These are the massive differences between a rich mindset and a poor mindset.
Different characteristics can determine your wealth. Some studies have revealed how wealthy people think differently. If you’re interested in becoming rich there are things you can do to reach that goal.
While these differences don’t describe everyone in the two groups, they are correct often enough to merit attention. Whether or not you’re born wealthy, you can improve your income by changing how you think.
13 Ways to Achieve a Rich Mindset
Keep reading to learn about the rich mindset vs. the poor mindset. Here are the differences you need to know!
1. Rich People Invest and Poor People Put Money Into Savings Accounts
Rich people aren’t concerned with the cost of investing, they’re focused on the potential upside.
This is because they know they need to multiply their money. They also known there are proven investment tools they can learn about to do it. They don’t have to re-invent the wheel.
In contrast, poor people focused on the risks involved and end up throwing money into a savings account where they think it is “safe.” Unfortunately, these accounts don’t rack up as much money as people think, and some can charge you for your savings.
They also let your money to decay in value at the rate of inflation (about 2-3% per year).
Invest like the rich by putting your money into income-producing assets, instead of savings accounts.
2. Rich People Continually Learn and Poor People Stop Learning
Millionaires use their time wisely, and that includes increasing their knowledge daily.
Poor people tend to stop trying to learn new things after they leave school, which can hold them back from higher-paying careers and opportunities.
If you want to increase your income, utilize an hour or more every day to increase your knowledge. As Warren Buffet says, “Learn more to earn more.”
3. Rich People Refuse to Be Poor and Poor People Let Excuses Hold Them Back
Rich people will do everything they can to never be poor. In contrast, poor people let excuses hold them back and stay stuck in a never-ending cycle.
Just because you were born poor, doesn’t mean you have to remain that way. As Warren Buffet says, “If you are born poor it’s not your fault. But if you die poor it’s your fault.”
You can break the cycle with determination and by creating new productive habits.
4. Rich People Have a Plan of Action and Poor People Hope
Rich people think logically and strategically when chasing their goals.
In contrast, poor people see being rich as a fantasy they’ll never obtain. No matter how hard they wish, they’ll never reach their goals without a solid plan of action.
You can change your way of thinking by planning to be rich and executing a plan to reach your dream.
If your life depended on it, could you increase your income by $50K per year? The answer is probably yes, which means it is not circumstances but action that is holding you back.
5. Rich People Think Long-Term and Poor People Think Short-Term
Rich people will think a lot about their long-term goals and future.
In contrast, poor people tend to think about the now, thinking short-term. This can be a common way of life for those living paycheck to paycheck.
When you’re planning your steps to get rich, consider thinking about years down the road too.
On average, most rich people work doggedly for 5-10 years before beginning to achieve their goals. Do you have this level of determination?
6. Rich People are Clear with Their Goals and Poor People Don’t Know What They Want
Rich people have a planned route to reach their goals.
Poor people don’t have clear goals, only things they know they don’t want. By focusing on the negative, there’s not much room for positive thinking and planning.
Don’t let obstacles push you off your path, stay focused on your goal and flexible with your tactics.
7. Rich People Take on Challenges and Poor People Won’t Leave Comfort Zones
Rich people understand there will be challenges on the way up, but they don’t let it scare them from climbing.
Poor people are afraid to leave their comfort zones behind in search of a better life. Whether or not you’re intending to, avoiding challenges will keep you stuck in the same way of thinking and lifestyle.
Don’t be afraid of the challenges. You must understand they come with the territory and keep going.
Remember, there is no such thing as failure, only feedback and indicators to redirect. If you keeping trying, you will never fail.
8. Rich People Spend Money on Self Education and Poor People Don’t
Rich people understand that at least 10-20% of the money they make should be spent on improving themselves. That could be allocated to books, courses, conferences, mentorship or other types of training.
It could also be spent on masterminds or networking, in order to get around and think like the people they want to become.
