If you are someone who is doing a 9 to 5 job and not making enough money to support his lifestyle, you are poor. It is a universal fact that to be rich, you need to have a rich mindset but no one tells you what exactly a rich mindset is.
There are certain habits, and principles rich people follow to stay rich. You must have also heard that getting rich is easy but staying rich is really hard. There are certain habits rich people have that the poor or middle-class don’t. Rich people don’t gamble in casinos a lot, they start with Online keno, and Online pokies, they don’t buy a luxury car from the paycheck, they build a cash flow from that paycheck and buy the car from that cash flow.
Rich people don’t take failures as end-of-life scenarios, they take failures as lessons. If you want to be rich, you need to have some basic habits and follow the basic principles of making money. Not everyone will tell you this, and even if someone did, if you don’t have the right mind, you will never be rich.
Here are a few things you need to know about getting rich
Time Is Money
You must have heard this notion a lot and it has become quite a cheap line but this frequently spoken word has lost its value. Here is a new way of thinking about it. Suppose there are two persons, Person A, and Person B. Both are poor and want to have a luxury car, but Person A has a poor mindset and Person B has a rich mindset.
They both work at the bank and earn more than $10000 a month. Person A, having a poor mindset will buy a luxury car from the first paycheck. Then he will have to pay monthly payments and also have to afford the fuel expenses and repairs for the car. He goes into debt just because he cannot afford the car.
On the other hand, Person B has a rich mindset, he does not buy a luxury car from the first paycheck, he invests it in stocks or a business. Now he is earning $10000 from the job and $5000 from the investment he made.
In a few months, he would have enough to buy the luxury car, and he will also have enough cash flow to afford the fuel and maintenance expenses of that car. Person B used time as money, he waited to have enough cash flow to be able to afford a luxury car. Person A didn’t think of it this way and ended up staying poor.
Assets Vs Liabilities
An asset is an investment that makes money come into your pocket whereas a liability is an investment that makes money go out of your pocket. Person A, being the one with a poor mindset, bought a liability and so ended up not being able to afford it.
On the other hand, Person B bought an asset first (investing in stocks or a business) to generate a steady cash flow so that he can buy liability and be able to afford it without going into debt. This is one of the basic differences between the rich and the poor. A poor person wants to buy liabilities thinking of them as assets.
The rich know exactly what an asset is and always prioritize it over liabilities. It indeed took more time for Person B to buy that car but as mentioned above, time is money, and he knew exactly what he was doing.
The rich know when to spend and how to spend. The poor have no idea what controlled spending is. Here is a thing to think about. Suppose a person is making one million a year, and another person makes only a quarter of it.
But the person who is making a million has annual expenses of more than a million, he is going into debt. Whereas the person making a quarter of a million spends only half of it and saves the rest.
You might think the millionaire guy is rich but according to his bank statements, he is poor as he is taking out more than he can afford. The second person who is saving about half of his income is rich and has a very strong mindset. He knows what controlled spending is.
All of the above-mentioned differences between the poor and the rich are about your mindset. If you know what you are doing and know how the rich make the money, you will be rich soon.
It is all about the mindset, thus, if you want to be rich and have a rich lifestyle, give yourself some time and change your habits.
Make it a principle for your life to buy assets first and liabilities later. Learn to build cash flows and start making money more than you spend. Get rich quickly.