The Wealthy Mindset

Learn to Think and Act Like the Rich
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 realise 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 summarises some of the key differences and helps to adentify 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:
|
Have a negative attitude, using language such as:
|
|
|
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.
|
No comments:
Post a Comment