A rich person’s mindset is one of hard work, discipline, and frugality. They understand that a dollar saved is worth far more than a dollar earned, and they are always trying to set themselves up for the future.
Meanwhile, poor people have the mindset of instant gratification; they spend all their money as soon as they get it and look for bargains at any cost.
Here are eleven significant differences between the mindset of a rich person and the mindset of poor people.
Table of Contents
11 key mindset differences between the rich and the poor
Rich people think long-term.
Rich people understand that life isn’t about getting through the next day or even the next year. It’s about building something that will last for generations–like a successful business or a family dynasty.
They know they’ll be able to enjoy their life’s work long after they’re dead, while poor people think that we can all live on ramen noodles and save money by sleeping under our cars.
Rich people save money.
Rich people have the mindset that they must save money–that there’s no point in spending their money just because it’s there. They think that if they can manage to squirrel away a little bit every month, it will help them retire early and live well.
Poor people believe that if they can spend all the money, they get as soon as they get it, what’s the point in having it? They think that there’s no such thing as an emergency fund–that anything bad that happens can be taken care of by using a credit card.
Rich people invest money.
Rich people have the mindset that if they can just get a little bit more money, a little bit at a time, then they’ll be able to start investing it in something like real estate or the stock market. They think that the harder they work, the more money they’ll get.
Poor people have the mindset that there’s no point in saving–it’s just going to get taken away from them anyway. Even if they put it by the door, someone will come along and take it for themselves next week.
Rich people manage their time better.
Rich people understand that the most essential part of their life is managing their time. They know that if they can make every waking moment count, then they’ll be able to achieve more. So rich people spend hours every week doing things like managing their expenses or setting up retirement plans.
Poor people don’t do any of this. Instead, they manage their time by watching TV, using up all their minutes on a cell phone plan, and talking for hours on the phone.
Rich people are willing to work harder.
Rich people have a hard-working mentality and understand that the money they earn results from their own labor. Therefore, they take pride in working hard.
Poor people have the mindset that they don’t have to work at all; they just work at the lowest-paying job they can find to get free stuff. So they refuse to put up with any hard work.
Rich people have a desire for more money.
Rich people have the mindset that they need to be wealthy–that they must make a lot of money to be happy. They’ll do whatever they have to do to be able to make more money.
Poor people think that being poor is a virtue and that making money is an evil thing–that anyone who earns money must be greedy.
Rich people understand that money is important.
Rich people know that being poor will make them unhappy and that being wealthy will bring them joy and satisfaction. This is because they understand the concepts of delayed gratification and rewards for hard work.
Poor people have the mindset that money is irrelevvant– that it’s not possible to be wealthy and poor at the same time. They think that if someone makes lots of money, they must have done something wrong.
Rich people are more likely to take risks.
Rich people understand that the only way to be wealthy is to take risks. They know that without taking risks, they’ll never be able to do anything significant or build anything worth having.
Poor people understand that the only way they can be happy is by not taking risks. They don’t want to work hard or make any sacrifices because they’re just going to lose their money anyway.
Rich people understand that sacrifice is necessary.
Rich people understand that there are things that must be sacrificed to achieve anything significant or build anything important. They know that being wealthy requires them to work hard and sacrifice now to get rewards later.
Poor people have the mindset that being rich means having lots of money without any effort. Therefore, they think they can take their time, enjoy themselves, and not worry about anything.
Rich people don’t believe in luck.
Rich people understand that being rich is about making a plan and having the discipline to stick to it. They realize that they have to work hard and be willing to sacrifice to get their rewards.
Poor people think that the universe will make sure that they keep getting rich–that no matter how hard they work, it’ll just happen. They don’t realize that hard work is everything.
Rich people live within their means.
Rich people understand that the only way to be wealthy is to manage their money wisely and live within their means. They save up as much money as they can so that they can have a little bit more when it’s needed.
Poor people understand that getting rich is about spending every dime they’ve got on a big-screen TV, a fancy car, and the latest clothing styles. They don’t realize that it’s essential to have some money saved up for when you need it.
Rich vs. poor mindset explained
Here’s the thing: It all boils down to the different mindsets that rich and poor people have.
Rich people know what it takes to be wealthy, and they’re willing to make it happen. Poor people don’t care about wealth.
They have the mindset that nothing they do matters because they don’t have a lot of money. They refuse to work hard or make sacrifices so that they can be happy and wealthy later. That’s the mentality of the poor.
But that’s not how life works.
Wealth is earned by taking risks and sacrificing. You can’t have wealth without hard work and a smart plan. If you want to be wealthy, you need to develop a mindset for wealth.
You need to start thinking of wealth as a trophy–a goal that you’re willing to work towards and sacrifice for. If you have the right mindset, everything else will fall into place.
If you’re looking for a mindset that will make it happen, then this is the mindset for you.
Wealth is a mindset
You need the right mindset, and the first step is to think about wealth as a trophy.
That’s a compelling idea.
Wealth is something that you can work towards. It’s something you choose to be–not something that happens to you.
And we have a great example to help us understand this point of view: The rich.
The rich are wealthy because they’ve had the mindset that wealth is a goal. They’ve seen what wealth can do, and they’ve committed themselves to build it into their life.
They didn’t just happen to be wealthy. They worked hard and sacrificed to build wealth into their lives.
It’s the same way with kids who win trophies at the end of a season. They didn’t just win that trophy because they were lucky. They worked hard and sacrificed to get that trophy.
The result of what they did has made them rich. They’ve won a major trophy in their life, and they’ve become very wealthy because of the way they viewed money.
That’s what it would be like if you were rich. You would work hard and sacrifice to become wealthy, and then you’d be rewarded with a great trophy.
The first step is to think about wealth in the same way that the rich or a child wins a trophy. Wealth is a reward for how you’ve lived your life, and it’s something you can work towards.
And once you have this mindset, it changes everything. It makes it seem like you’re already wealthy because you’ve worked and sacrificed for it. You deserve to be rewarded for all the hard work and effort that you’ve put into your life.
Your current financial state is a choice.
You choose where you are at right now, and you’re the only one who can choose a different path. There are no valid excuses for not reaching your potential. Everyone has the same 24 hours in a day. It’s up to you to make the best use of them to reach your goals.
Are you ready to take action?
If you are ready to change your life, change the way you think. Constantly work to improve yourself in every way possible. The only way to finally get where you want to be is to take action, which means changing your mindset.
