Advertising
Advertising

5 Things About Rich People that the Middle Class Doesn’t Understand

5 Things About Rich People that the Middle Class Doesn’t Understand

Poor and middle class people often feel resentment towards the rich – after working like a beaver for several decades and finding yourself not better off than when you’ve started, it is easy to assume that those who earn a thousand times more with seemingly lesser effort are either devilishly lucky or plain dishonest. In truth, the difference between the middle class and the rich is not so much about luck or morals as about state of mind. Which means that by learning to think like the rich you can make your first step to achieving the same level of success.

1.The Wealthy Prioritize Earning over Saving

Work hard, start saving early, live below your means – it’s all the usual advice for building your financial independence. And it is exactly opposite to what rich people do. They don’t put money away for a rainy day in order to ensure their future – they put it to work. They aim at increasing their earning ability, which is very rarely limited to simply working harder. Instead of trying to ensure the safety of already earned money, they try to make this money bring them even more dividends – and we are not talking about retirement funds but full-fledged investments: in real estate, in business, in everything middle class people consider too risky.

Advertising

2. The Wealthy Live within Their Means

At the same time, the rich don’t increase their earnings just to feed their ever-growing appetites for consumption – they do it to satisfy their appetites for growing richer. When a middle-class person suddenly starts earning considerably more, he is quick to show it: by buying a more expensive car or moving to a larger house, for example. When a rich person increases his income, he looks for ways to invest it in assets, not liabilities. The richest people are indifferent to showing off their wealth – they don’t shy away from looking how to extend the life span of their old cars instead of buying new ones or living in a much smaller house than they can afford.

3.The Wealthy Are Always Ready to Change and Grow

The main feature that differentiates the rich from all the rest is their ability to change, grow and learn. They don’t feel obliged to follow the way of life they’ve chosen a decade ago just because there is so much time invested into it. If they find something better, they will immediately use the chance of improving their position. It means constantly learning new skills, reading things that inspire them to do better, drastically changing lifestyles and so on.

Advertising

4. The Wealthy Care More about Wealth than Consumption

All in all, truly wealthy people are indifferent to all the nice shiny things their wealth can buy them – they value the wealth itself. Warren Buffett, one of the richest men on the planet, still lives in a house he bought back in the fifties for $31,500. Today Mr. Buffett is worth more than $68 billion – and if you compare the place he lives in with mansions owned by people that don’t have a fraction of his wealth you will get a very important lesson: possessions have nothing to do with success.

5. The Wealthy Are not Afraid of Aiming High

Since early childhood most of us are taught to be reasonable about our dreams and desires. Set easily achievable goals, move ahead a step at a time, choose a direction and steadily move towards it, hoping to achieve something one day. Somehow, with the rich this lesson doesn’t take. They don’t suppose that the goals they set for themselves are overly ambitious, impossible or just plain crazy – and quite often they turn out to be not that impossible after all.

Advertising

The important thing to understand about wealth is all about thinking, not luck. You may win a jackpot in lottery, but if you don’t think like a rich man, you are most likely to lose everything you’ve won or stay a the same wealth level.

Featured photo credit: Rich Danbo 2/Mohd Haniff Mazlan via flickr.com

Advertising

More by this author

Melissa Burns

Melissa is an entrepreneur and independent journalist. She writes about communication, entrepreneurship and success on Lifehack.

Why You’re Feeling Empty and How to Fill the Void Wealthy, Successful People Who Choose Less over More: 10 Real-Life Stories of Minimalists If You Want to Succeed in Life, You Need to Find Your True Calling First Everything We Can Learn from the Most Famous Entrepreneurs Around the World Why Is Empathy So Important?

Trending in Money

1 How to Develop a Millionaire Mindset in 6 Simple Steps 2 How to Eat Healthy on a Budget (The Definitive Guide) 3 9 Millionaire Success Habits That Will Inspire Your Life 4 Top 5 Spending Tracker Apps to Manage Your Budget Smart in 2020 5 How to Set Financial Goals and Actually Meet Them

Read Next

Advertising
Advertising
Advertising

Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

Advertising

2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

Advertising

If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

Advertising

4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

Advertising

5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

More About Thinking Smart

Featured photo credit: Austin Distel via unsplash.com

Read Next