How Rich People's Think

Learn to Think and Act Like the Rich 

There is a certain fascination with the way the rich live their lives and amass their wealth. This could be because only a few of us reach that level of success where we no longer have to worry about money since we already have all the money we need. There has been numerous studies on the wealthy and what makes them tick, especially the wealthy who had humble beginnings. The mindset to earn money and the ability to make this goal come true in one’s lifetime is very interesting. 

What drives people to strive to earn and amass wealth and the secrets to achieving this goal is indeed a fascinating subject, and we may have the answers straight from the mouths of the wealthy themselves.


The rich prefer specific knowledge to traditional education.
A lot of outrageously rich people have shunned traditional education in favor of learning the things that interest them. Think Steve Jobs, who cut classes and sat in on classes that sparked his interests. What rich people know is the value of their time, they know what areas they are drawn to, so they know that they should not be wasting their time on things that will not bring them closer to their goals, traditional education included. It is also important to note that the rich take pride in knowledge, not education, and rarely on entertainment. Average people are consumers of entertainment, but rich people spend their free time educating themselves.


The rich know how to live within their means.
Warren Buffet, one of the richest men in the world and perhaps the most respected financial minds of this century is known for his modest way of living, despite his bank account. He has lived in the same house that he has lived in for decades and drives a modest car. This is not to say that the rich got rich by penny pinching. However, the mindset of living within our means is a mindset that every person should adopt. With it, we can avoid getting into debt and we can have enough wealth to keep us secure financially. The ability to delay gratification has long been touted by financial experts as the key to financial security. It also gives us the ability to enjoy the luxuries that we could not otherwise afford if we keep spending money as it comes in. This is a mindset that a lot of wealthy people operate in, and it has rarely failed them.


Rich people know that passion leads to wealth.
A lot of rags-to-riches stories occurred because a person was passionate enough about something to see it to full completion. Bill Gates, Steve Jobs and Richard Branson are just a few examples of people who were driven to financial success by passion. Steve Siebol, who wrote”How Rich People Think” said that while ordinary people earn their living by doing work they do not love, the rich follow their passion. Passion leads to a greater involvement with work and a better quality of work, which in turn gets rewarded with better financial returns. Of course, talent and other factors may come into play, but this mix of passion and perseverance has worked to the advantage of many wealthy entrepreneurs today.


Rich people are always up for a challenge. 
The average person is scared of taking financial risks, probably because he has more at stake compared to the billionaire next door. However, rich guys who started poor attribute their success to knowing when to take risks in business, and they are not afraid to fail. Donald Trump has failed in business several times, only to get up and become bigger and richer after every slump. Greater risks lead to greater rewards. Although it is not wise to gamble your life’s savings on one investment, it is perfectly reasonable to take wise, calculated risks that will deliver sound financial results.


The rich and wealthy are in a league of their own, but this doesn’t mean that we cannot take lessons from them. The mindset of living within our means, the ability to delay gratification, the courage to follow passion and take risks can be applied by anyone. These traits may not turn you into a millionaire overnight, but you can use them to take the first steps to a more secure financial future.

The secret to financial success is to have a wealthy mindset and be prepared to work for it. Most people just expect success to happen, what they fail to realize is that success comes to those who make it happen. This doesn’t mean you need to necessarily work harder, just smarter.

It is common knowledge in the business world that generally the top 5% (the wealthy) have a different mindset to the remaining 95% of the population. This is quite often referred to as the wealthy mindset, which basically refers to the fact that wealthy people think and act differently to the general population. The table below summarizes some of the key differences and helps to identify how you too can have a wealthy mindset.

The following table was published in a book titled “Life’s Greatest Opportunity” written by Virend Singh who is a successful diamond director in a well known network marketing company who teaches the concept of the wealthy mindset. It helps to highlight some of the common cognitive differences between the rich and the poor.

