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

If you aim for positive changes, then work for it and stay focus on positivity along with faith. Do not just create action plans, but put it into action. Though losses are still inevitable, but it won’t be a big barrier to achieve what your set goals in life. Take some calculated risks if needed, as others would also say, no risks no gain. Lastly, stay patient and never be greedy. Everything good in life does not happen in an instant, does not have shortcuts, so just work on them one step at a time.

If the person came from a rich clan then yes. They can talk like that because they never experience to become one of the poors but there are also rich people who started as a poor. They know how hard it's like to become one so they respect them and they even provide help if they have the chance.

It is also not true that poor people are not risk takers. If so then why there are so many addicted gamblers on poorer countries? Not just gambling but many of them do also venture different fields eg. opening a business, doing investments, trading and so on. Sometimes it's not really about our status in life but it can also be about how lucky or unlucky we are.

Yes.. even with an aggressive investing (or savings) plan, you have to be careful that you are able to accomplish your regular investment while at the same time making sure that you have some kind of an emergency fund, so that you do not have to dip into your investment at any time that is other than your own choosing.

So even if you have an income of $4k per month, and you are setting aside $1k, you might ONLY want to put half of the $1k into bitcoin and have the other half in cash until you reach an emergency fund size that you feel is sufficiently large enough that you do not have to worry about overly extending yourself in terms of your bitcoin investment.

So let's say that once you have been investing half of your $1k into bitcoin and the other half holding in dollars.. after a year you would have $6k into each... but $6k might ONLY be two months of your expenses, so you might have to build a larger emergency fund cushion before you are ready to put the whole $1k into bitcoin, and so each of us will find an amount that is comfortable to us.  Frequently newbies will put too much into the investment and then they do not have anything when an emergency comes.. so how much should you have 4 months? 6 months?  Some of that depends on various aspects of your living circumstances and perhaps even the reliability of your cashflow and your ability to control your expenses in order to feel that your cushion is sufficiently reasonable and prudent rather than gambling.

And the more they have and the biggest their income is (from wage and investments), the fastest it's going to be to continue growing the patrimony unlimitedly, if a smart management strategy like the one you mentioned above is applied.

Growing patrimony is exactly like a compound investment. I believe that is why it's common to see rich people getting considerably richer each new year, while the maximum poor and middle class citizens reach is the acquisiton of a self-owned house or apartment and a small countryside property to enjoy after the retirement. There is the mindset aspect which prevents people from going ahead in financial status, but there is also the "compound interest" one.

The fact that there are people who do believe on lots of superstitious beliefs and trying out to follow Ex. Lucky charms, Lucky cloths and other which are related to it which they do really believe that it could make

them rich and surprisingly these people just simply watch and wait up for these things to effect which is really that a bullshit kind of mindset to have.You wont really progress or make yourself rich if you dont act and
make out hard work and this is the reality.There are really just people doesnt really like to work and would rather just wait up for good thing to come until they do die on being poor.
It all matter about on how you do work hard to reach it and not just sitting for something to happen.Totally opposite in between rich and poor people and if you are really that mindful on having a
change then you should changed up that attitude and perspective in mind.

I like the investment scheme that you have detailed above, I accumulate that you allocate 25% of total monthly income and the realistic allocation is not too high if someone wants to increase investment every month, even though my monthly income is still relatively low but I am committed to holding more BTC at the current price range and bought it using savings funds, hoping I get high returns for long term investment.

Faith without work amounts to nothing. No pain no gain as they say it. If you have a good mindset that is not where it ends because you must have to work for that mindset that you have. If you are not doing well likewise you can change your destiny by working harder but working harder is not about the amount of muscles you have in your biceps but your ability to change your environment, ability to learn new things because if you are doing the same thing every day then don't expect a different result.

Actually, you make a very good point here justdimin. 

The sensation of richness is being able to live within your means based on the income that you have and to NOT have any feelings that you are being deprived in any kind of material and/or meaningful way.

