Key Differences Between the Rich and the Poor

Nearly everyone wants to be rich, but not many are. Why do so few people have real wealth, even though everyone desires it? Certainly, there must be some fundamental differences between the rich and the poor that can account for the differing levels of success.

Rich people often seem capable of generating amazing things in things in their lives. And many with less money seem to be stuck. You wouldn’t be alone if you concluded that this is due to some difference in abilities or work ethic. But if you look closely at the rich people you know, you’ll likely find that most aren’t particularly lucky, intelligent, or hardworking.

Let’s examine some of the actual fundamental differences between the rich and the poor:

1. Rich people attempt to create a specific life for themselves; poor people believe they have no control. If you don’t believe you can create the life you desire, why would you even try? But if you can envision what you want, you stand a chance to get it.

2. Wealthy people dream much bigger. Tell your poor friends that you want to be a millionaire and see what they say. You’re likely to hear something like this, “No one needs that much money. You can live fine with a lot less than a million dollars.”

* Do you think that a person who says things like this is ever likely to be wealthy? People who are poor always tend to think small. People who are rich dream big.

3. The rich play to win, and the poor play not to lose. This is significant. The rich are quite bold and are always searching for a way to win when money is involved. The poor are too busy worrying about preserving what little they have. They never give themselves the chance to become wealthy.

4. Opportunities vs. obstacles. Those who are wealthy tend to focus on the opportunities and then simply deal with the obstacles as they arise along the way. The poor have a habit of focusing on all the obstacles.

* Focusing on problems makes it very difficult to find solutions. A problem-oriented mindset also can cause challenges in staying motivated. By keeping your eye on the prize and staying focused on solutions, you’ll find continually moving forward to be much easier.

5. Commitment counts. The rich do an excellent job at staying committed to achieving their goals. The poor are good at dedicating themselves to dreaming about their hopes instead of making goals out of them.

* Although you may have fun thinking about how great it would be to be rich, that’s not going to make your desires happen. Set a goal and then fully commit to it.

6. Peer group matters. We all tend to rise or fall to the level of our peer group. Have you ever noticed that the rich hang out with other rich people? Spend time with wealthy people if you want to succeed financially. You’ll be amazed at how your perspective changes when you hear people talking about how they made $2,000+ in a single day.

7. The rich constantly learn. You’ll find that wealthy people are usually learning new things, especially when in regard to making more money. The poor frequently have an attitude that they already know everything they need to know. Don’t stop learning.

Developing the habits and attitudes presented in this article will go a long way towards improving your financial situation. It’s never too late to start, and you’ll be amazed at how quickly you can turn things around. Start today and you can change your financial life forever!

Money Habits That Can Keep You Poor

Just as there are habits that will make you rich, there are others that will make you poor. Habits aren’t always easy to break, but when you see the damage caused by these common practices, you’ll be motivated to get them out of your life!

Common Money Habits That Can Prevent Positive Progress

1. Not having a budget. Everyone needs a budget, even if they’re making a million dollars a year. Spending money is easy, no matter how much you have. If you don’t set some parameters, things can get out of control in a hurry.

* Sit down with all your monthly bills and set up a simple budget. Keep the little stuff in mind, too, like coffees before work or snacks at the gas station. Those small expenses can really add up.

2. Carrying credit card balances. No one can consistently invest well enough to offset credit card interest. Take a look at your last statement to see just how much your credit card is costing you. Depending on your interest rate and balance, it can easily be thousands of dollars a year.

3. Not setting up an IRA. Time truly is money. Get your IRA set up as soon as possible and put some money in it. The funds you’ll have at retirement are heavily dependent on when you get started. And IRAs are wonderful retirement tools. Fund yours as fully as you can each year and watch your retirement grow.

4. Not saving. If you pay everyone else first every month, there never seems to be anything left over to save. Pay yourself first, and then pay your bills with what’s left. Many employers can have earnings automatically deducted from your paycheck and put into a separate account. Save some money every month.

5. Buying new cars. A new car loses an enormous amount of value in a very short period of time. Look into certified used cars that are only a couple of years old. Frequently, you’ll be able to find a car at half the cost of a new one, with minimal wear and tear. These cars usually have warranties, too.

6. Letting the small stuff get out control. Take a close, honest look at how much the small stuff is hurting your bottom line. How much are you spending on fancy coffee in the morning? Do you go out to lunch every day? How about snacks? Magazines? A soda at the convenience store? Look at your bank statement to see what’s really going on.

* Small leaks can sink ships. Fix your leaks before they get out of hand.

7. Not taking advantage of your employer’s matching contributions. If your employer will match you 401k contributions, you’re leaving a lot of money on the table. Many employers will match 3-5%. Think about how much that really is, and then consider the effect of compounding interest. Over time, the money they give you becomes worth a lot!

* Employer contributions should be viewed as free money, because that’s exactly what they are. Would you pass on money that someone handed you on the street, with no strings attached?

As you read through the list above, think about your own money situation. Consider which habits are having a negative impact in your life and resolve to eliminate them immediately. Accumulating wealth can take time, so it’s important to start as soon as you can. Fight these bad habits with everything you’ve got, and watch your monetary success grow year after year.