Rich Mindset vs Poor Mindset : 6 key differences

[mvdheuvel1983]

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

🗝️🗝️ 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 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.

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[justdimin]

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.

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.

[JayJuanGee]

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.

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.

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). 

 

[Gozie51]

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.
.

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.

[capedbaldy]

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). 

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.

[Hamphser]

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.
.

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.

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.

[uneng]

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).

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.

[JayJuanGee]

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). 

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.

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.

[doomloop]

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.

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.

[Sanitough]

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.
.

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.

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.

[isaac_clarke22]

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.

Got this mindset actually and people think that as "living averagely" which they describe it as a boring, but for me, it feels like more than enough for me.

Considering how hard is it to live these days and it almost felt like a survival struggle, I would consider being able to pay bills comfortably while being able to go out a little bit to have fun is richer than what other people can see. Net worth does not define the whole meaning of "being rich'.  I can still recall plenty of unhappy people with large amount of net worth.

[zaki12]

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.

Yes Very realistic difference. The poor and middle class work for money, while the rich tell their money to work for them.
actually investing does not have to be rich and poor, the most important thing is that the financial mindset must be changed. Fear of making mistakes means you are not ready to know the truth.

People prefer consumption over investment, because to show off their lifestyle on social media, people like this never think long term.

[puloweh555]

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

It's true, sir, people with a poor mentality if given a lot of money will spend their assets while people with a rich mentality will invest if given a lot of money, people with a poor mentality spend money on their desires while people with a rich mentality spend money on their needs.

I have found that many poor people are less self-aware, get even a little fortune and go crazy shopping for things they don't necessarily need.

[Dr.Bitcoin_Strange]

First of all, when I see the poor, one thought always comes to my head, which is, "Did these people just choose to be poor?" When I see the rich people too, I begin to wonder: "Did they also choose to be rich?" is not that simple.

But I have come to understand that richness is from the mind (mindset), and poverty is also from the mind.


Let me illustrate this example: [Back then, in 2008, an uncle of mine was still in high school, while I was in junior secondary. So one day he returned home crying with his mom (my grandma). I was shocked at their expression, so I asked what happened, and my uncle told me that he would not be able to further his education because there was no financing and nobody agreed to help. 

I started crying too, asking myself if it meant I would not finish my educational career either. To cut the whole story short, my uncle finished his Bachelor of Law degree, his Masters degree, and his PhD at the University of Aberdeen, Scotland; he owned a business that is being managed by his wife in London; and recently he was enrolled as a solicitor in Scotland.]


I'm not saying all that because I just wanted to blab, but because the situation with us back in 2008 was poor, but today it is not as it was then. Things were so difficult for us that we should have given up, but yet we never cultivated that mentality of poverty. 

We worked with three more keys: self-determination, self-discipline, a rich mindset, persistency, hard work, and overzealousness. 


So why I said richness is from the mind is because when you have the mind set for wealth, you will open your mind and hands to opportunity, and even when the opportunity is not coming, you will still strive hard to create the opportunity for yourself. When you have that mindset of wanting to be rich, you become too conscious of your time. You analyze an opportunity technically and logically, and you define what good can come out of it. When you have a rich mindset, you discover how much you are worth, and you make things happen around you and not just sit and wait until things happen. A rich mind set gives you that zeal to be calculative, and even before taking any risk, you are already determined about the action to take when the result you get is not what you expect.


The poor mind is even too scared to try; the poor mind is too scared to lose; the poor mind ventures into what can only give them quick money, so they don't look at the risk of what they are venturing into. The poor mind will believe everything they are told; for example, tell them, "Your dad was not rich, your granddad was not also rich, and you will not be rich either." Because they have a poor mentality, they begin to think that poverty runs in their family. Lmao🤣🤣

Poor mentality is like a cage that binds people to only one circle. When you see them (the poor), they are always in the same stage of life, making the same mistake over and over again.


Gift a rich mind $1000, and they will think of ways to multiply the money and spend only the profit it will generate. But give a poor mind $1000, and you will see him thinking of ways to lavish it on a few of his desires.

[Questat]

First of all, when I see the poor, one thought always comes to my head, which is, "Did these people just choose to be poor?" When I see the rich people too, I begin to wonder: "Did they also choose to be rich?" is not that simple.

But I have come to understand that richness is from the mind (mindset), and poverty is also from the mind.

It is not our mindset, it is a capability of a person. Some live poor, their beginning is poor already, though they wanted to become rich or even just have a better life but because of their situation, it is only just a dream. While those who are born rich already, simply have the opportunity to sustain and grow their money more.
Though we can say that everyone has the opportunity to become rich and achieve their goal. Yes, there is but we can deny that it was a big challenge for the poor people and some of them quit and are just contented with what they have today.

