21 Ways Rich People Think Differently

Many of us are beginning to see money in a whole new light.  The older we become, we are truly understanding the difference money truly makes in a person’s life – in a community’s life.  It’s been interesting being caught between the world of my childhood lack of financial literacy and working my adult years in the financial sector of our economy.  Just a total yin and yang of how to move, manipulate, grow, position and utilize money in ways that could never have been taught to me simply because my parents never had the knowledge to pass down.

Even Frank Ocean has an interlude on his album Channel Orange with his mother giving him a lecture on how he needs to decondition himself about importance of money.

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Original article by Mandy Woodruff for Businessinsider.com below:

World’s richest woman Gina Rinehart is enduring a media firestorm over an article in which she takes the “jealous” middle class to task for “drinking, or smoking and socializing” rather than working to earn their own fortune.

What if she has a point?

Steve Siebold, author of “How Rich People Think,” spent nearly three decades interviewing millionaires around the world to find out what separates them from everyone else.

It had little to do with money itself, he told Business Insider. It was about their mentality.

“[The middle class] tells people to be happy with what they have,” he said. “And on the whole, most people are steeped in fear when it comes to money.”

Read more: http://www.businessinsider.com/how-rich-people-think-differently-from-the-poor-2012-8?op=1#ixzz26Jt9cVaK

Average people think MONEY is the root of all evil. Rich people believe POVERTY is the root of all evil.

“The average person has been brainwashed to believe rich people are lucky or dishonest,” Siebold writes.

That’s why there’s a certain shame that comes along with “getting rich” in lower-income communities.

“The world class knows that while having money doesn’t guarantee happiness, it does make your life easier and more enjoyable.”

From Steve Siebold, author of “How Rich People Think.

Average people think selfishness is a vice. Rich people think selfishness is a virtue.

“The rich go out there and try to make themselves happy. They don’t try to pretend to save the world,” Siebold told Business Insider.

The problem is that middle class people see that as a negative––and it’s keeping them poor, he writes.

“If you’re not taking care of you, you’re not in a position to help anyone else. You can’t give what you don’t have.”

From Steve Siebold, author of “How Rich People Think.

Average people have a lottery mentality. Rich people have an action mentality.

Average people have a lottery mentality. Rich people have an action mentality.

(Photo by Erik S. Lesser/Getty Images)

“While the masses are waiting to pick the right numbers and praying for prosperity, the great ones are solving problems,” Siebold writes.

“The hero [middle class people] are waiting for may be God, government, their boss or their spouse. It’s the average person’s level of thinking that breeds this approach to life and living while the clock keeps ticking away.”

From Steve Siebold, author of “How Rich People Think.

Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge.

“Many world-class performers have little formal education, and have amassed their wealth through the acquisition and subsequent sale of specific knowledge,” he writes.

“Meanwhile, the masses are convinced that master’s degrees and doctorates are the way to wealth, mostly because they are trapped in the linear line of thought that holds them back from higher levels of consciousness…The wealthy aren’t interested in the means, only the end.”

From Steve Siebold, author of “How Rich People Think.

Average people long for the good old days. Rich people dream of the future.

Average people long for the good old days. Rich people dream of the future.

I Love Lucy screencap

“Self-made millionaires get rich because they’re willing to bet on themselves and project their dreams, goals and ideas into an unknown future,” Siebold writes.

“People who believe their best days are behind them rarely get rich, and often struggle with unhappiness and depression.”

From Steve Siebold, author of “How Rich People Think.

Average people see money through the eyes of emotion. Rich people think about money logically.

“An ordinarily smart, well-educated and otherwise successful person can be instantly transformed into a fear-based, scarcity driven thinker whose greatest financial aspiration is to retire comfortably,” he writes.

“The world class sees money for what it is and what it’s not, through the eyes of logic. The great ones know money is a critical tool that presents options and opportunities.”

From Steve Siebold, author of “How Rich People Think.

Average people earn money doing things they don’t love. Rich people follow their passion.

Average people earn money doing things they don't love. Rich people follow their passion.

“To the average person, it looks like the rich are working all the time,” Siebold says. “But one of the smartest strategies of the world class is doing what they love and finding a way to get paid for it.”

On the other hand, middle class take jobs they don’t enjoy “because they need the money and they’ve been trained in school and conditioned by society to live in a linear thinking world that equates earning money with physical or mental effort.”

