What Are Some Of The Key Notable Differences Between The Rich & The Poor?
In this post, I'm going to share with you some of the key🔑 notable differences that I've noticed between the rich & the poor.
But before I proceed, let me clarify this real quick;
When I say rich or poor, I don't necessarily mean the amount of money💰 that you have in your bank account.
But instead, being rich or poor is a state of mind🧠 i.e. there's some people who seems rich – but in reality, they have a poor mind-set.
For example, a lottery winner might get ‘huge success' all of a sudden – he/she might become ‘rich' temporarily i.e. based on the amount of money that she wins, but if she has a poor mind-set, she'll soon go back to her initial position.
On the contrary, there are some people who don't have a lot of materialistic things, but they're rich mentally.
And those people tends to find a way to build something of great significance, even when they reach rock bottom at some point.
(Just wanted to clarify this real quick)
Now that I've cleared this out of the way, let me jump🏃♂️ straight into the main focus of this post.
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1. Rich People Invest In Assets, Whilst The Poor Invest In Liabilities
This is really a big one i.e. most wealthy people whom l know invests in assets like stocks📉 & real estate🏡, so that their money can grow and build more wealth in the long term.
Think of the Buffets, the Gates, the Bezos’, the Musks, etc. – they all invest in money generating assets.
And that's why their wealth grow exponentially over time – coz these assets tends to appreciate in value.
On the contrary, most poor people invests in liabilities – which depreciates in value.
For example, most luxurious cars🚘 depreciates in value as soon as they leave the dealership – and most people aren't aware of that.
For this reason, your 100k ‘investment’ that you spent buying a nice car might be 30% less in just a matter of few months.
But most poor people aren't aware of that – so they use all their money to buy these depreciating assets – trying to look rich on social media.
But in reality, the real wealthy people don't even buy flashy items like that.
Or if they do, they'll be using capital gains that they got from their investments, rather than using their primary/seed income.
2. Rich People Thinks Long Term🔍, Whereas Poor People Are Short Sighted👀
Another key difference that I've noticed is that, the rich thinks long term i.e. decades, or even generations ahead.
For this reason, they plant good seeds now, so that their great grand children will still be able to live a good life.
That's why you see most wealthy families stays wealthy for ages, because they always plan ahead for their future generations.
On the contrary, most poor people are short sighted i.e. they only think about NOW!
For this reason, they look for instant gratification things which only benefits them now, instead of thinking about how their lives will be 10 years from now, 20 years from now, etc.
For this reason, they stay poor forever, because they don't plant good seeds now that will help them to yield better lifestyles in the future.
This reminds me of a guy who was given some farming equipment, so that he can tap into tree plantation industry.
However, he decided to sell the equipment & eat the money now, simply because he didn't like the idea of waiting 5 years before he start reaping the rewards of the project.
But had he decided to wait for at least 5 years, he would've probably built a great estate that would even benefit his great grand children.
3. The Rich Finds A Way To Make Their Money Work For Them, Whilst Poor People Trades Their Time For Money
‘If you can't make money in your sleep😴, you'll be poor forever'
The main reason why most people remain poor is that, they trade their time for money.
But there's a caveat to this i.e., we only have 24 hours in a day – and let's be honest, you can't be able to work all the 24 hours.
So for this reason, there's a maximum cap on the amount of money that you can make if you're trading your time for money.
On the contrary, the rich don't trade their time for money.
Instead, they find a way to make their money work for them whilst they are asleep – thus, allowing them to make passive income.
This is mainly done through investing in passive businesses, stocks, real estate, etc.
For this reason, they're able to grow their wealth without having to actively work for money.
Now, you might be saying;
‘The rich have some extra money to invest – which, I don't have!'
I get it! I know where you're coming from!
But what I've realised is that, investing is a habit that you can form even if you're still making small amounts.
The key is to make a commitment to yourself that, you’re going to deduct X amount from your salary every month & use it for investing.
Or you might even start a side hustle, so that you can find some extra money to use for investing.
