Being rich is a dream most people cherish. It’s a highly coveted state of life, where most desires and passions are made real through the power of money. But though the advertised formula of amassing wealth - honest, hard work and perseverance - is common knowledge and often championed, the promised result of riches, it turns out, isn’t that common at all. Is it possible, then, that there is more to being wealthy than just “hard work”? Can the way people think actually affect their financial states?
See also: Income Inequality: Did You Know Itβ€™s Making People Sick?
Steve Siebold, in his book “How Rich People Think,” explores this question. For years, he interviewed millionaires around the world in order to get important insights into the psyche of the wealthy and see how their psychological patterns differ from the average wage earner. Here, we highlight 5 key findings from his research.
The Rich Man Acts, The Average Joe Waits
From his interviews, Siebold found that most middle class people have a lottery mentality, wherein they wait for that one lucky strike that could boost them to instant riches. The rich, on the other hand, rely on problem-solving and taking advantage of that space, investing and using their time wisely to get to a desired goal instead of waiting around.
The Rich Man Sees Money Logically, The Average Joe Sees it Emotionally
Siebold emphasizes that the rich sees money as a tool to gain opportunities and options in life. Whether they have a little or a lot doesn’t affect their goals or re-shape their life in any way. The middle class often succumbs to the tendency of tying their life to the amount of money they have and having that fear of losing money. Siebold says, “An ordinarily smart, well-educated and otherwise successful person can be instantly transformed into a fear-based, scarcity driven thinker whose greatest financial aspiration is to retire comfortably.”
The Rich Man Focuses on a Specific Knowledge, The Average Joe Stops at Formal Education
According to Siebold, “Many world-class performers have little formal education, and have amassed their wealth through the acquisition and subsequent sale of specific knowledge.” The middle class, however, believe that gaining additional degrees would pave the way to wealth. Siebold says this is attributed to their tendency to adopt a linear line of thought that hinders them from perceiving a higher level of consciousness.
The Rich Man Lives Like a Poor Man, The Average Joe Lives Like a Rich Man
Well, it’s not exactly poverty to an extreme extent, but the rich, Siebold found, often live below their means, whatever level that is. It’s not a case of wanting to save every last penny, but that rich people have this mindset that, because of their wealth, they can “afford” to not live richly. On the other hand, the Average Joe is concerned about status and showing off their well-earned money that they often end up living way above their own means.
The Rich Man Believes in The Virtue of Selfishness, The Average Joe Doesn’t
Siebold writes, “The rich go out there and try to make themselves happy. They don’t try to pretend to save the world.” For the middle class, though, this mentality is met with disapproval and Siebold believes that is what’s keeping them at a financial disadvantage. The rich believe in taking care of their own needs first and if and when they can help, they do.
Do you agree with some of Steve Siebold’s findings? His ideas have started a conversation and challenged society’s norms when it comes to money and getting rich. Were you able to identify with any of his key findings? So, do you think like a rich man or an average Joe? Let us know in the comments section below!