Accordingly, if you are able to live within your means based on the cashflow that you generate, and then if you have extra that you can invest without feeling that you are taking away from your ability to live in a way that you believe is sufficiently comfortable, then that ongoing investment is a bonus that likely will continue to grow and will likely ongoingly allow you to increase your standard of living with the passage of time.  Surely any of us can get spoiled in terms of feeling that we need certain material items to live, and likely we would prefer to be increasing our standard of living with the passage of time, rather than feeling as if we have to cut back with the passage of time.

Let me use the lower end of your number of $4,000 per month to live comfortably... that's $48k per year... That seems to be more than necessary.. and even from that number it is quite possible that $1k per month could be used for investment and only $36k is actually used or needed for living expenses and to still live relatively comfortably.  Of course, if you have a family then you do need more than what would be considered to be supporting a single person.. so the number can vary in regards to the family considerations, too.  If you are able to invest $1k per month ($12k) per year, then it may well take you three years to get to a point of having enough to have 1 year's worth of living expenses saved up (that is not accounting for how much that investment might appreciate.. but we could just try to presume that it is keeping up with inflation at a minimum and perhaps growing slightly beyond just sitting there and devaluating). 

 

That's the difference and the threshold for sure. If you do not worry about regular life expenses, if you have enough money that it's not a problem to pay the bills, then you are rich, that's my understanding of rich.

This is about 4-5 thousand dollars in most places of the world, outside of places like London or New York for example. But in my nation, if you are making more than 5k per month, and it's guaranteed so not like in 10 years suddenly you are poor, I mean guaranteed income? In that case you are rich. And those people could have a lot better investments because even if they fail, the worst case is not worrying about money, best case, being even richer than you were.

This is a great list and mostly what one sees when having interactions with these two sets of persons.
I would like to point out that I do not totally agree with this statement. Most rich persons have more than one phone and it is usually the most expensive time
Most rich persons have more than one car and it usually the most expensive type. The other rich friends in their circle does so it is almost like a competition. I can say the same for yachtes and boats.
They barely spend time on or in these toys but pay huge amounts of money on maintenance. I can go on and talk about houses or mansions owned by rich people in which on one life in but is maintained by them yearly. So, you see rich people do not just care about trends but sometimes join the trend. Just that they do not flaunt is as poor people do.

Very situational and it is something that you can really avoid not to think specially if you are on a condition on which money or finances is the main issues and this is why you cant really be able to make up some further step just because you dont have the capacity on doing so and this what limits you on making further step which other people couldnt see and just make out some conclusions that poor people doesnt really
make any steps on making their lives more better which is something that you dont know the real story behind.

I think in this case they tend to be more careful because when poor people with all the limitations they have will obviously think several times about investing, especially they also don't only have to think about the future but tomorrow they have to think about it because it's not certain. they can earn more money in their current deprived condition so that when there is money they prefer to think about tomorrow rather than for the long term.
In contrast to people who have more funds they can think more for the long term and of course they can invest comfortably without having to think about how they live and eat tomorrow.

Because of their mindset taking an investment will be much better than nothing while big risks are common in investments or businesses that they live in, as soon as they build their financial cushion in a short time means he has thought the opportunities in this case are quite promising even though there is a big risk behind it.

I have been in business in my life, if there is an offer to me, never refuse it because I know that this is my chance to get an opportunity that is more worthy of getting after I can run the business, it doesn't matter spending money but I have to learn the right business will be carried out and until now it still survives even though income is still fluctuating, but I am still focused on living it and I believe this is the best zone for me to take to gain wealth in the business he is running.

I don't want to get stuck in a lifestyle or other luxuries, it's better to postpone this pleasure until success has really been achieved.

