There are many variables when it comes to building wealth. Self-discipline, a good savings plan, a little luck, are some of the necessary traits to building wealth. One thing is certain, you have to approach wealth building strategies by focusing your energy and thought process the same way the wealthy do. Here are 5 typical traits of wealthy people regarding their approach to life, which differs from the not so wealthy!
Wealthy People focus on opportunity, poor people focus on obstacles.
Keep your glass half full, focusing on obstacles is a glass half-empty mentality and does little for a positive outlook. You will become what you think about. If you focus your energy on the obstacles that stand in the way of your success, you are most likely not going to experience much success. Focus on the things that make you happy, focus on the good fortune you have, turn off the media its too negative! Don’t obsess over material things, they are superficial and short-lived, rather gain experiences, as they are much more gratifying!
Wealthy people prefer to get paid based on results, poor people prefer to get paid based on time.
You will make more money if your pay is based on results, that is for sure. Results are an important motivator as well, it creates incentive. If all you are doing is trading your time for someone else’s money, then your incentive is limited and therefore your income will be. Poor people want the “security” of a steady paycheck, they like to know that the same amount of money will be given to them for their 40 hours of work. This is a fear based approach, poor people embrace fear as a disincentive for doing something. One of the traits of wealthy people is they only use fear as a means of measuring an opportunity cost. The wealthy muse ‘If I do one thing, how will that effect my opportunity cost of not being able to do another thing’?
Wealthy people manage their money well, poor people mismanage their money well.
Wealthy people buy assets, poor people buy liabilities they think are assets. Poor people live in a gotta have, consumption world. They watch a lot of television and spend their money (often times on credit) on consumption items which have no intrinsic value. New iPhones, sneakers, cars, bling, tattoos, are the things that the poor spend their income on. Wealthy people spend their money, often times with cash or with OPM (other peoples money) on things that produce income and have intrinsic value. Stocks, Rental Property, Art, Commodities, these are things that the wealthy spend their money on. The poor don’t understand leverage, they save very little and OPM, well that is a welfare program to many of them.
Wealthy people have their money work hard for them, poor people work hard for their money.
This goes back to the wealthy buying assets. They spend their money on things that make them more money. They invest in things that make money while they sleep. The wealthy typically live at or below their means whereas poor people live above their means and are often spending unnecessary money on high interest payments. Wealthy people don’t work for money, they employ money to work for them, they study wealth building strategies.
Wealthy people believe they create their life, poor people believe that life happens to them.
One of the most prominent traits of wealthy people is they believe in themselves, they understand the value they create. This gives them empowerment to direct their lot in life. The poor, on the other hand, let others create their lot for them. They blame other’s for their failures, use excuses, rather than pick themselves up by the bootstraps and find a better way.
It is never too late to to change your thinking, if you find yourself in the ‘poor’ category, simply change your mindset and think like the wealthy do. It is all between your ears. You can wake up and decide that today is going to be the first day of my new mindset. From now on, I am going to approach life in a positive manner, I am going to associate with like-minded people. Use the power of peer influence to feed your sense of optimism.