Money: 10 differences between the richest and poorest

Hello friends!

An important part of all Professional Guidance or Career Coaching is the part that deals with the expectations of remuneration, salary, profit, in short, money. That’s why we’ve been talking so much about this aspect here on the site, when we talk about professional choice. Of course – being a site about psychology – we end up talking more about remuneration in psychology. But today, the text is valid for any career or profession.

Talking about money messes with certain personal taboos, dogmas, preconceived ideas, feelings (of inferiority or superiority). Depending on the family’s economic background, we inherit certain assumptions about what is possible or impossible, desirable or repugnant. This explains how everyone can have beliefs about money and finance that are totally different from everyone else’s.

As I like to read everything related to psychology (and self-help – see the difference between psychology and self-help), I have seen that several books on how to make more money start by saying that the beginning of everything is in our mind. That is, it is the way we think about money that will determine the way we act. And, in turn, the way we act will bring results – positive or negative – to our pockets.

See also – The psychology of money and prosperity – Are you a prosperous person?

For example, there is a book that has become a classic called Rich Dad Poor Dad. In summary, the author lived with two types of father mentality: that of a great businessman and investor and that of a great university professor. Curious how the poor dad can have more academic training than the rich dad, isn’t it? But it is evident from reading that this was a key point for him to discover: there is no direct relationship between earning a lot of money and having more academic training.

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But another book that caught my attention and I think is unknown to most of you is Keith Cameron Smith’s book called Top 10 Differences Between Millionaires and the Middle Class, by Sextant Publisher. From now on, I recommend reading it and I’ll provide a short summary below:

Top 10 Differences Between Millionaires and the Middle Class

1) Thoughts about the weather

The first difference between the richest and the poorest is the thinking about time, in the sense of looking at the future: short term, medium term and long term.

Those who are going through a lot of financial needs can’t afford to think about 10 years from now. Your concerns will be totally focused on today, on having something to eat, a roof over your head and clothes to wear.

Those in the middle class range basically think from month to month in terms of their money. Think about when you receive your paycheck and think about when the values ​​in the bank are dropping or zeroing at the end of the month.

And, quite differently, those who have more possessions, think in the long term, from 5 to 10 years ahead or even more. With that, you can see, for example, that buying land in a somewhat distant area will be worth it. Not today. Not this month, but 10 years from now.

2) Differences about the object of thought

Keith Smith points out that another important difference about the financial psychology of the richest and the poorest is that the former think and talk about ideas, while the poorer are concerned about other people. In short, with gossip.

At first, this doesn’t seem like an important difference in mindset. However, it demonstrates that the concern is diverse and will also cause results over the years. What good is it to know what neighbor So-and-so did or said? Nothing in 5, 10 years. Now, having talked about raising interest rates (an idea) may have an important result.

3) Differences in thinking about change

The word change here must be understood in the most general context. Not only change your mind, city or country, but mainly in the sense of being able to change your own perspective.

For example, even if you have a specific higher education, a guy who has a more prosperous mindset will not mind investing in a completely different area. Here in our region, I know doctors who invest in coffee. And why not?

For the middle class or lower class, change is always felt with fear. People are afraid of change and therefore remain the same for decades.

4) Differences about risks

This difference is totally linked to the previous one. We know that the more risks the more chances of earning more in investments. If we invest in savings, we will have zero risk, but the interest received will be low. If we invest in stocks, the risk will be greater (we could even lose everything), but what we earn in a year of savings can be obtained in one day on the stock market.

According to Keith Smith, the rich face risks. It is clear that risks are calculated in terms of chances of loss and gain (nothing is done without thinking it through beforehand, obviously).

5) Differences about learning

At the beginning, I told you that Kiyosaki’s poor father was a university professor. I find this example paradigmatic because it’s funny. Having a college degree doesn’t mean you’ll become a millionaire, right?

The most curious thing is the case of people who have degrees in administration and economics, work in banks as managers or supervisors, and are unable to improve their financial condition over the years.

The big difference here is that the richest never stop learning. And learning does not only mean formal learning (from having so many postgraduate degrees), but also the learning that we can obtain in free courses, in books, in conversations with more qualified people.

