THE RICH VS THE POOR MINDSET, Which one do you have?

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THE RICH VS THE POOR MINDSET, Which one do you have?

How does the mindset of the rich differ from the mindset of the poor?

  1. Poor teach their children to become job seekers while rich people train their children to become job creators

When I was below 25 years of agent, I had a different mindset, which was go to school, get good grades, get a good job, work hard for a promotion and wait for pension, this was the mind set of being born poor

The poor people are the ones who take their children to school purposely to get a job after school but the rich people take their children to school to learn the skills which they can apply to their business

The rich train their children to become entrepreneurs while the poor teach their children to become entrepreneurs

So when I discovered that by becoming an entrepreneur I will enjoy many benefits and even employ these first class students from poor families,

I choose to start a business and employ these job seekers who are trained to be employed

Go to school, get a good job, save money and wait for retirement pension is a bad idea

  • Rich people know how to use money to make more money

The rich people train their kids how to use money to develop wealth; they know how to hire new members to help them make more money

  • The poor save money while the rich invest

There is a difference between saving and investing, saving is the difference between your income and expenditure

While investing is putting your savings into a productive activity that will generate profits or returns

Saving alone won’t make you rich so you need to invest money in profit generating assets

The rich invest in real estate, stocks and bonds,

  • The rich know financial literacy

The rich know the difference between assets and liabilities, profit and loss account, balance sheets, balance statements,

They invest in assets whole the poor invest in liabilities thinking they are assets

To become financially stable you need to learn how to interpret financial statements

The poor people live pay check to paycheck, they are ever working for an increase in their salary

You don’t need to live paycheck to pay check, start your own business

Develop the mindset of an entrepreneur, develop the skills, stop being employed and start your own business

3.  Rich people have multiple streams of income while the people live paycheck to paycheck

The rich people diversify their income sources, they invest in dividend generating assets, they know the power of compound interest rates while people survival on only their salary

The danger of relying on your salary alone is that your pay is determined by your boss, you boss determines how much you will earn, when you will earn it and when you will go for a leave

But rich people know that they don’t need to seek for a vacation because they are their own boss

If you’re a poor person, ask yourself if you lose your current job, what impact it will have on your life

So start building multiple streams of income

8. The rich how to use debt and taxes to build assets

The difference between the rich and the poor comes at how they both use debt and taxes to build assets

The rich use debt to build assets while the poor use debt to build liabilities

The rich use debt to buy real estate and stocks while the poor use debts to buy cars or change their lifestyle

If you need to get debt, you need to know how much interest you’re going to pay on the dent and how much interest you will earn from the investment you want to buy

If you find that the interest rate on your investment is low compared to the interest you will pay back for a debt, don’t go into debt

Being in debt makes you to become a slave to your borrower, by being in debt, your working for your lender not yourself

So debt can either be good debt or bad debt

A good debt is the one you get to invest in a productive activity while a bad debt is the one that you get and invest in non interest producing asset

The way you use debt determines whether it is a bad debt or good debt

The rich know how to escape paying taxes by making business and investing in real estate to estate paying taxes

Business men are given tax incentives to hire employees while employees are being taxed by the government

“Debt and taxes make the rich richer whereas the poor and middle class poorer” Robert Kiyosaki

  • The rich take their children to high paying professions while the poor tend to take their children to poor courses’

There are certain professions that are good and those ones that are useless

Courses like medicine and engineering command a high pay in the job market while courses such as ethics or conflict management have less market

The more the demand for a certain profession, the more the pay, Engineering and medicine professions are more likely to command a higher pay
before you take your child to school to take a given profession, ask yourself is there a market for such courses? Can your child employ himself after the course? What can happen if at all the child fails tom get a job?

  • Saving money in the bank is a bad option for the poor

Do you know that saving money in the bank is a bad idea? Banks will charge you money for keeping your money and they will also charge you transaction fees whenever you want to withdraw your money

The poor people concentrate on saving while the rich concentrate on investing

  • The poor blame the government  for a bad economy

The poor people are ever blaming the government for not earning enough money to cover the cost of their expenses while the rich people use the government conditions to build wealth

Wealth is being made but the poor people don’t know how to build wealth

So if you’re interested in becoming rich, stop blaming the government, you’re poor because you’re not creative,

No one cares about your poverty, no one cares, and your poverty is your own, stop blaming it on others

I once read a statement that says “being born poor is not your problem but your problem is dying when your poor”  so you need to make sure that when you die you leave a legacy of a rich family

Don’t die and your kids continue to comment that they are poor because their dad or mom was poor?

