people were born into abject poverty but were still able to become wealthy.

Blaming others is the cowardly way out.

Wealth minded people believe that they are in control of their destiny. They take full blame when things go wrong. They spot their mistake, correct them and move on.

14) Earning potential

There are many ways of saving money and unlocking funds. However, you can accelerate wealth building by increasing earnings.

Most millionaires have 7 streams of income. They are constantly on the lookout for a new income stream, work hard to get it profitable and then outsource certain tasks. Fortunately, technology makes this process a bit easier.

Don’t just focus on saving money and investing, try to find ways of increasing your net worth.

15) Work hard and work smart

All the tips in this article will mean zero without hard work.

Some people will share this piece, and find it thought-provoking but then do nothing. Motivational speakers are popular because we love to feel motivated. Working hard is another thing altogether.

I have a friend who loves to read motivational books. However, he rarely takes actions on the knowledge.

The hardest thing is to take action when others don’t believe in you.

It is difficult to believe and execute when it feels like there is no one in your corner.

To push forward, you will need to learn how to put your head down and simply work without any excuses… even if that means changing paths.

Do you have it in you?

Final thoughts

I know that some of the tips mentioned will annoy some people.

Sometimes the truth hurts.

If you felt inspired and moved by this post, share it on social media.

I would love to know your thoughts. Feel free to drop it into the comments section below or get in touch. I read and reply to every message.

 

 

Building financial security is as much to do with mentality as it is to do with business intelligence. Sure, there are some people who have a big advantage due to a “small loan of a million dollars”. Saying that. there are some who come from nothing and manage to reach success.

Luck can play a part, but more often than not it comes down to habits.

1) Thoughts on the future

With humans living longer, saving is more important than ever. People who make bad monetary choices tend to think about the now. They just want to have fun. “You can’t take it with you” is the motto of such people.

As you know, life isn’t always brilliant. There are a lot of pitfalls. Money doesn’t bring happiness, but it is the solution to many problems.

People who save and invest aren’t greedy. They simply realise that it is important to have money set aside should things go wrong. If you don’t have the money to ride through the storms of life, you have no choice than to borrow. In the end, you end up in a hamster wheel of debt repayments.

Financially responsible people know that cash can get them out of tight situations.

2) Living above one’s means

Humans want what they can’t have. We desire respect and acceptance.

Big brands take advantage of this. They pay celebrities large sums to use products in the hope that we will want the same things.

A close friend recently went through some financial troubles. He made good money. However, his family’s spending habits meat that he was always in debt. I sat with him and looked through his monthly outgoings, and helped him to cancel some unnecessary monthly costs.

Then we got to his car loan repayments…

He took out loans on two sports cars – one for his wife and the other for himself. The monthly repayments were insanely high and at an unusually high-interest rate. Downsizing to a durable and more affordable car would have saved him a lot of money.

I suggested downsizing, and he looked at me as if I had just dropkicked his mother in the throat. “But we NEED them.”

He works very hard, but he basically works for the cars. Vehicles aren’t a good investment because they lose value as soon as you drive out of the dealership.

People who live above their means trade in short-term luxury for long-term discomfort.

I have close friends who I wouldn’t describe as rich, but they are incredibly good at making their money stretch. They set aside money each month and invest it. You won’t see them driving luxury vehicles, but money isn’t a problem for them. Most importantly, they have a growing stash of cash which enables them to take care of life’s emergencies.

3) Drive and ambition

I know that I am going to get some slack for this, but it is true. Most long-term poor people don’t have goals and are basically happy living paycheck-to-paycheck.

We live in a country filled with opportunities. There are a lot of educational opportunities. Plus, the internet enables us to gain a lot of knowledge from the comfort of our homes. We can reach millions and build online businesses with little investment.

However, people with a poverty mentality would rather trade their time watching television, playing video games and partying.

They feel as if they can’t change their situation; therefore, they don’t even try.

On the other hand, people with good financial habits take actions to improve their financial situation. Instead of watching television all day, they use that time to help their children with homework. They are incredibly strategic with investments and knowledge and stay open to new opportunities.

Such people understand that by uplifting those around them, they can build a strong network in the future. Furthermore, they understand that time is currency. Therefore, they spend it on profitable activities.

4) Complaining vs finding a solution

Complaining rarely works. The ones who pull ahead take action.

Life isn’t designed to be fair. Some people are born with a head start while others use loopholes to pull ahead. Complaining and blaming your life on others doesn’t help.

That time and energy are better spent creating a plan and executing.

5) Love the idea of wealth but hate the hard work involved

An astounding 45 million people participate in the national lottery each year.

Most people love the idea of financial security but hate hard work.

The dangerous part is when they buy things outside their financial means. Most people hate the idea of living within their means- even though it is the smart thing to do.

Some of the wealthiest people I know dresspoor and drive cars you wouldn’t give a second glance. This is because they don’t care about whether others think they are rich. In fact, they would rather blend in.

Most people with good financial habits focus on growing their emergency and investment funds.

6) Understand the importance of teamwork and keeping wealth within the family

Some wealthy people can come across as being very snobbish or greedy. However, it is because they understand the importance of teamwork.

If the people around you have the same wealth-building mindset, you are more likely to become wealthy. Keeping the money within the family ensures that you can make strategic moves together.

This also allows you to make good investments together.

Higher savings means bigger investments.

