Have you ever thought about how some people can become incredibly wealthy while others struggle to make ends meet? Does it make you wonder if there's some sort of secret formula to becoming rich that you're missing out on? Well, in this video, I'll share 10 things that rich people do that poor people don't, which often makes the difference between financial success and financial distress.
1) The rich believe in the law of income.
The rich believe that they will be paid in direct proportion to the value they deliver to the marketplace.
In other words, if they are integral in forming a product that nearly everyone in the world wants or needs, then they should be compensated accordingly.
Rich individuals understand that output is the only metric that counts since we live in a results driven world.
Poor people, on the other hand, believe that they should be paid based on the amount of time they put into an activity.
Well, hard work is a factor in success. Increased input does not always equate to more output.
And this can be a sign of inefficiency when Value-Added results are not consistently produced.
Therefore, poor people often missed the mark by solely focusing on inputs instead of outputs.
2) The rich are voracious readers.
Wealthy individuals live by the saying, the more you learn, the more you earn.
And this is often accomplished through reading. Warren Buffett, arguably the world's greatest investor, was once asked about the key to success.
He responded by pointing to a stack of books and answering by reading five hundred pages like this every day. That's how knowledge works. It builds up like compound interest. All of you can do it by guarantee. Not many of you will do it. Warren Buffett is not alone in the club of enthusiastic book readers. Mark Cuban, owner of the Dallas Mavericks, dedicates three hours a day to reading. Bill Gates, the founder of Microsoft, reads 50 books a year, nearly a book a week. And Elon Musk, the creator of Tesla, is an avid reader that claims he learned to build rockets by reading textbooks.
As for the poor, only one in 50 admit to employing self-improvement reading habits on a daily basis and
as a result lack the knowledge to make decisions that will lead them to financial prosperity.
3) The rich focus on opportunities, not obstacles.
There was once a shoe salesman that found himself in a faraway country trying to sell shoes to the natives.
The only problem was No one there wore shoes and the sale was often quite difficult. The salesman soon gave up in frustration and decided to leave the area on his way out.
He met another shoe salesman. Don't bother entering this town, said the first salesman.
These people don't even wear shoes. Eyes are the second salesman who grew wide. No one has shoes.
Then I could sell a pair to everyone in town. How fortunate we are to stumble upon an untapped market.
You see, it's all a matter of perspective. The poor often see obstacles and quickly give up while the rich see opportunities and enter arenas that many wouldn't dream of.
4) The rich associate with positive, successful people.
It's been said that you are the average of the five people you spend the most time with, and rich people
know that your social circle drives your success. This is why individuals spend time with others who enjoy
talking about success opportunities and the positive things in life by doing so. These successful individuals have
a higher chance of optimizing their view of the world by being in good company. as often seen with poor people. they make a little effort to integrate themselves with people who allow them to develop into more successful
versions of themselves. Instead, they would rather be brought down by bad influences, ultimately squandering any chances they would have of improving their financial situation.
5) The rich are willing to promote themselves and their value.
Most rich people have a skill or idea that has brought them their wealth.
As a result, they are not afraid to share their strengths with others.
The sharing of their best attributes is often in an effort to disseminate knowledge and help others grow.
As for the poor, most are not extraordinary in any one thing, and unfortunately,
being average is a precursor to financial mediocrity. Furthermore, the skills these individuals do have are rarely on display. As a lower tier income earners tend to lack the understanding of how important it is to sell yourself when trying to get ahead.
6) The rich grow bigger than their problems.
The poor see problems as obstacles rather than opportunities.
Instead of trying to figure out how to overcome hard times, these individuals succumb to the challenge and
return to the status quo. Conversely, rich people thrive on new challenges. Rich people understand that there is value in creating solutions to problems, which is the basis of many financial success stories.
7) The Rich think “Both” the poor thing “Either Or”.
Economists came up with the term “Opportunity Cost” long ago. Put simply, this means that
if you choose one thing, you are ultimately forgoing something else. In other words, if I have five dollars and I buy a five dollar ice cream cone, then I am giving up that pack of gum that I wanted as well. this is how poor people think too. They have a set amount of money and they think that they can
spend it on either one thing or another, but not both.
It sounds logical, doesn't it? But the rich focus on how they can get both. Following along the same lines as
the example above, Let's give a rich person five dollars. They too want both ice cream and a five dollar pack of gum.
But instead of thinking either or they decide to go for both. To do this, the rich mindset would not buy
the ice cream or the gum initially, but might instead buy a 24 pack of water for five dollars.
They walk down the roadways so each bottle of water to pass their buyers for 50 cents an hour,
a total of twelve dollars. Now they can enjoy their ice cream gum instead of two dollars left to spare.
The rich have a “both” mentality Not “either or”.
8) The rich focus on net worth not working income.
Poor people often talk in terms of hourly pay, whereas wealthy people know that
an hourly income is not nearly as important as someone's net worth.
One can earn quite a lot of money per hour, but if they don't know how to keep it,
then they will still be broke, In the end. The rich person knows that a large net worth will net many opportunities and will create more wealth in the future.
9) The richer are dollar smart.
There's a saying that goes “penny smart, dollar stupid “ and this phrase is practiced by many poor people.
This phrase basically means that some individuals are very particular about how they spend
small amounts of money, like when buying a cup of coffee, but do not make wise decisions with large sums
of cash like investing and self-improvement and education. Rich individuals leverage both strategies by
making disciplined penny decisions while investing large amounts of funds into conferences, paid
mentorship and other activities that will foster continual improvement and financial success.
10) The Rich Network and volunteer regularly.
The rich understand the value in building connections, whether it is making friends or finding potential clients.
Meeting new people only has upside, and this is often facilitated through community involvement activities.
Almost three quarters of wealthy people network and volunteer a minimum of five hours a month. Among those struggling financially, only one in ten does this cause them to miss out on new connections and as importantly, many new opportunities for financial prosperity.
Conclusion,
These 10 things are just some of the factors that set the rich and the poor apart.
And by employing the rich person habits previously outlined, you'll be much better equipped to become wealthy yourself.
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