The Wealthy Mindset	The Poor Mindset
Have a delayed gratification mindset, settling for short-term pain for long-term gain.	Have an immediate gratification mindset settling for short-term gain for long-term pain.
A wealthy mindset is willing to take risks with the understanding that failure/losing is part of the process of winning. Hence, they are early adapters, taking advantage of a new opportunity before others realise its potential.	The general population avoid risk because of the fear of failure or loss. They wait to see what everybody else is doing, then do the same – by which time it is too late to capitalise on a new opportunity.
Have a positive attitude, using language such as: "If others can do it, so can I." "I’ll make time." "What’s it worth in the long term?"	Have a negative attitude, using language such as: "I can’t, it’s too hard." "I don’t have time." "I can’t afford it – it’s too expensive."
Are decisive – They are quick to decide and slow to change their minds. They know that their destinies are shaped in their moments of decision. Indecision leads to in-action which, in turn, leads to unfavourable results.	Are indecisive - they are slow to decide and quick to change their minds because, once they have decided, they start to worry if they have made the right decision. Fear, uncertainty and doubt are inherent in their personality
Seek opportunity. They want to develop, achieve and excel. They do what the majority are unwilling (not unable, just unwilling) to do. They realise that people who play it safe continually miss opportunities and seldom make progress.	Seek security. They desire a safe, secure profession / job, but such a thing is virtually non-existent today, and even if it was, it would provide little chance of attaining financial independence.
Take responsibility for their circumstances. They know that "when you choose the behaviour, you choose the circumstances". Hence they create their own circumstances by choosing actions that support their goals. The wealthy mindset attitude is “if it is to be, it’s up to me.”	Do not always take responsibility for their circumstances. When things aren’t as they would like them to be, they sometimes try to justify their situation. Some even blame others – the government, their employer, their teachers, parents/children etc.
Those with a wealthy mindset make it happen. They know that success must be summoned; it won’t come unbidden. They have plans. They can tell you where they are going and how they are going to get there.	The general population let it happen. Many have no definite plans for the future or they simply don’t execute their plans, hence they fit into someone else’s plans.
Understand and apply the law of 'Cause and Effect' – as you sow, so shall you reap. They know they must give to receive - e.g. one must give respect before they receive respect. One must give value to receive value.	They expect to receive value before they will give value.
Mind their own business. They build businesses and use the power of compounding / leverage to earn residual income.	Mind somebody else’s business. They work hard for somebody else trading hours for dollars by earning a linear income, paying up to 50% of their income in taxes.
See with their minds what others miss with their eyes, hence recognising potential where others don’t.	See only with their eyes, often missing opportunities for improving their circumstances in life.
Have a sense of urgency. All successful people are driven by sense of urgency to produce results.	They tend to procrastinate. They wait until all the conditions are right before taking action.
Have a sense of team and a common purpose. They believe in synergy – combining and sharing the work effort.	They do it all themselves, hence they don’t often achieve the big outcomes they aspire to.
Persist until they succeed. Like a child learning to walk, every time they fall down, they get up quickly and keep trying until they get it right.	Quit at the first sign of defeat. As soon as they encounter setbacks, they give up. They say “it’s too hard. It hurts too much. I give up”
They are results orientated and perform activities that produce the results they desire, resulting in a high quality of life. They plan their work and then execute this plan.	They are activity orientated, confusing being busy with progress. They are so busy being busy, that they lose sight of what they are trying to accomplish.
Have more money at the end of the month, i.e. they have money left over at the end of the month that they can invest or spend as they wish.	They live from pay cheque to pay cheque. More often than not their money runs out before the end of the month.
Focus on ‘quality of life’. They will retire in comfort, maintaining their standard of living and generally enjoying more free time and better then average health.	Focus on ‘standard of living’. Some will work their entire life. The majority will find that their standard of living will drop by 40-75%. When they retire they will struggle to make ends meet, depending on welfare or the goodwill of others for their existence.