From Steve Siebold, author of “How Rich People Think.

Average people set low expectations so they’re never disappointed. Rich people are up for the challenge.

“Psychologists and other mental health experts often advise people to set low expectations for their life to ensure they are not disappointed,” Siebold writes.

“No one would ever strike it rich and live their dreams without huge expectations.”

From Steve Siebold, author of “How Rich People Think.

Average people believe you have to DO something to get rich. Rich people believe you have to BE something to get rich.

Average people believe you have to DO something to get rich. Rich people believe you have to BE something to get rich.

BarackObamadotcom via YouTube

“That’s why people like Donald Trump go from millionaire to nine billion dollars in debt and come back richer than ever,” he writes.

“While the masses are fixated on the doing and the immediate results of their actions, the great ones are learning and growing from every experience, whether it’s a success or a failure, knowing their true reward is becoming a human success machine that eventually produces outstanding results.”

From Steve Siebold, author of “How Rich People Think.

Average people believe you need money to make money. Rich people use other people’s money.

Linear thought might tell people to make money in order to earn more, but Siebold says the rich aren’t afraid to fund their future from other people’s pockets.

“Rich people know not being solvent enough to personally afford something is not relevant. The real question is, ‘Is this worth buying, investing in, or pursuing?'” he writes.

From Steve Siebold, author of “How Rich People Think.

Average people believe the markets are driven by logic and strategy. Rich people know they’re driven by emotion and greed.

Average people believe the markets are driven by logic and strategy. Rich people know they're driven by emotion and greed.

Investing successfully in the stock market isn’t just about a fancy math formula.

“The rich know that the primary emotions that drive financial markets are fear and greed, and they factor this into all trades and trends they observe,” Siebold writes.

“This knowledge of human nature and its overlapping impact on trading give them strategic advantage in building greater wealth through leverage.”

From Steve Siebold, author of “How Rich People Think.

Average people live beyond their means. Rich people live below theirs.

“Here’s how to live below your means and tap into the secret wealthy people have used for centuries: Get rich so you can afford to,” he writes.

“The rich live below their means, not because they’re so savvy, but because they make so much money that they can afford to live like royalty while still having a king’s ransom socked away for the future.”

From Steve Siebold, author of “How Rich People Think.

Average people teach their children how to survive. Rich people teach their kids to get rich.

Rich parents teach their kids from an early age about the world of “haves” and “have-nots,” Siebold says. Even he admits many people have argued that he’s supporting the idea of elitism.

He disagrees.

“[People] say parents are teaching their kids to look down on the masses because they’re poor. This isn’t true,” he writes. “What they’re teaching their kids is to see the world through the eyes of objective reality––the way society really is.”

If children understand wealth early on, they’ll be more likely to strive for it later in life.

From Steve Siebold, author of “How Rich People Think.

Average people let money stress them out. Rich people find peace of mind in wealth.

The reason wealthy people earn more wealth is that they’re not afraid to admit that money can solve most problems, Siebold says.

“[The middle class] sees money as a never-ending necessary evil that must be endured as part of life. The world class sees money as the great liberator, and with enough of it, they are able to purchase financial peace of mind.”

From Steve Siebold, author of “How Rich People Think.

Average people would rather be entertained than educated. Rich people would rather be educated than entertained.

Average people would rather be entertained than educated. Rich people would rather be educated than entertained.

Kim Bhasin, Business Insider

While the rich don’t put much stock in furthering wealth through formal education, they appreciate the power of learning long after college is over, Siebold says.

“Walk into a wealthy person’s home and one of the first things you’ll see is an extensive library of books they’ve used to educate themselves on how to become more successful,” he writes.

“The middle class reads novels, tabloids and entertainment magazines.”

From Steve Siebold, author of “How Rich People Think.

Average people think rich people are snobs. Rich people just want to surround themselves with like-minded people.

The negative money mentality poisoning the middle class is what keeps the rich hanging out with the rich, he says.

“[Rich people] can’t afford the messages of doom and gloom,” he writes. “This is often misinterpreted by the masses as snobbery.

Labeling the world class as snobs is another way the middle class finds to feel better bout themselves and their chosen path of mediocrity.”

From Steve Siebold, author of “How Rich People Think.

Average people focus on saving. Rich people focus on earning.

