21 Ways Rich People Think Differently Than Average People
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
I read this article this evening and agreed with most of the points. I figured folks on BP may enjoy it and it may spur some interesting conversation.
21 Ways Rich People Think Differently Than Average People
Enjoy!
This is the one that I wish I would have discovered long ago.
I would have taken the risk and started my own business like I considered after college instead of taking the first job offer that came along.
This is the one that I wish I would have discovered long ago.
I would have taken the risk and started my own business like I considered after college instead of taking the first job offer that came along.
Great article thanks @Bryan Hancock
As a strong proponent of education in all its form, I'd like to avoid the slams on "formal education" is the devil point of view. No matter one's opinion on Art, Engineering, Finance or Education majors, the reality is a baseline education is helpful in REI.
College teaches a couple of valuable skills: how to dig for information and how to apply that information to real world scenarios. In the REI world this translates to the ability to find out how to understand something that you didn't yesterday. Education also lets you practice soft skills in an environment without major consequences for mistakes.
Plus Freshman year was the most fun I've ever had in my entire life. I would never survive that experience today :)
Agreed on that point Aaron. I am still considering getting a 2nd master's degree even all of the "enlightening" education outside of my formal education since 2002. There is some stuff you just can't learn very easily outside of the university.
I disagree with this one:
Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge.“Many world-class performers have little formal education, and have amassed their wealth through the acquisition and subsequent sale of specific knowledge,” he writes. “Meanwhile, the masses are convinced that master’s degrees and doctorates are the way to wealth, mostly because they are trapped in the linear line of thought that holds them back from higher levels of consciousness…The wealthy aren’t interested in the means, only the end.”
Have to say, medical degree (formal education) definitely offers me the ability to amass "wealth" and certain freedoms my peers without such degrees don't have access to. Sometimes you need a certain kick in the pants to think differently, that a high school degree alone MAY not give you. Medical specialization is VERY SPECIFIC in certain aspects.
I disagree with this one:
Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge.“Many world-class performers have little formal education, and have amassed their wealth through the acquisition and subsequent sale of specific knowledge,” he writes. “Meanwhile, the masses are convinced that master’s degrees and doctorates are the way to wealth, mostly because they are trapped in the linear line of thought that holds them back from higher levels of consciousness…The wealthy aren’t interested in the means, only the end.”
Have to say, medical degree (formal education) definitely offers me the ability to amass "wealth" and certain freedoms my peers without such degrees don't have access to. Sometimes you need a certain kick in the pants to think differently, that a high school degree alone MAY not give you. Medical specialization is VERY SPECIFIC in certain aspects.
I do agree with that part. I remember a conversation with an attorney one time that went something like this. "If I had it to do all over again, I would not spend all the time in school that I did. Most of my clients make a lot more money than I do and they spent less time in school".
Great article. Thanks for posting this @Bryan Hancock
It is fascinating to read the differences listed here. The biggest take-away from this should be noting how many others live in fear. Even trying to get started in something that can make them money can have paralyzing affects. The biggest fear is that taking action will lose money and possibly your credit standing. There is little consideration of the actual learning that comes with that process.
There is never a reason to knock anything that someone else does. It is easy to want to though. Someone that wants to spend their time and efforts on formal education can and should do so to the height of their desires. I just don't believe that it is necessary.
Some level of education is certainly helpful. There are many other ways to educate yourself besides school though.
Great article. Thanks for posting this @Bryan Hancock
It is fascinating to read the differences listed here. The biggest take-away from this should be noting how many others live in fear. Even trying to get started in something that can make them money can have paralyzing affects. The biggest fear is that taking action will lose money and possibly your credit standing. There is little consideration of the actual learning that comes with that process.
There is never a reason to knock anything that someone else does. It is easy to want to though. Someone that wants to spend their time and efforts on formal education can and should do so to the height of their desires. I just don't believe that it is necessary.
Some level of education is certainly helpful. There are many other ways to educate yourself besides school though.
Hmm. I dont think you would let someone cut you open with a scalpel or treat your kid's cancer without a "formal education". Maybe you would, I dont know. Some people think doctors are evil and tumors melt away with herbal drinks in the vitamix, and that we somehow are trying to BS people and the internet knows better, haha. But I digress.
I think spending 13+ years specializing in medicine is a big risk, its "going out on a limb", and causes plenty of fear and uncertainty, just as someone jumping into real estate or a start up. Thoughts?
