Topic: Rich Mindset vs Poor Mindset : 6 key differences - page 13. (Read 3753 times)

I think the opportunities that rich people have is called leverage. Every rich person hangs out with another rich person who knows another rich person. So when they need something all they have to do is put a call through to one of the rich person in their circle who may have a connection  or establish a connection with whatever they may need. On the other hand, poor people do not really have as much leverage as do the rich. I mean the margin is so wide that what may take a call to fix a rich persons problem may take a lifetime to fix in the case of the poor person.

People adapt themselves to the circumstances in which they are living, those that are poor very rarely are going to have any kind of money saved to worry about investments, as such instead of wasting their time in something they have no hope of using for at least a few years they dedicate themselves to work in what they can control, a reaction that is very human and which is very efficient, but a decision that has very adverse long term effects, as it is very difficult for any person to come out of poverty if they do not understand how to use their money as effectively as they can.

Some of the phrasing and wording in your points is a bit unfair towards "poor" people. If we're truly ignoring the people in the middle and talking about the lowest earners versus the highest earners then it is a case of necessity. It can be impossible for people on the lowest wages to spare any, or at least a practically useful, amount of money each month because their expenditures is almost identical to their income. It's pointless thinking $1000 is anything except $1000 when it comes in and has to be paid straight out again in bills just for food and a roof over your family's head. Also, your first point mentions belief, it's not belief but actual fact - the richest have enough spare capacity in their budget that they can allocate a good amount to investments which make them even richer.

Most of these "mindsets" won't apply to the working class because they can't save much money after all their living expenses are factored in. If the minimum wage worker can actually keep something for himself after paying for the essentials, they'd surely save first before they invest. This is what a lot of people don't get: the poor are scared to invest the money that they don't have because they have to feed themselves with what little money they have, whereas the rich doesn't need to think about each day as they already have something to use while also having something to spare (invest). If the poor also has this freedom for themselves, they'd surely want to make more money in a heartbeat, too.

It may depend on the situation of the poor person. They won't be called poor if there's no sense at all. I don't think that you have to conclude that they may turn down it immediately just because they have a poor mindset.

They're not capable of investing due to their situation and most of them are fulfilling their obligations so, investing isn't their priority.

I agree with this.

They're only there when someone is talking about money but they'll go away if someone is talking about how to make money.

I've proven and tested this one already to most of my friends and relatives.

Poor people see bear season as an opportunity for them to purchase coins and hold until the bull season come before they can sell to make what they will use to feed their family while Rich people see everyday as an opportunity for them to purchase coins and sell at any convenience time for them without waiting for bull season to come before they can sell in the market. Poor people don't use a big amount of money to buy coins from the market, because they always afraid of long bear market while  Rich people prefer to use a huge amount of capital to buy coins from the market, and have full confident of making a huge amount of money at the end of the investment.

heres a good financial example of mistakes poor people make

imagine there is a car worth $20k, on a 4 year loan with 0%
a poor person pays $5k a year. $416 a month(AFTER TAXES). and its in their name. but not their property until final settlement payment. after 4 years even on a 0% interest. that poor person has actually paid $22k of their pretax salary, for a car they might get to own that becomes $10k value if you then sold
thus minus $12k loss

a rich person hires a car for $200 a month.. which over 4 years is $9.6k
but they claim the payments as a tax deductible meaning they only actually paid $9.6k that period.
thus saving $12.4k they didnt need to spend in that first period.

..
poor people like to "own" things that break down, need repair and end up costing them more then they realise.

rich people plan to avoid owning things that can break/cost them more long term.

This is because poor people don't have access to investments. If you look at what they learn from class it's just SAVING Money for the future. While the rich have access to the stock market and real properties inherited from thier parents. The rich also look up to what their parents were doing which was investing while the poor kids look up to their parents who toil hard.

This makes them think saving will make them rich but in the end, inflation hits them because the value decreases while the value of stocks could fly.

I see only one difference between poor and rich mindset - "the hungry person will never understand a well-fed person".

i agree with all statements apart from this one above

rich people have more opportunities without it messing up their life so they take more opportunities with less risk
poor people have more risks but dont have opportunities. but poor do take more risks
EG poor people are more likely to be gamblers/not pay rent so they can be consumers and buy things they shouldnt be buying, risking eviction
..
poor people are not "given" opportunities. EG startups dont door not poor neighbourhoods, they go to rich investors and ask for a large seed amount a poor person cant even afford, thus dont even get a chance to invest in startups


..
poor people dont plan on saving/investing. they prefer the "get rick quick" where,
the hope to double their money in a year as a 1 time in, one time out ASAP action.
where as rich people take small percentage profits daily multiple times, which add up to the "get rich" same multiplier poor people want, over the same year.
..
poor people are told to buy the hype/pump
rich people are trained to buy the dip/crash
..
a poor person would buy a car, and pay it off.. not owning it, but having it in their name. where its not theirs until paid in full, risking losing the car and the income that went into it if a debt collector came to the door.
a rich person hires a car, for lower monthly amount. and debt collectors cant seize a car thats not in the rich guys name.

There is a wide gap between the rich and the poor. They both have different mindset.

🗝️🗝️ The rich believe that money makes money. They see money as an opportunity but the poor people see it as something to be earned. 🗝️🗝️

🗝️🗝️ Rich people make money work for them. Instead of just working and relying on income, a rich person would take a proportion of their income and invest it but the poor people are said to work for money. A poor person sees $1000 as just $1000. A poor person works paycheque to paycheque for the rest of their life. They neither save nor invest any part of their income. 🗝️🗝️

🗝️🗝️ Rich people spend on necessities and what is needed not what is desired. A rich person with a perfectly functioning phone would not need to spend money on a new one. A truly rich person does not care about trends, they care about net worth. Poor people spend on both necessities and desires. A poor person spends beyond their means. They care about the latest trends, not about net worth. 🗝️🗝️

🗝️🗝️ Rich people think of a long-term goals but poor people set at best short-term goals or none. They do not see the necessity of long-term goals such as money for future living. 🗝️🗝️

🗝️🗝️ Rich people tend to be risk takers but poor person is more likely to be risk averse. For example, when given an opportunity to invest in a startup, poor people are more likely to immediately turn this down. They do not see this as a chance to increase wealth. They see this as a reduction of their disposable income. 🗝️🗝️

🗝️🗝️ Rich people are eager to learn but the poor people are not eager to learn. Most millionaires in the United States were not born millionaires, they learnt how to build wealth. The more they learn, the more they understand the world. 🗝️🗝️

Reference: https://novamoney.com/blog/5-key-differences-between-a-rich-mindset-and-a-poor-mindset

Conclusion
👉👉Recognize where you stand and how you would like to move forward. Having a poor mindset may made your poor forever. The mindset you have will determine the level of your achievement.

👉👉Never get confused about your recent status. Confusion brings distracted and lack of focus. It never to late for a change in mindset. Work on yourself, think positively, be focus, have a dream and work towards your dream to achieve great success.