21 Ways Rich People Think Differently

Well, after I saw the disgrace of advice "Break These 7 Rules and Forget About Being Rich" was, I decided to make a compilation of Steve Siebolds work for WSO.

Enjoy: (If you like it throw me an SB!)

Steve Siebold, author of “How Rich People Think,” spent nearly three decades interviewing millionaires around the world to find out what separates them from everyone else. It had little to do with money itself, he told Business Insider. It was about their mentality. ”[The middle class] tells people to be happy with what they have,” he said. “And on the whole, most people are steeped in fear when it comes to money.”

Average people believe you need money to make money. Rich people use other people’s money.

Linear thought might tell people to make money in order to earn more, but Siebold says the rich aren’t afraid to fund their future from other people’s pockets.
“Rich people know not being solvent enough to personally afford something is not relevant. The real question is, ‘Is this worth buying, investing in, or pursuing?’” he writes.

Average people see money through the eyes of emotion. Rich people think about money logically.

“An ordinarily smart, well-educated and otherwise successful person can be instantly transformed into a fear-based, scarcity driven thinker whose greatest financial aspiration is to retire comfortably,” he writes. “The world class sees money for what it is and what it’s not, through the eyes of logic. The great ones know money is a critical tool that presents options and opportunities.”

Average people teach their children how to survive. Rich people teach their kids to get rich.

Rich parents teach their kids from an early age about the world of “haves” and “have-nots,” Siebold says. Even he admits many people have argued that he’s supporting the idea of elitism. He disagrees. ”[People] say parents are teaching their kids to look down on the masses because they’re poor. This isn’t true,” he writes. “What they’re teaching their kids is to see the world through the eyes of objective reality––the way society really is.” If children understand wealth early on, they’ll be more likely to strive for it later in life.

Average people think rich people are snobs. Rich people just want to surround themselves with like-minded people.

The negative money mentality poisoning the middle class is what keeps the rich hanging out with the rich, he says. ”[Rich people] can’t afford the messages of doom and gloom,” he writes. “This is often misinterpreted by the masses as snobbery. Labeling the world class as snobs is another way the middle class finds to feel better bout themselves and their chosen path of mediocrity.”

Average people think MONEY is the root of all evil. Rich people believe POVERTY is the root of all evil.

“The average person has been brainwashed to believe rich people are lucky or dishonest,” Siebold writes. That’s why there’s a certain shame that comes along with “getting rich” in lower-income communities. ”The world class knows that while having money doesn’t guarantee happiness, it does make your life easier and more enjoyable.”

Average people think selfishness is a vice. Rich people think selfishness is a virtue.

“The rich go out there and try to make themselves happy. They don’t try to pretend to save the world,” Siebold told Business Insider. The problem is that middle class people see that as a negative––and it’s keeping them poor, he writes. “If you’re not taking care of you, you’re not in a position to help anyone else. You can’t give what you don’t have.”

Average people have a lottery mentality. Rich people have an action mentality.

“While the masses are waiting to pick the right numbers and praying for prosperity, the great ones are solving problems,” Siebold writes. “The hero [middle class people] are waiting for may be God, government, their boss or their spouse. It’s the average person’s level of thinking that breeds this approach to life and living while the clock keeps ticking away.”

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.”

Average people long for the good old days. Rich people dream of the future.

“Self-made millionaires get rich because they’re willing to bet on themselves and project their dreams, goals and ideas into an unknown future,” Siebold writes. “People who believe their best days are behind them rarely get rich, and often struggle with unhappiness and depression.”

Average people earn money doing things they don’t love. Rich people follow their passion.

“To the average person, it looks like the rich are working all the time,” Siebold says. “But one of the smartest strategies of the world class is doing what they love and finding a way to get paid for it.”On the other hand, middle class take jobs they don’t enjoy “because they need the money and they’ve been trained in school and conditioned by society to live in a linear thinking world that equates earning money with physical or mental effort.”

Average people set low expectations so they’re never disappointed. Rich people are up for the challenge.

“Psychologists and other mental health experts often advise people to set low expectations for their life to ensure they are not disappointed,” Siebold writes. “No one would ever strike it rich and live their dreams without huge expectations.”

Average people believe you have to DO something to get rich. Rich people believe you have to BE something to get rich.