Siebold theorizes that the wealthy focus on what they’ll gain by taking risks, rather than how to save what they have.

“The masses are so focused on clipping coupons and living frugally they miss major opportunities,” he writes.

“Even in the midst of a cash flow crisis, the rich reject the nickle and dime thinking of the masses. They are the masters of focusing their mental energy where it belongs: on the big money.”

From Steve Siebold, author of “How Rich People Think.

Average people play it safe with money. Rich people know when to take risks.

“Leverage is the watchword of the rich,” Siebold writes.

“Every investor loses money on occasion, but the world class knows no matter what happens, they will aways be able to earn more.”

From Steve Siebold, author of “How Rich People Think.

Average people love to be comfortable. Rich people find comfort in uncertainty.

For the most part, it takes guts to take the risks necessary to make it as a millionaire––a challenge most middle class thinkers aren’t comfortable living with.

“Physical, psychological, and emotional comfort is the primary goal of the middle class mindset,” Siebold writes.

World class thinkers learn early on that becoming a millionaire isn’t easy and the need for comfort can be devastating. They learn to be comfortable while operating in a state of ongoing uncertainty.”

From Steve Siebold, author of “How Rich People Think.

Average people never make the connection between money and health. Rich people know money can save your life.

Average people never make the connection between money and health. Rich people know money can save your life.

While the middle class squabbles over the virtues of Obamacare and their company’s health plan, the super wealthy are enrolled in a super elite “boutique medical care” association, Siebold says.

“They pay a substantial yearly membership fee that guarantees them 24-hour access to a private physician who only serves a small group of members,” he writes.

“Some wealthy neighborhoods have implemented this strategy and even require the physician to live in the neighborhood.”

From Steve Siebold, author of “How Rich People Think.

Average people believe they must choose between a great family and being rich. Rich people know you can have it all.

The idea the wealth must come at the expense of family time is nothing but a “cop-out”, Siebold says.

“The masses have been brainwashed to believe it’s an either/or equation,” he writes. “The rich know you can have anything you want if you approach the challenge with a mindset rooted in love and abundance.”

From Steve Siebold, author of “How Rich People Think.

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PLEASE…What are your thoughts?  Anyone of these stand out to you?  Anyone of these just simply not true?  True?  Talk to me!

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19 thoughts on “21 Ways Rich People Think Differently

  1. I think that Rich people, often times are miserable. Yes money rules the world, but as someone that took at 50% pay cut to do what I love, I wouldnt trade it for the world. I’d rather be happy than to be rich…because I truly believe that in many situations people choose 1 or the other. I agree with your points about how they think differently I am 100% in agreement with the points in the article, I just dont think that being wealthy in money and items is a virtue or something to strive for. So I guess I am destined to be in the middle class forever….*sigh*

    • Agreed, happiness trumps money – hands down. I’m truly considering taking a massive pay cut to do something that matters to me, BUT I think we can actually have both. I don’t see a problem with striving for the freedom that money can grant a person. It’s all about how it’s used as a resource. It’s a tool, definitely not a virtuous thing in and of itself. I actually think that the path to true riches lies in following your interests/passions. It’s a concept I’m testing 😉

    • Miss Maggie-
      I agree that rich people are often times miserable, but I would like to add that poor people are often times miserable as well. I applaud you for taking a pay cut to do what you love. I too, am a young entreprenuer transitioning from corporate America into my own corporation, and in the process taking a substantial pay cut. In my case it’s the automobile industry because I love cars. If I were to stop and just run one shop then, like you, I would be destined to be middle class forever. However, if I were to expand and run more than one shop, let’s say half a dozen, then I would still be doing what I love; I’d just be doing it on a larger scale! Just some food for thought. 🙂

      Isom, Thank you so much for this. It’s much needed encouragement while going through a storm. This time literally, as the hurricane has put a huge damper on business in Tampa. Thank you.

      • Thx for the comment man. You already see the picture and I’m grateful to be surrounded by people that are courageous enough to break out of their comfort zones to chase their dreams and passions. Both of you inspire me. I even think Ms. Maggie is going to be more successful than she even envisions simply because she IS chasing her dream, which is more than most can say about themselves. Rich isn’t necessary, but comfortable is more than within our grasps.

  2. Average people believe the markets are driven by logic and strategy. Rich people know they’re driven by emotion and greed.

