Rich Mindset vs. Poor Mindset

Recently I was watching a video by Fight Mediocrity about the book, “Secrets of the Millionaire Mind” by T. Harv Eker. This book discusses the difference between a  rich person’s mindset and a poor person’s mindset.  In this instance,  the poor aren’t necessarily people with no money living on the streets (even though they are included). Rather, the book focuses and refers to people who follow the traditional paths of society and live mediocre life.

The traditional society path includes going to college, getting a good job, and working there until you can retire. The other common option is skipping college altogether and working a minimum wage job for the rest of eternity. They stick to a realistic path of life. According to the author Tim Ferriss, it is often easier to be unrealistic about life than to be realistic. This can be observed in superstars such as  Michael Jordan, Cam Newton, Cristiano Ronaldo, Serena Williams, and other great athletes who made their unrealistic dreams come true. Here are other reasons having a poor mindset is damaging.

To help you break out of the traditional paths of society, I decided to give my own insight on the principles from the book. Here are other ways of breaking out of the poor mindset.

6 Reasons Rich People Are Rich And Poor People Are Poor

1. RICH PEOPLE THINK BIG, POOR PEOPLE THINK SMALL

Poor people think small and realistically. They never look past their potential or past their environment. I can relate to the first one personally because I didn’t grow up in a very nice neighborhood with amazing houses. Instead of allowing my humble beginnings to make me think I can achieve anything, I used it as fuel to power me towards my grand vision.

Rich people understand that it takes a shot at the stars to truly become successful. Here is the funny part, even if you don’t reach the stars, you’ll land somewhere near them. Oprah Winfrey, for example, didn’t just let her humble beginnings lead her a simple fast-food job. She shot for the stars and most definitely got there. Stop thinking small. If you want to become a pro-soccer player in La Liga or MLS, then make that your vision. If you want to become CEO of Google, make that your vision.

2. RICH PEOPLE FOCUS ON OPPORTUNITIES, POOR PEOPLE FOCUS ON OBSTACLES

Poor mindsets always focus on the obstacles a.k.a. the negatives. Let’s say you have this amazing talent for cooking. People suggest that you start a business or at least write a cookbook. Instead of seeing an amazing opportunity, a poor person will see only the obstacles. They think to themselves: “There are already so many cooks in the world and it’ll take forever to get a business license. I know nothing about business, etc.” They then abandon the idea and go back to their dead-end job.

Meanwhile, a rich person will factor in the competition, time, and lack of business education, but they will not let that stop them. They will purchase books or use YouTube to educate themselves while they wait to get their business approved. No matter what, they will take the opportunity. From now on think positively in everything you do. Even if everyone around you is better than you, still give yourself a positive mindset and positive outcome.

3. RICH PEOPLE ADMIRE OTHER RICH PEOPLE, POOR PEOPLE RESENT RICH PEOPLE

I used to have a bad case of doing the latter. I would say things like: “Rich people could help all the poor and give them a percentage of their money, but they’re just so selfish.” Or I would think to myself: “Look at this rich guy, I bet he is bratty, rude, and corrupt.” I finally came to my senses and realized that most rich people work hard for their success.

I recall being at school on time when a fellow football player said he didn’t like me. I didn’t care, but I asked why. He said: “Because you hang out with the rich preppy people and dress like them. I hate people who think they are better than their actual situation (referring to the fact I lived in the hood).”  I replied that I was not being fake and that my actions were my choices and my responsibility only. I added that I surrounded myself by such people because they had more value to bring to the table than most of the drug dealers at my school. Needless to say, he hushed his mouth. Here are other successful people to inspire you.

Rich people admire other rich people. They know that their positive attitude and mindset can only benefit them further. They know that it takes fellow rich people to get richer. They don’t see someone driving a Ferrari and judge them. Instead, they see a Ferrari and say: “Soon I will have one of those.”  Instead of resenting the rich, use their success as motivation. My favorite role model is Alex Ikonn. I look at him for inspiration and motivation, not to bash him.

Photo credit: Vinoth Chandar via flickr

4. RICH PEOPLE PROMOTE THEMSELVES AND THEIR VALUES, POOR PEOPLE HAVE A NEGATIVE SELF WORTH

This is a good one. Many poor mindsets will look at selling as something bad. They think that big companies manipulate poor people into buying their products and services,  which keeps the poor people poor. They also think that selling makes someone look desperate. If a poor person owned a gardening service, for example, they would not go door to door offering their services. Instead, they will hope the business will just come to them, simply because they do not want to look desperate. However, they will eventually suffer from these actions when they gain no profit.

Rich people, on the other hand, don’t mind begging. They know that they are manipulating people into buying their products, but that is how business works. This is not manipulation, but more like convincing someone to buy their product based on the fact that it could benefit them. They understand that they will have to do things today that others can’t do tomorrow. If you want to get rich no matter what, you’ll eventually have to sell and promote. The other word for this is HUSTLING. Get in the habit of doing it.

5. RICH PEOPLE WANT TO BE PAID BASED ON RESULTS, POOR PEOPLE WANT TO BE PAID BASED ON THE TIME INVESTED

Poor minds will feel as though they should be paid by time. You don’t deserve $10/hour for 40 hours if all you did was slack off. I’ve seen many individuals complain about getting paid next to nothing to do a nothing job. Now you’re probably thinking something along the lines of: “But what about those who work hard?” Well for those who work super hard, here is a thought to ponder: “You can be the best floor cleaner ever, but what value does that bring to McDonald’s?”

Rich people, on the other hand, will understand that it is more important to get paid by results. If they work on creating a product for a whole year and start selling it, they will not focus on marketing the amount of time they’ve worked on it. If the product sucks, no one will care about how long it took you to work on it. They are going to focus on the results, not the time. This is why professional athletes are paid by their performance, not by the time they have invested.

Your time is valuable, but no one cares about that. If it isn’t their time that is being wasted, then they truly don’t care. Focus on being paid by the results you give. If you bring your company a 70% increase in sales in a month, then you have a valid reason to want to ask for a raise. Not because you spend the day in and day out working on bringing that increase in sales. Results speak louder than time.

6. RICH PEOPLE MANAGE THEIR MONEY WELL, POOR PEOPLE WASTE THEIR MONEY

I always wondered why people who complained about their money didn’t just pick up a book and learn the basics of money management.  I was in a similar situation not too long ago, but ever since I  started educating myself on managing money I have been doing so much better at accounting for my money. Poor people tend to go with the cheapest option, which ends up being the most expensive option over time.

Let’s compare two paper towels, for example. Paper towel A and paper towel B.  Paper towel A is a shorter roll, but with more absorbing power and at $3/roll. Paper towel B is a 20% larger role, but is really thin and cheap, at $o.99/roll. Most people will look at the QUANTITY of savings from paper towel B. However, what might take 2  sheets of towel A to clean up a spill, will take 10 sheets of towel B.  The lesson to be learned is, don’t waste your money on what looks like a bargain.

Rich people are rich because of their excellent education on money management. They understand things like paying themselves first, investing, quality over quantity, budgeting, and savings. They educate themselves and handle their money. They spread their money out and allow it to work for them. Check out this article to help you save your money.  A dollar spent today could have been a dollar saved for tomorrow. Don’t let peer pressure convince you to spend your hard-earned money.

There you have it! My main points about the book “Secrets of the Millionaire Mind” by T. Harv Eker. I hope it inspired you to completely change your mind-frame. Be sure to leave a comment below if you have any questions or statements about this article.