“That’s why people like Donald Trump go from millionaire to nine billion dollars in debt and come back richer than ever,” he writes. “While the masses are fixated on the doing and the immediate results of their actions, the great ones are learning and growing from every experience, whether it’s a success or a failure, knowing their true reward is becoming a human success machine that eventually produces outstanding results.”

Average people believe the markets are driven by logic and strategy. Rich people know they’re driven by emotion and greed.

Investing successfully in the stock market isn’t just about a fancy math formula. “The rich know that the primary emotions that drive financial markets are fear and greed, and they factor this into all trades and trends they observe,” Siebold writes. ”This knowledge of human nature and its overlapping impact on trading give them strategic advantage in building greater wealth through leverage.”

Average people live beyond their means. Rich people live below theirs.

“Here’s how to live below your means and tap into the secret wealthy people have used for centuries: Get rich so you can afford to,” he writes. ”The rich live below their means, not because they’re so savvy, but because they make so much money that they can afford to live like royalty while still having a king’s ransom socked away for the future.”

Average people let money stress them out. Rich people find peace of mind in wealth.

The reason wealthy people earn more wealth is that they’re not afraid to admit that money can solve most problems, Siebold says. ”[The middle class] sees money as a never-ending necessary evil that must be endured as part of life. The world class sees money as the great liberator, and with enough of it, they are able to purchase financial peace of mind.”

Average people would rather be entertained than educated. Rich people would rather be educated than entertained.

While the rich don’t put much stock in furthering wealth through formal education, they appreciate the power of learning long after college is over, Siebold says. ”Walk into a wealthy person’s home and one of the first things you’ll see is an extensive library of books they’ve used to educate themselves on how to become more successful,” he writes. ”The middle class reads novels, tabloids and entertainment magazines.”

Average people focus on saving. Rich people focus on earning.

Siebold theorizes that the wealthy focus on what they’ll gain by taking risks, rather than how to save what they have. ”The masses are so focused on clipping coupons and living frugally they miss major opportunities,” he writes. ”Even in the midst of a cash flow crisis, the rich reject the nickle and dime thinking of the masses. They are the masters of focusing their mental energy where it belongs: on the big money.”

Average people play it safe with money. Rich people know when to take risks.

“Leverage is the watchword of the rich,” Siebold writes. ”Every investor loses money on occasion, but the world class knows no matter what happens, they will aways be able to earn more.”

Average people love to be comfortable. Rich people find comfort in uncertainty.

For the most part, it takes guts to take the risks necessary to make it as a millionaire––a challenge most middle class thinkers aren’t comfortable living with. ”Physical, psychological, and emotional comfort is the primary goal of the middle class mindset,” Siebold writes. World class thinkers learn early on that becoming a millionaire isn’t easy and the need for comfort can be devastating. They learn to be comfortable while operating in a state of ongoing uncertainty.”

Average people never make the connection between money and health. Rich people know money can save your life.

While the middle class squabbles over the virtues of Obamacare and their company’s health plan, the super wealthy are enrolled in a super elite “boutique medical care” association, Siebold says. ”They pay a substantial yearly membership fee that guarantees them 24-hour access to a private physician who only serves a small group of members,” he writes. ”Some wealthy neighborhoods have implemented this strategy and even require the physician to live in the neighborhood.”

Average people believe they must choose between a great family and being rich. Rich people know you can have it all.

The idea the wealth must come at the expense of family time is nothing but a “cop-out”, Siebold says. ”The masses have been brainwashed to believe it’s an either/or equation,” he writes. “The rich know you can have anything you want if you approach the challenge with a mindset rooted in love and abundance.”

 

You're piggybacking on this other post that was so loved . A lot of of this stuff is common observation (it's like telling you: Look, the clear skies are blue ! Isn't that amazing... )

I disagree with his last point [on marriage]. While marriage can start as a positive catalyst in wealth building, it eventually has an inflection point and it changes to where it becomes an either/or equation.

Winners bring a bigger bag than you do. I have a degree in meritocracy.
 

A lot of this stuff is just crap. "Markets are driven by emotion and greed," take it easy Oliver. A lot of rich people are just lucky, most acquire their wealth because they have balls (i.e., not too risk-averse) and others still are simply brilliant.

That's basically it. You do raise a good point though about education. I have noticed this.

“Elections are a futures market for stolen property”
 
Esuric:

A lot of this stuff is just crap. "Markets are driven by emotion and greed," take it easy Oliver. A lot of rich people are just lucky, most acquire their wealth because they have balls (i.e., not too risk-averse) and others still are simply brilliant.

