7 Things The Rich Do That The Poor Don’t – Tips From Business Moguls
You work hard every day. You save as much as you can. But still, you aren’t able to pay all your bills. And then you wonder, how are 614 people in the USA worth $4.6 trillion?
They weren’t born billionaires and aren’t that smarter than anyone else.
It’s simple. They became rich by mastering a few principles that keep them ahead. That’s how they maintain and grow their wealth seamlessly.
A study of 600 millionaires found that people become wealthy not necessarily by working hard but by embracing certain behaviours or wealth factors.
This means one thing – Anyone can become rich. You just need to know the proper steps and the habits to embrace.
“Everybody is born rich; It’s just that many people are short of money” – Bob Proctor.
So in this article, I’ll share seven tips from top entrepreneurs in the world that will help you build wealth.
1. The Poor Work Hard, The Rich Work Smart
While 58% of Americans believe in working harder, wealthy people believe success is not just about working more hours to earn more.
Bob Proctor, an author, and top entrepreneur gives a good analogy in this video.
He earned $4000 a year as an office cleaner and thought the only way he could earn more was to take on more floors.
He worked very hard until he collapsed due to burnout. This experience made him change his strategy. He started hiring multiple cleaners to work for him as he sourced for new contracts.
A few months later, he was earning $14,500/month. That’s how he started his entrepreneurial journey to become the most famous prosperity speaker today.
Moral of the story. Wealthy people don’t settle on one source of income. It’s easy for your multiple bills to override that source.
So how do you create multiple sources of income?
Bob Proctor gives three answers.
The last point is the most important.
Look for good mentors that can pump unique ideas into your mind. Not your neighbor or uncle who is in the same financial position as you.
2. The Rich Think of Success Differently
While success is accomplishing goals and purpose, everyone has their description depending on their financial status.
One would say success is having a $100k/year paycheck. Another would say it’s owning a multi-million dollar business, and yet another will say success starts by marrying the right person.
So, there’s no definite answer, but all these answers point to three elements:
I. Who You Want to be
If you can figure out who you want to be, not what your parents or friend want you to be, you have unlocked the first step to kicking poverty out of your life.
This is what I mean.
Let’s say your goal is to earn $100K/year. If that’s who you want to be, you shouldn’t be jealous of your friend earning $1 million/year. Why? Because you would not be honest with yourself!
Success is about living the life you’re comfortable with. If you aren’t, go back to the drawing board and restructure your goals.
II. Figuring Out Your Talents
Everyone has something that they are good at. It is what gives you fulfillment when you practice it.
This implies that you can’t be good at everything. If you are good at sales, you can’t force yourself to be an accountant. You have to play the game of life with your strengths!
III. Defining Entrepreneurship and Intrapreneurship
Everyone wants to venture into entrepreneurship. Unfortunately, we end up with many unwanted entrepreneurs. These are people who don’t have the behaviors of a successful entrepreneur.
They are just starting a business because it seems like the “easiest” route to financial independence.
The journey to becoming a successful entrepreneur starts by becoming a successful intrapreneur first.
A good intrapreneur thinks, works, and sleeps about money, costs, and sales they’ll need to become an entrepreneur.
The difference is that an entrepreneur puts in the capital. But if he doesn’t have all the elements of an intrapreneur first, the business won’t succeed.
3. The Rich Have a Robust Personal Finance Structure
More than half of the American population spends more than they earn. Over 50% have credit debts, and 40% have mortgages or car loans.
On top of that, even more Americans aren’t able to meet their financial needs when they lose their income.
While this is a significant concern, you can make two simple changes that can keep you out of debt for the rest of your life.
• Pay it off
Most people that are in debt don’t want to think about it to avoid stress which might help in the short term, but it won’t change anything in the end.
You’d feel a lot better if you had a plan on how to clear it. You don’t have to pay it all at once. Map it all out by your creditor and agree on a monthly payout (no matter how small!).
• Get in the Right Group
You must have seen this quote before: “You earn an average of the five people you surround yourself with.”
So does it mean you should cut off your friends? Of course not. Instead of closing the door, why not open new ones to the people you’d like to hang out with.
These are mentors, role models, or better friends. You can create a weekly check-in via text or email to discuss your financial life.
That’s how you create a strong bond with people that are unapologetically ambitious that you’ll grow together with.
4. The Rich Work on Creating More Time
There is one distinctive characteristic of the poor that the rich don’t have.
Poverty-minded people are big misers. They won’t give anything without expecting anything in return and like taking shortcuts on every opportunity.
The rich, on the other hand, value time more than money. They can spend a million dollars on a private jet without thinking about the financial implications.
They don’t care that the jet will depreciate over time. All they care about is the time they will save on moving from one city to another to make deals.
As a result, they close more deals and add more money to their bank accounts.
It also allows them to balance their chain of businesses, family, and personal time. Quality time spent out of a job gives them the energy to boost their productivity when at work.
5. The Rich Choose The Right Relationships
Rich people have rich relationships, and poor people have poor relationships. You are only successful if you relate with people that have a common mindset.
“You are a product of who you associate with.”Tom Corley.
To create a robust relationship, develop a character of giving and not taking. How much value are you giving to people around you, and how long are you prepared to do it?
You don’t know what follows after continuous giving. You are not one opportunity or one sale away from changing your life; you are one contact away. You can get a business referral that can break your ROI curve.
This leads to the next step, which is embracing the people you meet.
A rough-looking guy once walked into Morgan Stanley with a Harley Davidson bike. He had tattoos all over his arms and seemingly didn’t look like an investor.
No adviser wanted to take him, so they pushed him to a new worker in the office. A few minutes later, the rough guy left after investing $50 million that he got as an inheritance.
That one-minute account was worth $50 million, and the new broker would be smiling to the bank.
You have to understand the potential of every relationship. Like a movie, you never know the next scene, and you can’t assume what that contact will lead to.
6. Poor People Are Their Obstacles
Your life is a physical manifestation of the conversation that goes on in your mind. You work hard to produce the thoughts in your mind. If you are all negative, your life will reflect negativity and vice versa.
Your mind is the core engine of your life. When you want to accomplish something, your mind should first birth it even before you start working on it.
And similarly, negative behaviors are shut down on the mind before they become a part of you.
For example, unhappy people are not sad because they’re having a bad day. They’re sad because they think about sadness for a long time, and they let the emotions follow the thoughts.
After your emotions, then come to the words of your mouth. Your mouth is like the rudder in a boat. Your legs will take you where you want to go, but your mouth can take you where you want or don’t want to go.
What you speak with your mouth turbo boosts what you think. If you say I’m a failure, your subconscious mind agrees with that, reflecting on your life.
7. Rich People Set Goals the Right Way
If you set a goal that you know how to achieve, that’s not a decisive goal. Why so? You’ll be limited to a specific route. The right goal is one where you only see the end, but you don’t know how you’ll get there.
For example, Edmund Hillary, the first person to climb Mt. Everest, tried to climb the mountain three times before 1953.
He didn’t have a clear path to achieve this milestone. He would only be able to tell you once he accomplished the mission.
The trick here is to pick a goal you want, but you don’t know how to achieve it.
The importance of setting goals using this pattern is that you will learn a lot during the course. You will meet incredible mentors who’ll show you the way as you continue walking.
While everyone can’t get to the top 1% of the wealthiest people, we can change our habits to live better.
You can get enough money that you are comfortable with and save for the future. If that’s your goal, start trying these tips as soon as possible.