    This is the one that hit me the hardest. I have never thought of it like this.

  3. My friend and I were just discussing this earlier…I don’t believe money =happiness but I do think it makes things alot easier and less stressful. Some of my best memories of my Mom were when we were dirt poor and had to “make do” on nothing and that really taught me that I want my kids to have memories of me and TIME spent rather than of things and MONEY spent. Great blog!

    • Agreed. Def doesn’t equal happiness, but it can take a good amount of stress out of the equation. If more of us were financially secure, it could directly lead to having more time to spend with our loved ones. Time is without a doubt our most valuable asset.

  4. “Average people focus on saving. Rich people focus on earning.”

    I believe the average people don’t even save, they live paycheck to paycheck. The rich saves and also earns thru investments. Also rich people knows how to make money work for them and not for them to work for the money.

    Great article!

    • True. There are definitely a ton of those as well. You’re right, probably more than not. It’s no way to live, and I think we can help get that information out there. Many people live that way simply because they’ve never been taught or shown another option.

  5. I actually read this article prior to seeing it posted here, and I felt some kind of way about the things that were said. I do tend to think that becoming rich in most cases involved some dishonesty, greed and lack of empathy. I don’t believe that “rich people pursue what they love.” In most cases, that is simply not true. They pursued what they thought would lead them to wealth, some found wealth in pursuing what they loved, but I think that’s the exception. I agree that rich people tend to take risks more so than the middle class person, but many of the differences he lists are false generalizations.

    I also tend to think rich people are lonely and unhappy, as well, because their money isolates them – and not in a good way.

    The article is interesting and thought-provoking nontheless.

    • Thx for commenting. I feel there’s so much to potentially say, but basically I think that seeing people with money as mostly lonely and unhappy is a false generalization as well. I also think this is what many without money has taught their kids. I’m NOT saying your parents did this or that they didn’t have money. I have no clue about your background. I know my father, a single father on a military salary, didn’t have much in the way of finances to pass down to my brother and I. What I am saying, is that it’s not unexpected for generations of people that never had access to certain opportunities that lead to financial freedom marginalize the importance of financial prosperity.

      On top of that, we also marginalize the people that have been able to grow past the economic conditions of their youth. Since we, their own community, have ostracized them, we see them as cutoff and alone. I think many of them also feel the same way.

      This only takes into account “new money”. There’s a whole community of folks out there that have had money, influence, options, connections, resources, AND the knowledge of how much better of a position that puts them in in this game of life. THOSE people are both happy and unhappy. They’re successful and some are failures. Some are able to take their position and make the most of it, while others will forever live off a credit card cause they’ve never had the motivation to do any better. Why? They already have everything the rest of the country is working for. There’s an entire demographic of these people.

      Guess what I’m trying to say is that it’s dangerous to broadly generalize any group of people – the rich/wealthy included. And the more “silver spoon” people I meet, the more I realize how much I never knew about them at all. But it’s fascinating to keep learning.

      • When I said, “I tend to think that rich people are unhappy,” that statement is a far cry from a generalization. It’s actually based on a combination of what “I” think as far as how the rich are portrayed in the media and with respect to those I’ve gotten to know personally. I am not saying you can’t be happy and wealthy, but like I said, I feel having money isolates you because many don’t trust people because they have to always worry about whether people are there for them or their money. Also, when you’re rich, money and making more of it tends to consume you. Moreover, rich people don’t have a whole lot of spare time, so often their families take a backseat to their delusions of grandeur. Also, most strive to maintain that lifestyle sometimes by any means necessary.

        I come from a lower middle class background. We weren’t rich, but we weren’t poor either. I was able to travel to many parts of the country and I grew up in a house, not an apartment with 2 parents. Of course, I strive to do better. Becoming rich would be great. Who would pass up the opportunity to become wealthy? But, the difference between me and most rich people is I find happiness in having loving friends and family and hopefully one day, a lucrative career, not trying to get rich. If I get rich, great. If I am simply comfortable, that’s fine too. But, my time and energy won’t be focused on getting rich, it will be focused on doing what I enjoy and living.

        Some people are happy NOT being rich, and aren’t the least bit jealous of people with money. There are teachers and secretaries who are happy doing what they do. I can’t teach my kids to view rich people as unhappy nor would I make being rich seem like a negative thing. I CAN however teach them that money comes and goes, it isn’t everything, and it alone will not lead to happiness. Neither of us is foolish because of the way we view money.