4. Rich People Have Good Empowering Habits, Whilst The Poor Don't
‘Success is not an act, but a result of good empowering habits, practiced every day’.
Do you know what determines how far you'll reach in life?
It's actually your daily habits!
When you see someone successful, you should know that he/she practices good habits on a daily basis – and those habits creates that success over time.
And that's what most rich people do!
They eliminate all distractions like social media, tv shows, etc. – and they focus their time & energy on what's more important i.e. their business or their purpose.
And over time, their actions will show-up in their bank account as well.
On the contrary, most poor people don't have good empowering habits.
For this reason, they do things that aren't going to lead them to the life that they want – and most people aren't even aware of that.
If you sit there playing video games every day, what do you think your life will look like 10 years from now?
5. Rich People Believes In Themselves, Whilst The Poor Have Disempowering Limiting Beliefs
Another thing that I've noticed is that, the rich believes in themselves.
For this reason, they aren't afraid to go after their goals & dreams, because they have a huge belief in themselves that they're capable of accomplishing those things.
Although they might experience some obstacles along the way, they know for sure that they're worthy of great things in life.
On the contrary, most poor people have disempowering limiting beliefs.
They always have negative stories that they tell themselves – and for this reason, they lack the confidence to go after their dreams.
And I've noticed that, some people have the potential to change the world🌏 – however, they don't have the guts to take the first step.
6. The Rich Values Their Time🕐, Whilst Poor People Don't
‘We all have 24 hours in a day. But what separates people is how they use their 24 hours'
The rich also values their time a lot, since they view time as a limited resource.
For this reason, they try to use their time wisely, since they fully understand that time is a very important resource that can't be recovered once lost.
On the contrary, most poor people don't value their time as much.
For this reason, they spend their time on useless things that don't move their life forward.
For example, if you spend 2 hours every day on social media, that's actually a month's worth of time over the course of the year – meaning, 1/12 of your year is spent wasting time on instant gratification things.
And you wont be able to get back all that lost time once it's lost!
7. Rich People Are Risk Takers, Whilst Most People Aren't
Most rich people are also risk takers.
And for this reason, they aren't afraid to try out different things – because they know that in the process of trying, they might find a winning formula.
That's why they're able to find great money making opportunities – because they aren't scared of trying different things.
On the contrary, most poor people likes to ‘play it safe’ – because they're afraid of taking risks.
And for this reason, they aren't able to explore great opportunities, because they're too stuck in their comfort zone.
NB: When I say risk taking, I don't mean doing some dummy things with your money – like trading some crazy unknown currencies. But I mean, taking educated risks that makes sense.
8. Rich People Are Long Life Learners📚, Whilst The Poor Aren't
Rich people are also long life learners – and for this reason, they're able to get new information & ideas which are helpful for growing their businesses.
They do so by reading books, listening to podcasts, investing in courses, seminars, events, etc.
Thus, they're able to continuously grow and learn some new staff.
On the contrary, poor people aren't willing to continue learning.
Once they leave the school gates, they’re like; ‘I'm done learning'.
And for this reason, they get stuck at the same level, since they wont be growing as beings.
But the billionaire Warren Buffet once said;
‘The more you learn, the more you earn'
So if you're not learning new concepts & strategies, then how do you think your bank balance will grow?
9. Rich People Takes Full Responsibility Of Their Lives, Whilst The Poor Always Blame External Factors
Last but not least, poor people always points fingers on external things i.e. they always blames the government, the company, their upbringing – you name it!
For this reason, they sit there – waiting for these factors to change.
But the problem is that, you have less control over all these things – thus, it's difficult to change them.
So if you sit there, waiting for these things to change, you might wait your whole life for a day that doesn't arrive.
On the contrary, most rich people always takes full responsibility & ownership of whatever is happening in their life.
Instead of wasting time – blaming external factors, they take action & do whatever is necessary to change their life i.e. they are dream chasers.
Wrapping Up
So these are some of the key differences that exists between the rich & the poor.
Let me know in the comments section, some of the key differences that you've noticed amongst these people.