[panganib999]

One thing that sets poor people from rich people apart, and I read this in the Robert Kiyosaki Book "Rich Dad Poor Dad", is that Poor people tend to own liabilities, whilst rich people own assets. Poor people like to take out loans for stuff that would depreciate in value over time, phones, cars, luxury items, and the likes. They do this for various reasons, mostly to look rich. Rich people do not have that inferiority complex within them so instead of spending thousands of dollars on stuff that wouldn't mean anything in the long run, they acquire assets. Stocks, bonds, lands, even crypto for some. They do this to make more money, and to be really rich through and through. Rich people take out loans too, but not to buy more liabilities, they take out loans, which are essentially money that isn't theirs, to buy assets under their name, which in turn flips up money for them, which they get to keep.

[serjent05]

One thing that sets poor people from rich people apart, and I read this in the Robert Kiyosaki Book "Rich Dad Poor Dad", is that Poor people tend to own liabilities, whilst rich people own assets. Poor people like to take out loans for stuff that would depreciate in value over time, phones, cars, luxury items, and the likes. They do this for various reasons, mostly to look rich. Rich people do not have that inferiority complex within them so instead of spending thousands of dollars on stuff that wouldn't mean anything in the long run, they acquire assets. Stocks, bonds, lands, even crypto for some. They do this to make more money, and to be really rich through and through. Rich people take out loans too, but not to buy more liabilities, they take out loans, which are essentially money that isn't theirs, to buy assets under their name, which in turn flips up money for them, which they get to keep.

I think mindset depends on what the person has learned in his life.  Whether the person is rich or poor, is not the question in here, there are poor people with the same mindset as rich people while there are rich people that have a mindset worst than poor people.  At the end of the day, it is access to financial knowledge that affects one mindset when it comes to financing so I think it is biased to think that poor people can never have the same mindset as rich people.

Robert Kiyosaki is just exposing why people stay poor while why people become rich.  there is some solid guide in his book but somehow I felt that he isn't exposing everything.  Like he isn't started as a poor guy and more.

[Kelvinid]

snip...

I think mindset depends on what the person has learned in his life.  Whether the person is rich or poor, is not the question in here, there are poor people with the same mindset as rich people while there are rich people that have a mindset worst than poor people.  At the end of the day, it is access to financial knowledge that affects one mindset when it comes to financing so I think it is biased to think that poor people can never have the same mindset as rich people.

Robert Kiyosaki is just exposing why people stay poor while why people become rich.  there is some solid guide in his book but somehow I felt that he isn't exposing everything.  Like he isn't started as a poor guy and more.

But I got some point in not mentioning it because he wants to encourage poor people to think big and succeed. In fact, many poor people have changed and pushed themselves to work hard but unfortunately, not all become successful. Mr. Kiyosaki is just expressing what he experienced during his young age but if we ask those who are really poor condition, I mean those who are really in the dip situation, we can assess that it was not the mindset making you rich but financial education as well. Meaning, they still need to spend more money for this, yet they don't have any to support it - they lose the opportunity.

[n0ne]

snip...

I think mindset depends on what the person has learned in his life.  Whether the person is rich or poor, is not the question in here, there are poor people with the same mindset as rich people while there are rich people that have a mindset worst than poor people.  At the end of the day, it is access to financial knowledge that affects one mindset when it comes to financing so I think it is biased to think that poor people can never have the same mindset as rich people.

Robert Kiyosaki is just exposing why people stay poor while why people become rich.  there is some solid guide in his book but somehow I felt that he isn't exposing everything.  Like he isn't started as a poor guy and more.

But I got some point in not mentioning it because he wants to encourage poor people to think big and succeed. In fact, many poor people have changed and pushed themselves to work hard but unfortunately, not all become successful. Mr. Kiyosaki is just expressing what he experienced during his young age but if we ask those who are really poor condition, I mean those who are really in the dip situation, we can assess that it was not the mindset making you rich but financial education as well. Meaning, they still need to spend more money for this, yet they don't have any to support it - they lose the opportunity.

Education is the only source through which uplifting can happen. This can be done by the government, because there are kids that stopped schooling and working to feed the family. At such situation the poor doesn't have anything to spend than thinking about the day's survival. Things could change and we need to support with proper direction which is the best one can do.

[bestcoins1]

Yes Very realistic difference. The poor and middle class work for money, while the rich tell their money to work for them.
actually investing does not have to be rich and poor, the most important thing is that the financial mindset must be changed. Fear of making mistakes means you are not ready to know the truth.

Usually people who are still afraid of mistakes will not do much to change themselves for the better because they always think about mistakes. Even though if only he wanted to try to do something without thinking about mistakes, in the end he would also be very good because he already knows which is the truth so he can sort it out so he doesn't make a mistake.

People prefer consumption over investment, because to show off their lifestyle on social media, people like this never think long term.

And people who prefer to spend their money in life without remembering to make an investment actually don't matter as long as that person is already rich and has made money work for him as you say. But if he is still in a poor condition, it is better if he is willing to struggle through his maximum efforts, including through investments that can benefit him in the future.