That's basically it. You do raise a good point though about education. I have noticed this.

I didn't realize having balls was luck...

The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee WSO is not your personal search function.
 

Before an earnings call, you'll see the stock price jump. This isn't purely due to numbers, because the "earnings" haven't been released yet. The stock price jumps before the earnings call because of anticipation and emotion.

This is an example of markets being driven by emotion. There is no way in hell your telling me it doesn't play a factor in stocks. I can count a legion of successful traders who buy stock because they have a "feeling" complimented with a side of trusting the good management of the company that's doing bad figuratively.

Esuric:

A lot of this stuff is just crap. "Markets are driven by emotion and greed," take it easy Oliver. A lot of rich people are just lucky, most acquire their wealth because they have balls (i.e., not too risk-averse) and others still are simply brilliant.

That's basically it. You do raise a good point though about education. I have noticed this.

 
Best Response
Lambie:

Before an earnings call, you'll see the stock price jump. This isn't purely due to numbers, because the "earnings" haven't been released yet. The stock price jumps before the earnings call because of anticipation and emotion.

This is an example of markets being driven by emotion. There is no way in hell your telling me it doesn't play a factor in stocks. I can count a legion of successful traders who buy stock because they have a "feeling" complimented with a side of trusting the good management of the company that's doing bad figuratively.

Esuric:

A lot of this stuff is just crap. "Markets are driven by emotion and greed," take it easy Oliver. A lot of rich people are just lucky, most acquire their wealth because they have balls (i.e., not too risk-averse) and others still are simply brilliant.
That's basically it. You do raise a good point though about education. I have noticed this.

Stocks also drop prior to earnings and then get crushed after earnings. The emotion is still stemming from something. Also, please refer me to all the hedge funds that go before their investment committees with "feelings." I just have this feeling... No brah... It's more like here's my white paper and the thesis supports my "feeling." You can have all the feelings you want but there needs to be analysis there too.

Sure, a lot of people buy stocks on hunches and they might even make money on some of those hunches, but it also doesn't mean they know what they are doing...

 
Lambie:

Before an earnings call, you'll see the stock price jump. This isn't purely due to numbers, because the "earnings" haven't been released yet. The stock price jumps before the earnings call because of anticipation and emotion.

This is an example of markets being driven by emotion. There is no way in hell your telling me it doesn't play a factor in stocks. I can count a legion of successful traders who buy stock because they have a "feeling" complimented with a side of trusting the good management of the company that's doing bad figuratively.

Esuric:

A lot of this stuff is just crap. "Markets are driven by emotion and greed," take it easy Oliver. A lot of rich people are just lucky, most acquire their wealth because they have balls (i.e., not too risk-averse) and others still are simply brilliant.
That's basically it. You do raise a good point though about education. I have noticed this.

I'm not saying that markets are void of greed and emotion. I just want to stress that greed, emotion and rational calculation/logic are not mutually exclusive. An individual can be simultaneously greedy, emotionally aroused and can still think/operate rationally. In fact, emotion is often the catalyst for rational thought and action, though obviously not always (i.e., the fear of too much leverage/risk leading to increased diversification, higher cash holdings, etc). In the end, though, prices are determined by fundamentals (though the term 'in the end' is somewhat vague).

“Elections are a futures market for stolen property”
 

"Average people think selfishness is a vice. Rich people think selfishness is a virtue."

Just because I realize that you have to be a little selfish to get ahead doesn't mean that I think it's virtuous in any sense, rather a necessity. I don't aspire to be selfish I just need to be to get where I want to go. There's a difference there.

This to all my hatin' folks seeing me getting guac right now..
 

Steve Siebold didn't mean it in the Scrooge "hehehe, my money is all mine" type of selfishness, but rather he was emphasizing not being obvious with wealth.

Ex. Lottery Winner = Gold Plated Lamborghini Someone Who Knows How To Handle Money = Black Aston Martin

Cruncharoo:

"Average people think selfishness is a vice. Rich people think selfishness is a virtue."

Just because I realize that you have to be a little selfish to get ahead doesn't mean that I think it's virtuous in any sense, rather a necessity. I don't aspire to be selfish I just need to be to get where I want to go. There's a difference there.

 

”The rich live below their means, not because they’re so savvy, but because they make so much money that they can afford to live like royalty while still having a king’s ransom socked away for the future.”

