Based on "How Rich People Think" by Steve Siebold, article from Business Insider by Mandi Woodruff.
According to the author, it is all about how rich people think and their mentality rather than money. Recently the australian billionaire Gina Rinehart resulted a firestorm on a similar discussion.
- Average people (AP) think MONEY is the root of all evil. Rich people (RP) believe POVERTY is the root cause. AP have been brainwashed to believe RP are lucky or dishonest.
- AP think selfishness is a vice. RP think selfishness is a virtue. Reality is if you are not taking care of you, you are not in a position to help anyone else.
- AP have a lottery mentality. RP have an action mentality. While the masses are waiting to pick the right numbers and praying for prosperity, the great ones are solving problems.
- AP think the road to riches is paved with formal education. RP believe in acquiring specific knowledge.
- AP long for the good old days. RP dream of the future. People who believe their best days are behind them rarely get rich, and often struggle with unhappiness and depression.
- AP see money through emotion. RP 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. The great ones know money is a critical tool that presents options and opportunities.
- AP earn money by doing things they don't love. RP follow their passion.
- AP set low expectations so they're never disappointed. RP are up for the challenge.
- AP believe you have to DO something to get rich. RP believe you have to BE something to get rich. While the masses are fixated on the doing and the immediate results of their actions, the great ones are learning and growing from every experiences, whether success or failure, knowing their true reward is becoming a human success machine that eventually produces outstanding results.
- AP believe you need money to make money. RP use other people's money. RP know not being solvent enough to personally afford something is not relevant. The real qn is 'Is this worth buying, investing in, or pursuing ?'
- AP believe markets are driven by logic and strategy. RP 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. This knowledge of human nature and its overlapping impact on trading give them strategic advantage in building greater wealth through leverage.
- AP live beyond their means. RP live below theirs. Here is how to live below your means and tap into the secret wealthy people have used for centuries - Ger rich so you can afford to. The rich live below their means, not because they're so savy, 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.
- AP teach their children how to survive. RP teach their kids how to get rich. RP teach their kids from an early age about the world of "haves" and "have-nots". People say parents are teaching their kids to look down on the masses because they're poor. This isn't true. What they're teaching their kids is to see the world through the eyes of objective reality -the way society really is.
- AP let money stress them out. RP find peace of mind in wealth. The middle class sees money as a never-ending necessary evil that must be endured as part of life. The world class sees it as the liberator, and with enough of it, they are able to purchase financial peace of mind.
- AP would rather be entertained than educated. RP would rather be educated than entertained. Rich don't put much stock in furthering wealth through formal education, they appreciate the power of learning long after college is over.
- AP think RP are snobs. RP just want to surround themselves with like-minded people. Labeling the RP as snobs is another way the middle class finds to feel better about themselves and their chosen path of mediocrity.
- AP focus on saving. RP focus on earning.
- AP play it safe with money. RP know when to take risks. Leverage is the watchword of the rich. Every investor loses money on occasion, but the world class knows no matter what happens, they will always be able to earn more.
- AP love to be comfortable. RP find comfort in uncertainty. World class thinkers learn early on that becoming 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. For the most part, it takes guts to take the risks necessary to make it as a millionaire - a challenge.
- AP never make the connection between money and health. RP know money can save their life. RP pay a substantial yearly membership free for 'boutique medical care' that guarantees them 24-hr access to private physician who only serves a small group of members.
- AP believe they must choose between a great family and being rich. RP know you can have it all. The idea the wealth must come at the expense of family time is nothing but a 'cop-out'. The masses have been brainwashed to believe it's an either/or equation. The rich know you can anything you want if you approach the challenge with a mindset rooted in love and abundance.
Glossary:
AP- Average People
RP- Rich People
AP- Average People
RP- Rich People
