This is the 2nd part of the article which describes how average people and rich people think differently about money. If you missed Part 1 of the article, click here.
11) Average people think the market is driven by logic. Rich people think the market is driven by emotion and greed.
The rich see that human nature controls the market. Specifically human fear and greed control the actions of investors. Rich people leverage this knowledge to their advantage.
12) Average people live beyond their financial means. Rich people live within their means.
Rich people have enough money at the end of the month to live within their means.
13) Average people teach their kids how to survive. Rich people teach their kids how to become rich.
If kids understand wealth early on in their lives, they can more easily attain it later for themselves.
14) Average people stress out about money. Rich people find peace of mind in money.
Rich people have developed the mindset that money can make things a lot easier and find peace of mind in that knowledge.
15) Average people seek entertainment over education. Rich people seek education over entertainment.
The wealthy educate themselves on how to become more successful.
16) Average people think that the rich are snobs. The rich seek out other like-minded people to associate with.
The rich don’t have time for “doom and gloom”. They have to be positive and upbeat. So they seek out other wealthy people to associate with who are also positive and upbeat.
17) The average focus on saving. The rich focus on earning.
While the average spend their time clipping coupons, the wealthy focus on what they’ll gain by taking calculated risks. They put focused mental energy on where it belongs: the big money.
18) Average people play it safe with money. The rich take risks.
Sure there are bad investments that will lose money, but the rich know that they can go out and make more money.
19) Average people seek the comfortable life. Rich people seek uncertainty.
It takes guts and risks to become wealthy. The average aren’t comfortable with taking those risks.
20) Average people don’t connect wealth and health. The rich know money can save your life.
While the masses of average people debate over the health care system, the wealthy hire personalized medical care that is available 24 hours a day when they need it.
21) Average people think that the choice is between having a good family and wealthy. The rich believe you can have both.
The average use family as a way to validate why they’re not wealthy. The rich think that you can have both if your wealth is rooted in “love and abundance”.
This article described how average people think differently about money compared to rich people.
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