Rich Think, Poor Think

“The rich have an advantage. They learn about money at home and not in school. When it comes to money they don’t play by the same rules. That’s because when it comes to money, they aren’t playing the same game.”
Robert Kiyosaki. Author of Rich Dad, Poor Dad

Turn Your Thinking Upside Down
“The wealthy think differently. They pay themselves first then pay others with what is left. the poor pay others first and then pay themselves with what is left. Guess who ends up with the most”
Michael Moore

To be wealthy you have to think like a wealthy person. this does not mean that you pretend your wealthy. it does not mean that you maintain the illusion of riches. It means that you think like a rich person.

So how does a rich person think?

A rich person considers money to be a tool. Money is to be used, not spent. It is not a means of acquiring more consumer goods. It is a medium that provides the opportunity to increase itself. In other words the rich use money to make money. A rich person has a financial plan or a business plan. He does not go from day to day, week to week, just paying his bills and hoping to save a bit. He will take his income and first decide, “What shall I save or invest?” then the balance goes to pay bills.

For most poor people, ‘doing the accounts’ means working out which bills will be paid this week or this month. For a wealthy person, ‘doing the accounts’, means working out what will be invested in this month. Rich people have an understanding of the difference between assets and liabilities. Poor people usually only understand the difference between income and outgoings. Rich people ensure they take the time to understand financial statements. Poor people usually don’t A totally different attitude…

Wealthy people however, do not ‘become rich’ then adopt the attitude of a wealthy person.

No. Rich people have goals. And a realistic time frame to achieve them in. Rich people remain focused. they do not let setbacks or failures take their focus away.

Rene Rivkin, the late wealthy Australian stock broker, bounced back from big losses a few years ago to become even more wealthy and successful than before.

In short, to become rich and wealthy, one of your first steps is to turn your thinking around. Remember you don’t become rich then think and act like a rich person. You think and act like a rich person, and the result of that will be a wealthy you!

Extract from the book, “KickStart to Wealth” by Michael Moore, available from Author Services