7 Ways the Rich Think Differently About Money
We tend to believe that the wealthy have special capabilities that we lack. Either they are smarter than we are, are generally lucky, were born rich or were exposed to opportunities that are not available to us.
While indeed some wealthy people did start with some advantages, the thing that truly sets them apart from their non-wealthy counterparts, and what keeps them wealthy, is their way of thinking about money.
Wealth begins in your mind. Here are 7 ways the rich think that you can adopt to begin to develop a wealth mindset.
1.They understand that money should work for you (as opposed to you working for money). The key to staying wealthy is to put your money to work. The money you earn needs to have a way to grow, or else you will have to continue working to generate more. To quote Warren Buffett, “If you don’t find a way to make money while you sleep, you will work until you die.”
“If you don’t find a way to make money while you sleep, you will work until you die.” - Warren Buffet
Begin to think of ways you can strategically invest to make the most of your current income so that you begin your journey to independence from your salary.
2.They value time over money. Time is finite – and money can’t buy it back. We often seem to forget this fact and squander the time we have. In the book “Four Thousand Weeks: Time Management for Mortals,” the author, Oliver Burkeman, stresses the finitude of life by laying it out plainly. I.e., if you are lucky enough to live up to the age of 80 years, that’s a mere 4,000 weeks of life. How many of yours are past and how are you spending what remains? Appreciating the preciousness of time means the wealthy focus on finding ways of freeing up more of their time. This could be by (as earlier mentioned) investing to make their money grow, outsourcing or delegating work and learning to more efficiently manage their businesses, money and lives. Begin to think of ways you can make the most of your resources so that you have time to do the things that matter the most to you.
3.They see money as an opportunity, not as a goal. Wealthy people are able to view money in terms of the possibilities it creates for freedom and stability for themselves and their families. Every shilling you have can either be used to create a future or be spent on stuff. Money is merely a tool – learn to use it to propel you towards the things you want to achieve, instead of thinking of it as a goal.
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“The goal isn't more money. The goal is living your life on your own terms.” –Chris Brogan.
4.They appreciate that health is the most important form of wealth. You have undoubtedly noticed when reading about the routines and habits of the world’s richest individuals that most of their days start with a workout of sorts. Wealthy people respect their bodies and take their nutrition and fitness seriously. A healthy body equals a healthy mind. Be mindful of your diet and maintain at least a moderate level of activity.
5.They take calculated risks. No risk, no gain. Wealthy individuals are not deathly afraid of taking risks. Instead, they learn to take calculated risks i.e., when making investment decisions, they do their research (or have professionals do it for them), estimate the probability of loss, determine if the investment would tie in with their specific goals and then decide if the risk is worth taking. They never risk more than they can afford to lose, but they appreciate that risk is an inevitable part of growth. Be ready to take some risks and arm yourself with the tools and education necessary to help you determine what level of risk would be appropriate for you to take.
6.They are willing to delay gratification. Being able to forgo immediate pleasure and set aside money for saving and investing is key to successful financial growth. A common characteristic that wealthy people have is that, they have such a clear vision of what they want to achieve, that they are able to sacrifice short-term comfort for long-term gain. Begin by creating a clear vision of what your goal is and then be willing to make short-term tradeoffs to achieve this goal.
“Don’t give up what you want most for what you want now.” – Richard G. Scott
7.They continuously invest in themselves. Investing in yourself is the process of making yourself more knowledgeable, skilled and proficient in different areas. For the wealthy, learning never ends. They are always willing to upskill themselves in their industry and areas of their interest. You can begin investing in yourself by finding a mentor to show you the ropes in your field, enrolling in programs that will upskill your personal life, further your education etc. Always be levelling up!
To attain wealth, you need to start thinking the way rich people do. Get used to thinking differently. That will require a shift in your mindset (Read, “Practical Steps to Developing a Wealth Mindset,” HERE). Mindset shifts often require time to cultivate as changing your thinking patterns and overcoming your limiting beliefs is quite a task.
The first step is to begin to believe that you create your own life, rather than believing that life happens to you.
You are the master of your destiny – create the reality you believe you deserve!
If you’d like to talk about the challenges you are facing with your mindset about money, you can book a free 30-minute ZOOM call with me HERE.