7) Take big, calculated risks

You need to be slightly crazy in order to become an entrepreneur. Stress levels are high and after putting in a lot of hard work, there is a high risk of failure. Most businesses fail, and it is rare for a business to survive for more than 10 years in the U.K.

Entrepreneurs work crazy hours and put in a lot of money. Some lose their partners or put a lot of strain on their family. They could do just get a “normal job” but the drive for more keeps them going.

They place everything on the line in the hopes of a big payoff.

Your boss won’t make you wealthy.

Without an entrepreneurial spirit, you are simply working for a paycheck. And with the rapidly changing world of work, “job security” is rapidly becoming a myth.

The internet empowers us to have the standard 9-to-5 while also building a side hustle on the side. It isn’t easy but possible with consistency and hard work. Anyone who tells you likewise is just trying to take your money for a course, eBook etc.

8) Respect money

Money is a tool which can be used to build wealth. Therefore, after taking care of the essentials, people with a wealth mindset tend to look towards investments and savings.

On the other hand, people with a poverty mindset prefer to “live it up”. In the end, they have a lot of things and experiences, but very few assets.

People who are careful money are sometimes called “greedy” or “selfish”. However, this is far from the case. They are merely looking towards the future and ensuring that their money works hard at bringing them even more money.

9) Leverage

I was talking to a property developer a few years ago. He started off with £30,000 cash and was able to turn it into a multi-million-pound property. Naturally, I was keen to hear what he had to say,

He said something which I will never forget: “You need a way of leveraging other people’s time and resources in order to enrich yourself. Anyone who seeks wealth, but fails to do this is simply exchanging their time for money. They will become an employee in their own business.”

There are only 24 hours in a day. By using other people’s time and resources, you are able to push past your limits. As a result, others will work hard at making you money while you relax, strategise, etc.

One key skill is getting people and assets to work together in order to enrich yourself.

Remember that money is important, but so is satisfaction. The ideal situation is to have both these parts working hand-in-hand.

On the other hand, people with a broke mindset believe that each hour of their life has a specific value. Therefore, they get angry when they see entrepreneurs and sports people making millions. It doesn’t seem fair.

Notably, most top-earning sports people, entrepreneurs and celebrities have determination and grit which few possess. They are able to handle failures and rejections which would break most people. Moreover, they have found a way to leverage their time, and build a team to grow their fame and wealth.

10) Push through fear

Fear can be crippling. Have you ever had a great idea, and given yourself so many reasons why it won’t work.

We think about what society thinks of us, the embarrassment of failure, how much time it will take etc. As a result of these fears, most people retreat to the safety of doing nothing.

We are designed to always choose the ‘safe’ option. This dates all the way back to the ‘hunter-gatherer’ days of mankind. Moving away from your community, or taking big risks could get a person eaten by a wild animal. Therefore, it was wiser to be safe.

We have moved on from needing to wrestle animals or hunt for food. However, the need to take the safest option still remains.

Whenever you feel afraid to take a massive step, just remember that it is built-in.

Wealth minded people are able to push past the fear and push on.

11) Wealth driven people spot opportunities and respond accordingly

People with a wealth mindset see opportunities where others can’t. More importantly, they respond quickly in order to capitalise on it.

Anyone can come up with a great idea but few have the bravery to execute.

Rewards come through actions and not just through thinking.

12) Always learning

This follows on from the point above. Knowledge makes it easier to spot opportunities.

The world is constantly changing, and those who fail to keep up will be left behind. For instance, during the ‘dot-com boom’ people who understood the internet found themselves with many opportunities and became wealthy.

We are moving towards a world where internet and automation will become increasingly important. Those who capitalise on this trend stand to make a lot of money. On the other hand, those who refuse to learn will find themselves with limited opportunities.

13) Face problems head on

 

It is easy to blame others for your problems.

We see this behaviour in people who blame their lack of opportunities on immigrants or being raised in poverty.

If there are no opportunities, how come some immigrants are able to capitalise on them?

The bank and utility company don’t care that you were raised in poverty.

Many people were born into abject poverty but were still able to become wealthy.

Blaming others is the cowardly way out.

Wealth minded people believe that they are in control of their destiny. They take full blame when things go wrong. They spot their mistake, correct them and move on.

14) Earning potential

There are many ways of saving money and unlocking funds. However, you can accelerate wealth building by increasing earnings.

Most millionaires have 7 streams of income. They are constantly on the lookout for a new income stream, work hard to get it profitable and then outsource certain tasks. Fortunately, technology makes this process a bit easier.

Don’t just focus on saving money and investing, try to find ways of increasing your net worth.

15) Work hard and work smart

All the tips in this article will mean zero without hard work.

Some people will share this piece, and find it thought-provoking but then do nothing. Motivational speakers are popular because we love to feel motivated. Working hard is another thing altogether.

I have a friend who loves to read motivational books. However, he rarely takes actions on the knowledge.

The hardest thing is to take action when others don’t believe in you.

It is difficult to believe and execute when it feels like there is no one in your corner.

To push forward, you will need to learn how to put your head down and simply work without any excuses.. even if that means changing paths.

Do you have it in you?

Final thoughts

I know that some of the tips mentioned will annoy some people.

Sometimes the truth hurts.

If you felt inspired and moved by this post, share it on social media.

I would love to know your thoughts. Feel free to drop it into the comments section below or get in touch. I read and reply to every message.

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