      • It’s still a summary based on rich people you know and the media. A small cross section. And we all know about the accuracy of media portrayal. I’m not saying they’re all happy by any means. I think if you take a cross section of any demographic of people (poor, rich, wealthy, foreign, domestic, Californians, Burger King workers, whatever), you will find a percentage of happy, unhappy, struggling, satisfied, and completely content individuals.

        I absolutely agree with you that we should be more focused on what we enjoy doing rather than chasing the dollar above all else.

        Currently, I don’t believe our ultra-capatalistic society is conducive to a person earning a decent wage while pursuing what it is they enjoy. But I think that’s changing. I think that’s what tomorrow is going to look like. A world driven by people that have learned how to turn what they enjoy into a very comfortable lifestyle defined both by how they spend their time, as well as the lack of day to day worries around their financial security.

        Basically, I think we can have both. But in order to get there, we have to first believe we can have both.

        You’re absolutely right – money alone will not lead to happiness.

  6. Most of us “unconsciously” generalize having money as the “root of all evil” or in other words a “negative” given our previous teachings and experiences. It isn’t a common occurrence we honestly don’t know what it feels like to be wealthy “in most cases” because we haven’t figured out what it means to be “rich” …first. An example would be “rich” broke athletes. Becoming either of the two, rich or wealthy, is a process in which you must recondition your mind to know what you believe is relevant to both. The rich will accomplish what it takes to achieve a specific lifestyle to be rich “today” and the wealthy are living that lifestyle. Only rich people live based on what they have, in contrast, the wealthy live on what is to become of what they have. An example, the wealthy don’t commit suicide over losing millions only the rich. It’s a lifestyle…….if you lost your $50k car in an accident, would you do the same? (“take your life”) Or, since that was your specific lifestyle to “feel” rich by owning the car to begin with, wouldn’t you just go buy another “today” to feel good? The difference is instant gratification……to feel…rich, but what are you trying achieve financially? To live a “wealthy or rich” lifestyle?

    Thanks for the topic, I look forward to more….

    -What did you do today? -1life

    • Agreed sir. We regurgitate what we’ve been taught. You’re right that I would like a more wealthy lifestyle. And not necessarily a “ball so hard” lifestyle, but one where my money makes more money than my lifestyle needs so that no matter what I’m doing, I’m always accumulating and in a position to help my family and others get to the same place. I want enough financial freedom to own my time. I want that for anyone that wants it for themselves. And I plan on getting there. This is my one time to get it right…

  7. This is an insightful post – I really like the Siebold’s mindset: “If you’re not taking care of you, you’re not in a position to help anyone else. You can’t give what you don’t have.” This has been at the core of my philosophy for some time now.

    Also, the fact that emotions and greed drive the market – this is a gold mine waiting to be dug – there are many social media tools and analytics that are beginning to gauge people’s emotions by mining data from social sites like Twitter, Facebook, etc. If these tools end up being accurate, the software will be something of a alchemist dream – the formula to forge gold in computer code.

  8. This post speaks to me in a most personal way, which is why I will have to occasionally return and review. It helped me to reassess and readjust. I had no financial concerns as a child; I acquired a marvelous education and became a self-sustaining woman; then, I lost everything. I know, now, that while I would much rather be miserable with money than without it — it is not absence or presence of money, alone, that makes a person unhappy or happy. Yes, we can read this sentiment just about anywhere, but a real-life encounter is what it took to make it ring true for me.

    I believe our choices are often more varied and fluid than we know, and our material needs, less rigid. As I read elsewhere in your blog, money simply offers us “options” we might not have had, otherwise. Though I am not a Christian, I am more fascinated than ever by the Bible’s assertion that it is “the love of money” that is root of all evil, as opposed to simply money, itself. I believe this distinction is “key,” and that money, in the right hands, utilized with the right intentions, can be a very, very good thing.

    Thank you, again, for visiting my blog, along with your encouraging words, but thank you, as well, for giving me the opportunity to visit your wonderful space.

    • I’m so glad you were able to get something from the article. I’m simply documenting my journey as well and hoping like-minded individuals find one another. Many of us feel alone in a world where our stories are so similar. We all can learn from one another.

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