One of the reasons some people are rich and increase their wealth, while others are poor and do not, is the different thinking of these people. Just imagine that 3% of the rich own 96% of the world’s wealth, and 96% of people share the remaining 4% of the resources! Why is this happening, and what can be done to get out of most people?
The question lies in mentality or the so-called mindset and way of thinking. Here are 5 things that differentiate the poor from the rich.
Security and freedom
Let’s divide people into poor and rich for our story. Let’s start with the poor. Their thinking is focused on making every area of life as safe as possible: at work, in communication, and in behavior. These people are focused on saving as much money as possible, saving it and not wasting it, and the deferred banknotes lose their value over time due to inflation, which mercilessly devours them.
Well, how can you expect some achievement, leading such a cautious lifestyle? Security can be compromised at any time, even at the most seemingly calm work. You can put your signature in the wrong place, get injured, or, in general, the company in which you work may suddenly go bankrupt. Relationships cannot guarantee complete peace of mind because you will never know what is happening in another person’s head.
If we talk about rich people, they are not afraid to take risks and put everything they have on the line. Many of them more than once lost their fortune but then rose to their feet and became much richer than before. Every day they live like their last, receiving maximum emotions; they understand that life is a very unpredictable thing to put off until tomorrow.
What is financial freedom for us? This is a planned budget with room to pamper yourself. For these people, it is an opportunity to manage their finances as they please, without planning to buy a new pair of pants two months in advance. Nothing in our life can be predicted, so sometimes it is better to take a risk and not think about what will happen in case of defeat, rather than sit and regret that you did not take a risk at a certain moment in life.
Understanding the difference between money and wealth
People with low incomes are always focused on making money; for them, the currency is the main indicator of wealth. The problem is that money is a piece of paper that loses its value over time. Poor people do not believe in investing, in the fact that investments can bring income over time. These persons are aimed at saving, saving, and again saving shekels, satisfying the inner Jew. Saving is the biggest and most decisive factor that guides them in life, and taking risks and investing money somewhere is not an occupation for these guys.
On the other hand, Rich people work to create wealth, not money, and always invest in intellectual or material things. What is the difference between money and wealth? Money is just a physical currency that depreciates over time and does not represent much value. Wealth is something that is passed down from generation to generation and does not lose its value. For example, 4,000,000 in a bank account is money, and owning a 4,000,000 home is wealth because its value will not fall over time.
Fast results and instant pleasure
Getting a quick, one might say, momentary result from your activities is what the poor people are focused on. They want to make more and more money without a clear plan of action and purpose for what they need finance. They cannot plant the seeds of their efforts today and wait as long as it takes for that seed to grow into a result that will bring income. They are only interested in instant income that can meet today’s needs.
People looking for good money prospects are very patient. Of course, they would like a momentary financial flow that will meet all the needs, but they understand that this is impossible. Wealthy people can put off pleasure to multiply it a little later. If you want to be successful in your life, then accept the fact that you will have to wait for some investments to start making a profit. And realize that before you succeed, you will have to suffer more than one defeat.
Use your time or sell it
Today we fall into the trap of selling our time. Society itself teaches us to charge money for the hours we give to someone. But is this the correct position?
The poor are always looking for an opportunity to sell their time more profitably instead of using it for their good. We are taught to work for business owners, not business owners; teach you how to become a good employee, not hire one. In the end, we are taught to work for money, not to have our capital make it.
The correct approach used by those who have achieved success is that selling their services will not make a huge fortune. Instead of investing their own time in the work, they invest other people’s time, paying for their time and labor. The income that employees will bring is many times greater than that which they could earn alone. Free up your time, use it well, and pay others to spend theirs on you.
All of the above factors are very important, but one difference is of paramount importance. The poor are always looking for an answer to the question: how to make more money? How to become successful? How to start doing something new and make money on it? And from others, they hear the following answers: find a new, higher-paying job; go to refresher courses. So we try repeatedly to trade our time, only improving its quality, hoping for instant results and more earnings. Therein lies the problem that it is impossible to leave this vicious cycle that keeps us within a certain income. It would help if you had a true desire to get out of this cycle and get rid of it – this is what distinguishes the mentality of a rich person.
The rich will look for the answer to the question “Why?” It gives a vision of what you need to make money for, spend it on, and where to invest. Then they ask themselves, “How?”: How to use people to make a profit; how to use people with skills and knowledge, namely skilled but poor people? After making plans and finding the right people, the third step follows. It would be best if you were patient, without which there would be no success. After all the tasks are completed, rich people receive both income and wealth, making them independent of money and giving them time freedom.