Great article. Thanks for posting this @Bryan Hancock
It is fascinating to read the differences listed here. The biggest take-away from this should be noting how many others live in fear. Even trying to get started in something that can make them money can have paralyzing affects. The biggest fear is that taking action will lose money and possibly your credit standing. There is little consideration of the actual learning that comes with that process.
There is never a reason to knock anything that someone else does. It is easy to want to though. Someone that wants to spend their time and efforts on formal education can and should do so to the height of their desires. I just don't believe that it is necessary.
Some level of education is certainly helpful. There are many other ways to educate yourself besides school though.
Hmm. I dont think you would let someone cut you open with a scalpel or treat your kid's cancer without a "formal education". Maybe you would, I dont know. Some people think doctors are evil and tumors melt away with herbal drinks in the vitamix, and that we somehow are trying to BS people and the internet knows better, haha. But I digress.
I think spending 13+ years specializing in medicine is a big risk, its "going out on a limb", and causes plenty of fear and uncertainty, just as someone jumping into real estate or a start up. Thoughts?
Whoa... Don't get me wrong. I do believe that doctors and other professionals are important and serve us well in society. I also stated that people that want this education should pursue it. I just don't believe that it is vital to making money.
People that are investing in real estate to not automatically fall into the category described by this article. I would venture to say that it is only a small percentage.
People make a ton of money doing all sorts of businesses. But many businesses don't make a lot of money.
I meet up occasionally with a group of entrepreneurs from around the world. It is fascinating to see what they are working on and listen to their success stories. Only a small percentage of them will have great success as well. Those are the people this article is talking about. Some of them may be engaged in real estate businesses as well.
Put the three years I put in after college on construction crews next to the seven years in graduate school getting a PhD in poetry. One of them was far far more formative on my REI work. I love them both, and you can have both. It makes for a rich life. According to Harold Kushner, a meaningful life consists of accomplishments and friends. Checkov wrote and was a a doctor: " Medicine is my wife and literature is my mistress. I Go from one to another on different nights and neither suffers from my infidelities."
This is one example I read a post on BP about a guy quitting his job has a$100,000 savings wants to get into real estate. The question he had is that he is taking a world trip for some months and wanted to know if he should buy a cheap condo in a city of Florida that he never been to, so he would not have to pay storage on his furnishings
I am not a rich person but I cant believe anyone who is would even entertain that thought.
Basic common sense and the need to create wealth not destroy it I would think is an important trait
Yes I largely agree with this article. I have been blessed in REI and was able to financially retire as a young man.
But I continue to work as hard as ever in it. It is not work for me. Making money in REI and helping others is my passion.
I stay away from negativity in my life with a passion. I hang around successful positive people at all times. I learn from them and they from me.
Yes most people have been trained to go to school and to work for someone else. I started out in computer science but soon grew tired of working in a cubicle for limited money. The financial rewards in REI are UNLIMITED.
I still work 50 and 60 hours a week in real estate, but don't have to. I could kick my feet up. But it gets boring very quickly.
Great article!
Great article and I think the photos go along with the sections perfect! I think this article is a great talking piece amongst those of your inner circle and in general conversations to see where others stand at.
Thank you for sharing it with the BP community.
Put the three years I put in after college on construction crews next to the seven years in graduate school getting a PhD in poetry. One of them was far far more formative on my REI work. I love them both, and you can have both. It makes for a rich life. According to Harold Kushner, a meaningful life consists of accomplishments and friends. Checkov wrote and was a a doctor: " Medicine is my wife and literature is my mistress. I Go from one to another on different nights and neither suffers from my infidelities."
Haha, hilarious quote from Checkov!
Only reason I'll have to disagree with the article is the divisive way "rich vs average" is used. I'm in no way rich and consider myself average, but I think more like the article says rich people think and there are probably plenty of rich people who think the way the article says average people think.
It's about getting rich, but it's presented in a rather tabloid format.
@Craig Wilcox I'm struggling with this one right now as a recent college graduate. I know in theory that following your passions leads to success, but it's hard applying that in your own life when the future looks so uncertain. Taking that job is the safest bet, but it may not be the best one. I'm still working on developing a rich person's mentality.
All the info in the article is misleading and it doesn't address the main topic of ''wealth and happiness''.
