11 Money Mindset of Rich Person
vemuda.com - We sometimes wonder why the poor keep getting poorer as the rich keep getting richer by the day. Well, I recently found out the reason behind that huge difference. The rich and poor invest differently based on their income. Today you’ll discover how the investment portfolios of the rich and poor differ. Stay tuned.
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Now without any further ado, let's get into it!
It’s amazing how rich people have come to master the art of patience. I get it. They’ve worked for so many years to be that successful, so their patience is a result of that success which did not occur overnight. When they decide to trade, they are keen while doing it and always await the right time to do so.
This is always an added advantage that, most of the time, yields great profits. On the other hand, the poor man prioritizes his immediate needs and works hard to satisfy them.
While this might be considered a wonderful trait at times, it often blinds them from seeing the bigger picture. They neglect to pay attention to future trends, and this causes them to lose many opportunities in the process.
10. Invest in all types of assets
The rich always have their options open to anything that seems profitably promising. Due to their huge bank accounts, they always have the right amount of capital to invest in different fields, like real estate or the stock market. This trick usually yields huge profits because they’ve invested in different sources.
Most of the time, the poor are unfortunate because they lack the necessary capital to invest in profitable businesses like the wealthy. They are frequently preoccupied with what their money can buy and this leaves them with very little to invest.
Sometimes they do have the money to invest in something that’s potentially profitable, but due to their fear of experiencing loss, you’ll find them investing in very few businesses or none at all.
In most cases, when the poor put all their money into one single business they incur the most when losses occur as the rich are still gaining from their various investment sources. This is one reason the gap between the rich and the poor continues to grow each day.
Focusing on yourself has always been the ultimate rule if you want to win. The rich know this all too well since they’re always fixated on their own personal growth as compared to the poor, who always try to compare others' success to their own.
The poor person is always on the constant lookout for who did what and when, which usually makes them forget about their own goals. They always want to do what another person has done since they view them as competition.
The rich do not share this toxic mentality as they are always busy doing what they can for their business without considering everyone as competition.
Yes, viewing people as competition helps you work harder, but if you get lost in those thoughts, you’ll be drifting away from your own goals. That’s certainly not a healthy mindset if one wants one’s business to blossom and thrive.
8. Their focus
Our general life circumstances always force us to adapt to what we think works best for us. This attitude works well at times but the rich and poor act differently.
For example, rich people always focus on their net worth, meaning they’re always thinking about how to double or triple their income. This forces them to work more diligently, and this mindset is definitely the best way to grow each day.
On the other hand, the poor always focus on their weekly wages or work. Most times this is inevitable because of their particular situation. The poor are obligated to think about how they will be able to survive a whole week with very little cash.
Sadly, focusing on weekly wages alone makes it hard for the poor to escape their current circumstances.
When you invest with the right attitude, theirs a high chance that you’ll succeed. Fortunately, the rich person has made this a habit therefore, they always think positively about their business before they even start.
The rich tend to see their success before it even happens, which helps them to stay more focused on what they’re doing. The poor guys, on the other hand, tend to start their businesses with the wrong attitude.
They tend to view everything as an obstacle which results in clouded judgement and an attitude of defeat. The truth is that they fail most of the time, not because their businesses failed, but because they gave up too soon. I mean, no one has ever been guaranteed success in their business.
Most of the time, it’s all about starting with the right attitude and giving it all your devotion.
6. Cash inflow
A poor person is always limited in what they can invest in because of their small capital. There's no doubt that there are so many poor people with the right ideas who’d love to start a very huge business, but due to their financial limitations, they fail to accomplish their dreams.
The rich person has an advantage here because they aren’t limited by the amount of capital required. The rich are capable of starting a business whenever they want, regardless of how much money they have.
This is because the rich have the ability to borrow money to start a business, while the poor don’t have access to such privileges.
Many banks always require you to have some assets before you can apply for a loan. From a poor person’s perspective, it won’t be possible because they don’t have enough assets.
5. Invest small
Not many rich people sit down to talk
about how they first started working their way up. The truth is that they too started small by saving the most minute amounts they had to spare.
Unfortunately, the poor tend to forget that saving a small amount each day will eventually pile up to a reasonable amount that can help them to start an enterprise of their liking. They tend to think that the amount of money they have is too small, so they choose to spend it all.
Well, that’s not how rich people think. Despite their riches, they always make sure that they use every single cent to the best of their ability.
This means that if they have no use for the money at the moment, they’d rather save it for future purposes. If the poor person starts thinking this way, I’m sure they’ll be better off with time.
When we see a rich person buying expensive cars, beautiful houses, and going on expensive vacations, we tend to think that they got there by simply investing in very profitable businesses like real estate.
That’s where we’re wrong. The rich definitely got there because of their knowledge of how the world works. If you ask any rich person right now, they’ll tell you that their success wasn’t out of mere hope and luck but because they carefully thought it through.
It’s understandable that many poor people do not have money to go to school, but it doesn’t take a school to be rich. I know a couple of guys who left school and still turned out richer than I am.
The poor usually tend to think of themselves as victims, which often makes them feel even worse about themselves. Most of the time, they stay cut off from the world by isolating themselves from other people.
Well, this is where they are missing out. You don’t need to go to school to acquire knowledge; instead, you can just watch the news and get to know the trends.
Staying on track with the current times is a good way to get more life ideas. The biggest economic muscle you have is your mind.
3. Saving strategy
A rich person always has a plan for their money. I would too, because I can’t imagine how devastating it would be if I failed to plan well and ended up broke.
For that reason, the rich always plan their money effectively and ensure they have saved enough for a rainy day. You’ll find the rich have opened up savings accounts or other saving schemes just so they're not spending all their money.
Sadly, a poor person is never privileged enough to have such an opportunity because of the small amount of money they make.
This is somewhat understandable but although it can be difficult to save, I think that every wise person knows that they need to save at least a penny on anything they earn. If the poor person does this, they’ll have some money saved up.
2. Their solution mindset
Where problems are involved,
the rich and poor always think differently. Rich people invest their time and effort in planning and strategizing solutions to problems that arise as well as in developing mechanisms to prevent similar issues from happening in the future.
This always helps them fix their issues quickly so they can get back to business as soon as they can. On the other hand, the poor tend to think that every problem that comes their way is an indication that their venture has failed.
This mentality frequently causes them to abandon what they were working on, leaving them in a stagnant financial situation for a longer period of time than they anticipated. In most cases, some don’t even think about giving it another try.
In fact, you’ll find them on the front row talking to their peers about how devastating their business was and they end up discouraging those who have not tried.
1. The effort put in
If one day you take a walk on an idle street, I’m sure you’ll hear something like, "God will show us the way." Words like these are only good for providing temporary hope but they are not what will help you out in the long run.
Most rich guys believe that their success is dictated by the hard work they put in. This is undoubtedly true because the more effort you put in, the more productive you become.
However, this is the exact opposite of what the poor think. Most poor guys always sit and hope that someone will come out of the blue and offer them a handout.
They never put any effort into what they do, and if they do put some effort, they give up easily. I mean, after a little work, they tend to give up, claiming they’re tired.
Honestly, the poor person is forgetting that the rich also did everything they had to in order to get there and that they also have to do the same.
Generally, the huge difference between the poor and the rich comes down to their mindset. Personally, I believe that we’re capable of escaping any negative financial situation.
All it takes is effort and the right mindset. I believe the rich-poor gap can be closed if we all work with the right intentions. So let’s go and get it done!
Well guys thank you so much for reading today's post. if you found value in today's post. With that said, have a great day and see you in the next one.