Rich Mindset vs Poor Mindset : 6 key differences

[odunybiz]

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.

[franky1]

🗝️🗝️ 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. 🗝️🗝️

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.

[Erumo]

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

[bittraffic]

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.

[franky1]

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.

[Zanab247]

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.

[livingfree]

🗝️🗝️ 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. 🗝️🗝️

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.

🗝️🗝️ 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. 🗝️🗝️

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.

[dothebeats]

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.

[Fortify]

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. 🗝️🗝️

👉👉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.

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.

[South Park]

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.

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.

[Davidvictorson]

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

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.

[Baofeng]

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.

Also the rich and poor people do not have the same opportunities that knock on their door. While rich people can easily make money because they can just inherit the wealth of their parents and make them grow, poor  people still have to find good means the hard way just to generate money. So it’s not surprising that the rich people will tend to become richer, while poor people stay poor the whole time. It’s not only because of the mindset but the inequality of opportunities matters too.

Of course the opportunity will not the same, and so it just boils down to the mindset. There could be opportunity for poor people that they don't realized maybe because they thought that they will be poor for the rest of their lives. And that's why majority of them did, so again the mindset could be the biggest factor for any individual. And we wish that we know this when we are growing up, although I would say that my parents open my eyes on investing on stocks which I did when I got my first job, saving for the future and financial freedom.

[lalabotax]

🗝️🗝️ 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. 🗝️🗝️

It is because rich people have reserved money in the bank and they own some businesses. So, if they fail in one investment, they don't need to frustrate because they still have other businesses and still have money to use for another investment. It is different with poor people, once they fail in one investment, they probably lose all their money. So, they cannot try more investments since they have no longer money. You need to understand that poor people have limited money, dude! That's why they are not brave to take in a too risky investment.

[darkangel11]

I felt rich a few times in my life and I can tell you that your whole mindset changes at that time. You feel more relaxed and less stressed because most bad things that get you down during the day can be fixed with some money. When I drive and I know I have little money I tend to look at the speed limit and worry if there isn't a cop following me but rich people don't care about these things. If something comes up they'll simply pay up and go on with their day. They don't worry if the fridge will need replacing this year, they don't worry that the roof is leaking or that they can only fill the car half way this week. All the little things that poor people think of during the day disappear for the rich and they can focus on things that matter like investing, being with their family and friends, having fun.

[Hydrogen]

The poor believe only special people deserve to have success, fame, money. They believe that they could never aspire to enjoy the greatness or life of luxury celebrities and stars have.

The harsh truth could be that anyone can have those things. They only need to walk through the door. The rich are always persistently trying to walk through the door that determines wealth. While the poor believe walking through that door is a fate not for them, but is reserved only for others.

Culture and values of the rich and poor reinforce these concepts. The wealthy usually encourage each other to be brave and bold. While the poor are finding new methods to oppress each other and keep each other down. The rich believe the natural state of humanity is to succeed. While the poor believe the natural state of man is failure. You can sometimes tell whether someone is rich or poor. Simply by watching the pleasure they take either in the success (wealth) or failure (poverty) of others. One demogrpahic celebrates success, while the other does the opposite. That simple choice determines their direction and future.

[Findingnemo]

Rich people makes money in more than one ways which should also has to be pointed out, if someone relies on particular thing for their earnings then their whole life is under risk if its gone someday whereas rich just keep exploring new way and more ways so they reduce the risk factors by accumulate cash flow with different risk sectors.

[Kakmakr]

This thread looks like it was copy & pasted out of a Robert Kiyosaki book.... because he also has the same outlook on this. The thing is, when you have money... you can take more risks... but when you are living from hand to mouth... taking risk will take food from your family. 

Also... saying Rich people will make money work for them is 100% correct, but you need that money for it to work for you. I have 3 jobs at the moment.. and I can barely pay all the bills and still have some money left for investments. 

[tbterryboy]

Rich people makes money in more than one ways which should also has to be pointed out, if someone relies on particular thing for their earnings then their whole life is under risk if its gone someday whereas rich just keep exploring new way and more ways so they reduce the risk factors by accumulate cash flow with different risk sectors.

Actually, rich people take more risks because they loan money and then they put all that money to possibly grow out their business. Also, their earnings on their business will be re-invested again on that same business or on other types of business that they will like to add/venture. This is something that can't be done by a poor people or people with poor mindset.

They think it is too risky, hard or simply they are only lazy, that is why they only stick on their comfort zones. That was still fine as long as they will learn to save up so that when they get fired or their contract ends, they will have something to get before they can find another job again.

[davis196]

You forgot to mention the most important skill of almost every rich person-knowing how to sell.
We live in a market economy and knowing how to sell a product or service is the ultimate skill. Creating a great product and providing a great service is really important, but it's not enough for scaling the business. That's why marketing and writing sales copy are so in demand in the modern day world.
The poor usually don't have that skill and they don't want to develop it.
Another really important skill is persistence. Many poor people can't achieve success simply because they dive up too early.
I really successful person would persist until achieving his goals and dreams. He or she would even fail a couple times before achieving the desired goal. Poor people are too afraid of failure.

[P2PECS]

Well, one can mention these differences or others. The groundwork was done by Kiyosaki, explaining the second point mentioned, that the poor work to earn money while the rich make money work for them. An essential characteristic of the middle class being that they buy liabilities, such as cars or the house they live in, thinking they are assets. Although in the case of the house, this would be more debatable.

One essential feature that I do not see in the debate is the difference in the idea of rich.

If you believe that the rich are evil and that to get rich you are going to have to cheat, swindle, and exploit, you are never going to get rich, unless it is by committing crime.

The rich instead have an idea of rich people as generous, strong-willed, focused on the long term, and so on.

If you are poor or middle class and think like this, it is easier for you to become rich in the future.