Exactly.  For a lot of normal people, it could take years and years to even build enough of an investment portfolio (or savings) to cover half of their current year salary.  So if they are making $30k per year or even $40k per year it could take a few years just to build up an investment/savings that is $15k or $20k respectively... and then before anyone might even come close to starting to feel comfortable to take risks, they might even want more of a cushion than merely half of a year or salary... maybe they want double that.. so then if they are 10 years of saving and investing, then perhaps they might be willing to take some risks.. but still at that point they might be feeling that their opportunities are not really there anymore to be taking risks in terms of their age and other aspects of their lives in which they ended up getting locked into various kinds of circumstances that make it more difficult to venture out to take risks in some of their own projects/passions or other kinds of ways to invest themselves.

A person who is able to muster up capital a lot quicker (such as building up a 6-12 month living financial cushion within a year or two of their becoming financially independent), then those kinds of persons might be willing to take more risks earlier on without getting locked into a less risk inclined lifestyle.

one person who thinks like this will definitely not have any development in his life. The main reason why "poor" people avoid taking risks, stay in their comfort zone, do not spend time and effort on self-improvement - has to do with money.

When not having enough money, the main goal is to make enough money to cover basic needs (food, clothing, shelter) and then luxuries (furniture, tools, machinery etc). they can't take risks because of one bad thing and they can end up in (financial) trouble and so tend to stay in their comfort zone.
Continue to learn from every problem and learn from every opportunity in the opportunity with mental readiness and heart confidence

Can't comparison about rich and poor mindset depend them have to spent money for daily day needed, no doubt easy for rich people spent their money for investing but we can't fault about poor mindset about their money have spent more without used half for investing. Having contrast difference between rich and poor person about their money management.

I think still at young age and haven't family is the best way how to adopt with rich mindset and never spent money for something not really important, when having family I don't know can't spent half of our income due many necessities in everyday life. I hope here for every one adopted with rich mindset when still single and don't waste your money for not really urgent needed.

I have faced that before, someone offered me a website that was making about 600 dollars per month, for 150k dollars. They have only shown the numbers they were getting in unique visitors and page clicks and so forth, and showed me how much money could be made with that as well, which all in all looked like it would be quite difficult to handle at the same time.

But that did not change the fact that we are talking about an unlikely situation in the long run, it's just not possible and I asked to see their financials, which turned out to be just 600 dollars per month. I rejected very quickly. Just check every detail, because even though it may look good, it may have hidden bad parts.

🗝️ 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. 🗝️🗝️

This statement is not all that true, in recent times I got to witness that the unnecessary spenders are rich people,  they buy things they won't make use of just for pride sake and for the fun of it where as poor people don't have that much to play with because most of them live on survival and so they spend only on things that are needed and necessary most at times .

Some rich people are just fortunate, it's not like all rich people live on a workable or proven principle  ,

Surely, in any business deals that you have, you have to make sure that you are protecting yourself and/or NOT taking undue risks based on too many unknowns, including the fact that some people might be acting in bad faith in order to screw you. 

I doubt that you have to sink to the level of bad people in order to get ahead, merely because you have seen that there are some bad people who end up "getting ahead" in life while sometimes you are struggling to be more honest.

But, yeah of course, it is your choice regarding if you believe that dishonesty, immorality and/or stabbing people in the back is going to work towards your "getting ahead," and if you believe that it is better to live your life in those kinds of ways.  It's your choice, and no one is telling you what to do.. and whether you get caught or get thrown in jail or any of that is not clear either.

By the way, I am not even suggesting that your actions have to match your words - because sometimes when you are dealing with mean, evil and/or immoral persons, sometimes you might need to make it appear that you are ready, willing and able to sink to levels as low as they are willing to sink.. yet in the end, it's still up to you whether you will actually sink to such low levels or to determine if you are forced to interact with people like that or if there might be ways to structure your life and your interactions in such a way that you are lessening the frequency of interactions with scum-balls.  It's not always completely avoidable to interact with scum-balls, and sometimes we might end up in unexpected place or even have to travel through some places in which we would have had preferred not to travel.

i am not sure - if I am right or wrong - but I have always been very honest with my deals with other and that honesty has costed me so much
I have lost so many friends - the only selfish person survive in this world and that is the bitter truth.