Poor people and rich people have very different habits. Money itself is merely a tool and it’s the habit of the rich people that enable money to work for them to produce the results that they have. It is not uncommon to see poor people dress up in expensive clothes to please people while the very wealthy ones appear simple and casual. Poor people do things that keep them poor while rich people do things that keeps them rich.
Money isn’t taking sides with anyone. Money is neutral. If you decide to have it, you have to follow the principles, and if you don’t you will remain in poverty. Having cash doesn’t make a person rich. What makes a person rich is knowing how to manage cash.
Things that are strange with poor people but normal with rich people
1. Savings
An average rich person has a lot of savings. Some are so detailed they have close to 10 different savings account for various purposes. Savings for investment, savings for fees, savings for lifestyle, etc. The list of things to save for is actually endless. The poor person seldom saves any money. They don’t even think that their income is enough. They are often in the habit of taking loans and paying later. They end up having a way lower income that they should have which makes it tough for them to save. Wealthy people on the other hand have a lots of goals they want to achieve. They always squeeze out a percentage of their earning and save because they know that they will still use it in the future. Unless you get a better paying job, your financial future is not likely to improve without savings. Poor people only think of today that explains why they seldom save.
2. Investments
Poor people think buying clothes and accessories are investments when they are not models. On the other hand, rich people liaise with financial professionals to make investments on stocks, bonds, and treasury bills. They try to determine which one gives the most return in order to make profitable investments. They also buy land when they can afford it and look for investment that will save them the most tax before they invest. Poor people generally do not invest. They buy cars, houses, and things that catch their fancy if they can afford it and they wait to be promoted at work to earn more and increate their expense. This means that they buy more of liabilities than assets. A personal car needs maintenance. It is not being used as a commercial car and therefore, is bringing no money. A private house too is a liability, it requires yearly repairs and takes only money from you. It doesn’t bring you any money. Poor people are comfortable with this as long as they earn an income but rich people want only assets that bring in money. A job is temporal, you can be fired but if you have investments that interest every month, how then you could go broke? Which would you prefer, leave your financial future from your boss or take charge?
3. Reading personal development books
Poor people find reading strange. They think it’s a waste of time. They feel comfortable because they have jobs, they make no efforts to acquire any other skill that can improve them. The sad thing is that most wealth principles are contained in books, but poor people are not interested, they would rather pay for Netflix subscription rather than pay for script subscription that will give them access to most financial management books audio for a year. Wealthy people value information, poor people don’t. Poor people prefer to loaf around with friends then pick up a good book and read. They are vast learners. Rich people don’t stop learning. They know it determines how far they will go. They read books on strategy, negotiations, sales and marketing. They take online courses relating to their areas of interest and work very hard to learn new skill.
4. Living below their means
Rich people live below their means while poor people live above their means. Poor people want to spend money as long as it is still remaining. Rich people live on less than half of their income and invest or save the rest. They make sacrifices to achieve their financial goals. They understand that if they spend all their money, they may not be able to afford educational materials to improve their skill and allow them to pay for necessary subscriptions. Poor people think money is meant to be spent, rich people no money is meant to be managed. Poor people see money as value, rich people see money as a tool that can help one create value. Poor people work to be paid, rich people make their money work for them.
5. Creating several sources of income
Rich people understand that having a salary cannot make you rich, therefore they seek creative ways of earning more income. Poor people are okay with their income. The most they do is work towards a promotion. They don’t diversify their income. If they are fired, it is a big problem for them. Rich people don’t take those types of chances, they understand that one source of income will not make them rich. They spend their time diversifying their income streams through assets. Some even start a side hustle and invest whatever that comes of it. Once the hustle becomes profitable, they buy an income-generating asset and start using it. The more assets they have, the more streams of income they have. They do this until they can save the entire salary while living off their interest from asset. They are not interested in big promotion that can solve all the problems. They are content to build and grow with their income.
6. Early rising
Rich people are always early risers. Poor people typically binge watch on Netflix and wake up late daily. Rich people have a lot to do so they wake up early to get started. They have to make a note and lists and organize their day before it starts. Poor people have only one job to attend to and can afford to sleep in. The rich people who rise early who have prepared for the day, they have time to eat breakfast, relax, and catch the morning boss. Poor people usually wake up 10 minutes to the time for the boss to leave and scramble to meet up every day. They don’t have a defined goal guiding them therefore they are not motivated to work as hard as rich people. More often than not, they have no financial goals.
7. Eating healthy
Rich people care about their health and endeavor to eat only healthy food. Poor people on the other hand, eat whatever they want. Rich people know their health is crucial to managing their wealth effectively. They don’t want to jeopardize this by eating what can harm them. They also insured their health just in case. Poor people on the other hand not only find their behavior strange but whatever they please and end up being either obese or diabetic and they often don’t have enough money to pay for treatment. It is really not something you want for yourself. Have a full diet guide and create a full-time table for yourself if possible. That way you eat only what is healthy.
8. Writing down goals
Poor people don’t write their goals. They neither have financial or personal goals. They therefore have nothing to aspire to. This is a very reckless thing to do. When you live that way, you can end up clueless and confused along the line. Knowing precisely what you want can make a whole lot of difference in your life. It doesn’t have to be elaborate, it can be their lines. When you have written them, read them aloud and place them where you can see them daily. Get to work, give it time, they will all come to pass.
9. Having a daily to-do list
Rich people usually have a to-do list. The goal is to help them streamline their activities for each day. It can include task activities that are useful for the growth and places they decide to visit for insight. This to-do list can help rich person recall everything he still has to do at a glance at every point of the day. It is extremely useful productivity tool most poor people don’t use. If you want to be rich, it is probably a good idea to get one.