Wake up your ash and work to get rich

Focus on creating your own business

  • The poor people fear to lose their money

The poor mindset of fearing to lose money keeps them poor, the rich know how to take calculated risks; they know what degree of risk they should take, while the poor people are ever afraid of losing money

They are ever on the negative side of what if I lose money, what if it does not work out, what if what if what if

Get over all those fears and concentrate on building your own business

Stop giving excuses

  • Poor people work hard while rich people work smart

The rich people have passion for what they do while poor people are motivated by the paycheck they receive at the end of the month

You need to have a sense of purpose, have a purpose for your life

Go after the things you want and don’t follow what others want you to be

Work towards achieving what you want in your life

Some people see what they want while others concentrate at the obstacle to what they want

So you need to concentrate at what you want not the obstacles to achieving what you want in life

Take credit for taking accountability for your actions

Who is able to become rich?

People who are determined to take action are the people who will become rich, people who are willing to have sleepless nights thinking of how to solve the problems which they are facing

Help the person to the right and left of you if you’re to become rich in life, we need money and people on the left and right of us have the money we need

If you help many people by solving their problems you will be rich

Love your job and work towards finding out how you can make your job better.

Be yourself, concentrate at what makes you happy, create good environment to work in and people will love to work with you.

Remember as you gain fame, as you gain fortune, people will treat you better but none of this stuff is made for you, they will do it because of the position you hold, all those are not meant for you” Simon Sinek

Have the way and desire to know what drives and inspires you to do what you do.

THINGS THAT POOR PEOPLE DO THAT REACH PEOPLE DON’T DO

  1. Rich people are paid according to results while poor people are paid based on time
  2. Poor people blame others for their fortunes
  3. Poor people watch television while rich people read books
  4. Rich people take responsibility for their action
  5. Poor people concentrate on saving while rich people concentrate on investing
  6. Rich people continue to learn while poor people pretend to know it all
  7. Reach people want to be attended to
  8. Rich people concentrate on the inflow while poor people concentrate on outflow
  9. Poor people say money is the root cause of evil but rich people know that poverty is the root cause of evil
  10. Poor people want to gamble but rich people believe that they don’t have to bet to become successful

15 Steps to never be poor again/ how to never be poor again?

  1. Decide that you will never be poor again

Always make decisions that are aimed at making you rich, before you take any action you should ask

  • Know what makes you money and what takes you money

Set realistic financial goals to achieve, know how much you earn and how much you spent,

Record all your expenses; ask yourself do I need to spend money on all these

If you can reduce on the expenses do it

  • Reduce on what makes you lose money
  • Pay off your debt
  • Increase on your income by starting a side hustle

Work hard towards increasing the amount of income you earn, stop trading time for money; by trading time for money you will never be rich

  •  Stop saving, invest your money,
  • Specialize in a given field and charge for consulting
  • Start a business that increases your value over time

All wealth individuals own their own business, they are not employees, they are employers

  • Pay yourself first

Rich people pay themselves first before they can pay for others

  1. Stop paying much taxes

Count all your bills as business expenses

  1. Invest in passive income generating assets like real estate’s or online business , publish books, or start a blog or YouTube channel
  2. Build income generating assets  like real estate, online business,
  3. Create multiple streams of income by diversifying your portfolio
  4. Learn to save and invest money

Save money for investing to bring in interest rate to you

  1. Use your money to make more money
  2. 16. Invest in yourself

Increase on your skills, get high paying skills, invest in yourself by enrolling in that course of your choice

How do you motivate yourself towards becoming rich?

  1. Know your goals, be self motivated, no one cares about you, learn how to motivate yourself

Know that no one knows what you want to achieve, it is all about you,

No one cares because they don’t know what you’re doing

People don’t support you because they don’t know what you’re doing

They only know that go to school, get a good grade, get a good job, save money and this is a wrong advice

Once you divert from that traditional path, no one will motivate you

They even want you not to go above them, they have envy and generous

Don’t mind about them, they don’t know what you want; you don’t need anyone to motivate you

Wake up and put your ash to work

To achieve success you need to motivate yourself because you know what you’re doing

Best advice to young people is:

  1. Nothing is easy
  2. You have to pay the price
  3. Learn from your mistakes
  4. Learn high ticket skill
  5. Work for yourself

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