The upper middle class (or middle-middle) thinks that learning ends with higher education and the lower class may not even have finished high school. Exceptions to the rule exist, of course. However, if we notice the exception, we will see that those who didn’t even have the fourth grade of Elementary School and became rich, did not stop learning – at least about how to invest and have more income.

6) Work for profit X Work for wages

As I mentioned at the beginning of the text too, one of the most important differences between those who have more money and those who have less is that those who have more work for profits (profits) and those who have less work for wages (wages).

And maybe you ask me: but what about who earns a high salary?

It doesn’t matter. This person who earns a high salary is in any case exchanging his time for the money he receives at the end of the month. It is no wonder that we often see cases of directors of companies that earned a super salary with financial difficulties when they are fired. The salary, in this case, was his only source of income. When the source dried up, the money ran out.

As the relationship is between time and money, there will be a ceiling on earnings. This is clearer in professions whose pay is hourly. For example, the best dentist in town might charge a lot for his hourly work. However, he will not be able to work 24 hours a day. The maximum you will earn will be the maximum you work.

So, the difference between those who have a lot more money and those who have less is that the former focus their attention on opportunities where they can earn without being present. Kiyosaki mentions that the three main possibilities are:

– businesses that do not need the presence of the owner

– actions

– creations that pay per sale or royalty. For example, writing a song or a book.

And then the difference is very clear. If an author writes a book and sells millions of copies, he will have had only one job (writing the book) and he will be paid maybe his whole life for one job. While the worker who waits for his salary will only receive it if he works again.

7) Differences over generosity

This point, I believe, is particularly controversial. Smith points out that the rich can be generous, while the poor cannot afford to give away what they have.

In my opinion, this is questionable. We see direct cases of those who have a plate of food and share it and we see those who have millions being unable to donate a hundred reais…

However, an important point is that many of the richest (contrary to what we imagine) think of building their fortune to be able to help. Maybe you initially think of helping your children, grandchildren, great-grandchildren and relatives. Over time and with the increase in assets, he realizes that he will be able to help many more people. And it does so, often without making a show of its generosity.

Spiritual issues also come into play here, let’s say. Many people believe that there is a cause and effect relationship in actions (like Hindu karma). Thus, those who dedicate their time or donate part of their income would have the return of their good deeds in the future.

We don’t really need to believe it. If we look closely, we will see that this is based on the law of reciprocity. I know the case of a gentleman who worked for many years, voluntarily, in a nursing home. When he was about to retire and going through some financial difficulties, the asylum called him to be one of the directors, with an excellent salary.

It is evident that you did not help for more than 2 decades in view of this return. However, that’s what happened to him.

However, this difference about generosity remains controversial.

8) Differences about sources of income

This difference is linked to difference 6 (about earning wages or profits). Believing that a person has to have only one source of income is a big mental limitation that will have a direct impact on earnings.

For example, a person who works in a bank and believes that his only source of income is his salary is limiting his income to his salary. There may be hope that the salary will rise over the years, to earn bonuses, commissions, but it is still a limitation.

Why not have multiple sources of income?

Then this person scratches his head and thinks: but how?

Well, there are millions of options. Investing in any type of income-earning financial investment (even savings can be an interesting exercise). Create a business and put trusted people to work. Create new services or products in your spare time (for example, selling sweets, cakes, etc.). Buy land on the low and sell on the high. Buy old houses, renovate and sell.

I don’t know. There are really millions of options. Remembering the three types of sources of income most suitable to obtain the dreamed financial freedom:

– businesses that do not need the presence of the owner

– actions

– creations that pay per sale or royalty. For example, writing a song or a book.

9) Network of contacts

Network. In English, network. The richest are always looking to expand their network of contacts, while the poorest are increasingly closing themselves in the circle of friendships already created.

It is a fact that the more people we meet, the more financial opportunities arise. Perhaps there will be an opportunity for a new job, a new service, a new investment. Perhaps an idea that can change a life.

Creating new contacts and seeking to maintain previous contacts: another fundamental difference that will be reflected in earnings.