In contrast, poor people try to save every dollar they are paid. The problem with this is that it is financial “defense.” Sadly, it will always keep you in contraction.
To change your fate, treat your life like a Profit and Loss (P&L) statement. There should be the total money in, the money you spend for life expenses and self-improvement, and the remainder should go toward acquiring assets that will improve your net worth.
9. Rich People are Innovators and Poor People are Consumers
Rich people regularly think about innovative things that consumers would want and be willing to pay for.
In contrast, poor people aren’t thinking about inventing or creating. They’re only focused on what they can buy. Unfortunately, this mindset keeps you in a cycle of consumership.
To obtain a rich mindset, start thinking about what you could exchange with others for money. This could be skills, products, services, ideas, technologies or anything else of value. Get creative.
10. Rich People Make Income Work for Them and Poor People Work for Money
Rich people use their money to buy other people’s time, so they can focus on higher value activities—such as business building, investing and self-development.
Rich people realize that time, which is finite during our lifetime, is our most valuable resource.
Poor people stay stuck in low paying jobs because they’re afraid to take risks and they struggle to know how to use their time more wisely.
You can think like the rich by purchasing real estate that will go up in value over long periods of time, get you tax deductions, and pay you cash flow every month.
Or, if you need a simpler place to start, pay someone else to mow your lawn at $10 per hour, so you can make $25 per hour working as a freelancer on Upwork.com.
Pocketing the difference of $15 per hour is called “keeping the spread” and it is central to wealth building.
11. Rich People Ask “How Can I Afford It” And Poor People Say “I Can’t Afford It”
This principle was first made famous by Robert Kiyosaki, author of the personal finance book Rich Dad Poor Dad.
In this book, Robert points out that rich people rarely allow money to be a limitation—even in their very early stages of success. Instead, when they want something, they ask, “How could I afford this?”
In contrast, poor people have been taught to say, “I can’t afford this.” Sadly, this shuts down the creative thinking process of identifying how it could be achieved.
It puts you into financial contraction and re-affirms your belief you are poor—when in actuality, you may be in the early stages of becoming rich and your good fortune could be right around the corner.
12. Rich People Know Income Can Be Increased And Poor People Think It’s Fixed
Rich people know that they can increase their income by skilling-up. Each month they focus on becoming more valuable to others—their boss, clients or the marketplace at large.
Over time, others are willing to pay them increasing amounts of money in exchange for increasing amounts of value.
In contrast, poor people think their income is fixed. They believe their earning potential will fall within a narrow range through their lifetime. This is a self-defeating approach.
It also isn’t true, because when you learn new skills that are in high demand today in 2020, you can instantly command a higher earning potential.
Yes, you will have to self-educate, and yes, it will be worth it.
13. Rich People Get Ahead During the Time that Poor People Waste
As Henry Ford once said, “It has been my observation that successful people get ahead during the time others waste.” This statement is wildly true.
Rich people frequently work weekends and evenings to achieve a goal or a target. This isn’t a life-work balance issue; it is a commitment to excellence and success.
In contrast, poor people tend to use evenings and weekends for relaxing, socializing and watching TV. While these are pleasurable and worthy pursuits, you’re awake 16 hours per day.
If you work 8 hours at your job Monday through Friday, you still have 8 hours left per day to put toward working out, self-care, self-improvement and learning skills that will drive you into new income brackets.
Benefits of Achieving a Rich Mindset
There are numerous benefits of a rich mindset that can change your life completely. Not only will you raise your income, but you’ll experience other positive results, such as increased confidence and well-being.
You can use this as a comparison guide to understanding the rich mindset versus the poor mindset, because these 13 differences can alter your life.
Remember, you can have anything you want—just not everything you want, so decide how to allocate your focus.
I believe in your potential to achieve a rich mindset, so know that where you are right now in your life is not fixed. You can change your circumstances at anytime by changing your beliefs.
Explore the blog to find more advice on how to set yourself mentally, physically and financially free.
What changes or additions would you add to this list? Let me know in the comments below.
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