7 Ways Wealthy People Think Differently
While some rich people are obviously rich based on their appearance and the quality of their lifestyle, other people pretend to be rich, living well above their means, spending much more than they earn, living on credit, and slowly burying themselves in debt.
Adding to the confusion, some rich people go to the other extreme and are disarmingly modest. For instance, two of the richest men in the world, Carlos Slim (with an estimated 2017 net worth of $51.2 billion) and Warren Buffett (with an estimated 2017 net worth of $73.4 billion) don’t live in mansions but in the type of homes owned by those in the middle class income bracket.
How A High School Dropout Became A Millionaire
Napoleon Hill interviewed 500 of the richest people of his time to write, Think and Grow Rich. This 1937 book itself created millionaires who followed his ideas of learning how to think like a rich person. So how do rich people think before they become rich?
Here is a modern true story that illustrates the point that you have to think rich before you get rich:
If you read a report on cryptocurrency would you consider buying Bitcoins? If you’re like most people, you might not want to take a risk on a new form of currency, even though it appeared to be widely accepted all over the world.
However, that’s not what Erik Finman thought when he first heard about Bitcoins. Instead, this high school dropout thought like a millionaire long before he became one. Finman bought his first Bitcoin when it cost $12. Over the years, he progressively built up his collection of Bitcoins. He then sold his investments when a single Bitcoin was valued at $1,200 to make his first million.
7 Wealthy Mindsets
Steve Siebold interviewed over a thousand ultra-rich people to write his book, How Rich People Think. Here are some of the differences he discovered in the difference between how a poor person thinks and a wealthy person thinks:
1. A poor person thinks money is the root of all evil while a wealthy person thinks that you need resources to achieve things in life.
2. A poor person considers selfishness immoral while a wealthy person thinks that you can only contribute to the welfare of others when you have something to give.
3. A poor person hopes that they will come into some good fortune while a wealthy person believes that action is necessary to change things for the better.
4. A poor person has little regard for acquiring expert knowledge while a wealthy person is eager to learn new things.
5. A poor person reflects on all the mistakes they’ve made in life or longs for the good old days while a wealthy person thinks about what’s possible in the future and engages in setting goals and making plans for a better future.
6. A poor person makes emotional decisions about money, either hoarding or overspending, while a wealthy person make logical decisions, evaluating the value of things before investing or spending.
7. A poor person works for a living at a job they hate while a wealthy person focuses on projects that they love.
Master Your Mindset
Although it may sound somewhat counterintuitive, you won’t join the 1% who earn over $380,000 a year simply by going back to school, getting a better job, or saving more money each month. It’s not that there is anything wrong with this approach; it’s just that it’s premature. Before taking any course of action, no matter how sensible it appears to be, you must first change how you think. When you have the right mindset, then everything you do will work out in your favor, and if you’re doing the wrong things, you’ll quickly course correct.