This could be one of the single dumbest things ever written. So, in order to save a lot of money, I need to make a lot of money....thanks for the tip captain obvious. (just to be clear, I'm singling out Siebolds, not the OP).

 

theres a lot of bias in this post mixed with some crap portrayed as facts. and I don't have anything against rich people I like to be rich myself. god bless anyone who has earned his money not on the expense of rest of society.

"Average people earn money doing things they don’t love. Rich people follow their passion."

wtf is this double bullshit?! so the policeman, the teacher, the fireman, the artist, the mechanic and so on are forced to do what they do and they hate their jobs?! cmon bro's use some common sense.

no doubt ambitions will vary according to circumstances and are directly conditioned by it. theres nothing new here. but rich people and healthy family?! L mothafuckin OL yea unfortunately facts make you laugh at it.

what is the ultimate end of any normal human being's dream? create a family and live a happy comfortable life surrounded by people one loves and trusts. everyone and each of us works toward this. the definition of happiness, expectations and ambitions might vary drastically but that's the end we all want to meet.

now, lets take a case to illustrate: consider a mechanic, a construction worker or a person from the middle class who provides for his family have barbeques with his relatives and friends on weekends and goes to Miami for vacation. and a billionaire or rich dude who has been divorced a couple of times, has his own island but is surrounded by people who see the dollar sign $$ in him and is not wished well by his own kin, and the chances are has no real friends and family.

now answer this: who's better off here, the smartest and the most successful?

now that you answered it go back and read the post again and see how much sense it will make.

fact: when I used to worked with big shots and wealthy dudes I saw that in general their lives could be anything but happy.

cheers!

There are no great men, only great challenges that ordinary men are forced by circumstances to overcome. -William F. Hasley
 

First off, the amount of people who become firemen, policemen, and etc. because it's what they love are few and far inbetweeen, I can tell you about numerous HS dropouts who found their way to those respectable professions because it's the only thing they COULD do. Even if someone KIND of enjoyed being say, a teacher, they might not enjoy the income, which is why we have idiotic teacher strikes across the country. So much for being content, hm?

Why do you have this image in your head being poor or middle class means you automatically have "real" friends, and an enjoyable social life? Why do you imagine being rich must mean people want to use you, that you'd hate your life, and be unhappy?

Some of the most happiest people I know come from each of these categories, poor, middle-class, and "1%", they have barbecues, they go out with their friends, go to Miami, etc. etc.

They all love life. If anything, you're the one with flawed thinking.

brabus1:

theres a lot of bias in this post mixed with some crap portrayed as facts. and I don't have anything against rich people I like to be rich myself. god bless anyone who has earned his money not on the expense of rest of society.

"Average people earn money doing things they don’t love. Rich people follow their passion."

wtf is this double bullshit?! so the policeman, the teacher, the fireman, the artist, the mechanic and so on are forced to do what they do and they hate their jobs?! cmon bro's use some common sense.

no doubt ambitions will vary according to circumstances and are directly conditioned by it. theres nothing new here. but rich people and healthy family?! L mothafuckin OL yea unfortunately facts make you laugh at it.

what is the ultimate end of any normal human being's dream? create a family and live a happy comfortable life surrounded by people one loves and trusts. everyone and each of us works toward this. the definition of happiness, expectations and ambitions might vary drastically but that's the end we all want to meet.

now, lets take a case to illustrate: consider a mechanic, a construction worker or a person from the middle class who provides for his family have barbeques with his relatives and friends on weekends and goes to Miami for vacation. and a billionaire or rich dude who has been divorced a couple of times, has his own island but is surrounded by people who see the dollar sign $$ in him and is not wished well by his own kin, and the chances are has no real friends and family.

now answer this: who's better off here, the smartest and the most successful?

now that you answered it go back and read the post again and see how much sense it will make.

fact: when I used to worked with big shots and wealthy dudes I saw that in general their lives could be anything but happy.

cheers!

 
Lambie:
First off, the amount of people who become firemen, policemen, and etc. because it's what they love are few and far inbetweeen, I can tell you about numerous HS dropouts who found their way to those respectable professions because it's the only thing they COULD do. Even if someone KIND of enjoyed being say, a teacher, they might not enjoy the income, which is why we have idiotic teacher strikes across the country. So much for being content, hm?
 

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There are no great men, only great challenges that ordinary men are forced by circumstances to overcome. -William F. Hasley

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