The true wealth consists of several items. My 70 year old nanny has said once:
''What does an average person want? He/she wants many things (be wealthy, travel, be happy, etc.) What does a sick person want?-Only one thing: to be healthy.''
I know a person who is one of the 15 wealthiest people in the world, he is in his 70s, but he is miserable. His kids don't love him and waiting for him to die, he has been married multiple times, he doesn't trust anybody, drinks a lot, etc. I'm sure he would trade places with me if he had an opportunity, but I would not trade with him...
True wealth is the combination of health, happiness, $, love, etc. My choice is to be happy, healthy and have enough $ to do anything I want when I want to. You can't take money in the grave with you after you die :-)
I have never met someone who said..."hey this sucks, I have too much formal education" Maybe they felt it..
Ron Popeil, pocket fisherman, set it and forget it oven guy, he wrote a book - paraphrasing now...he made 100s of millions, and said that he would have made billions had he had a formal business education.
Rich is a frame of mind. Look if you are living in America with running water and electricty much less heat, hot water and a refrig/tv you are living better than royalty a couple hundred years ago.
Follow your passion. Figure out your top 3. Perhaps start with number two and keep your ultimate passion free and clear of commercial bias. (My mistake) Revisit passions as interchangable sources of inspiration.
Absolutely, it is a hard decision and it sure seemed like a harder path at the time! I do not know your situation, but looking back I had lots of energy and enthusiasm but very little to sacrifice. Sure, I may have more knowledge now but I also have so many more responsibilities.
I wish I had some inspirational message to help you take that jump. When I was in that situation, I had the desire, the energy, and family that would have kept me off the street if I failed. What I didn't have was a partner with the same.
Today, my wife is the best partner I could ask for but we have to be more cautious and calculated. We are going to make a legacy for our family. Better late than never.
Best wishes!
i disagree. college teaches you how to pass a test. you may learn things along the way, but most things you are never going to need in real life. especially needing to take something as dumb as art credits in order to pass a computer degree. as robert kiyosaki said, college teaches you how to work for someone, not how to work for yourself.
i talk to my friends all the time who are taking business courses but dont know the first thing on how to run a business.
colleges teach you how to dig for information in order to pass a test. they dont teach you how to apply that stuff to real world scenarios, because 99% of the stuff is never going to happen in real life.
college is the most overrated thing. Before government got involved (just like everything) it used to be something useful . but now anyone who is looking for a job, needs that useless piece of paper that says they passed college
i disagree. college teaches you how to pass a test. you may learn things along the way, but most things you are never going to need in real life.
i talk to my friends all the time who are taking business courses but dont know the first thing on how to run a business.
colleges teach you how to dig for information in order to pass a test. they dont teach you how to apply that stuff to real world scenarios, because 99% of the stuff is never going to happen in real life.
I guess my college degree was different than the experiences your friends are having. I studied business and computer science in college. Went on to get my MBA and MS in Computer Systems Management.
Everything I did was project based. I didn't take a single final "test" after my freshman year. We applied everything we learned and built on those classes year after year.
Accounting was the basis for the business math section. No one can argue that accounting skills aren't useful in running a business. From this base we learned finance, then banking and finally risk assessment. Now I've never used high level risk assessment in my REI career, but I've used accounting and finance skills daily. Those are numbers, they apply to the real world and we use them to run our businesses every day.
Now I also studied entrepreneurship, never learned how to spell it though :) This is were I learned the basis of business is persistence. High school, college, PhD or MD, the single trait that makes business owner successful is persistence. Some ignore failure, other refuse to acknowledge accounting losses as useful stats and other just win from day 1. They all persisted.
I've used a huge amount of what I learned in college in my business life, my personal life and my social life. To classify something as worthless just because it fits a certain profile (college, conservative, Chinese) is shortsighted. Buying a piece of paper with a degree on it doesn't do you any good. In fact the piece of paper isn't any good for entrepreneurship, but everything you learned along the way could be useful at some point.
This is a great article. Most people are not willing to take the time and risk of being without a steady paycheck to pay their bills. As stated in "The E myth", most who do take the plunge don't understand the different hats that must be worn in order to be successful. Because they don't most understand this requirement, they fail. I feel a college education does serve it purpose to society. Me, myself and most successful people have some college, but specific knowledge applied properly will set you up to be rich. College is not require for everyone that is successful.