Dedicated to Deposits: Deals, Data, and Discussion

What Separates The Rich From Everybody Else


Rich people are different, and it's not only because they have tons of money. It's also about their mindset. They think differently. The right thoughts lead to the right actions and the results – vast riches.

Steve Siebold, author of How Rich People Think, over the last 30 years has interviewed more than 1,200 of the world's wealthiest people. What did he find? It's not that they are necessarily smarter than the average Jane or Joe, their secret is that they look at money in a completely different way than everybody else.

As for what puts them atop the money tree, they hold fast to six key beliefs.

The path to riches is not a straight line

Siebold says most of us are taught to trade hours for dollars, which is the reason the average person makes little money. The rich earn their fortunes tapping into creativity and coming up with new ideas that serve people. "They understand that if you want to make money, you look for problems to solve. You start by identifying problems and use creativity to come up with a solution," says Siebold. He says it's not about how many hours you can work or the amount of midnight oil you can burn; it's training your mind to think about old problems in new ways. Use non-linear thinking to earn more money.

Be emotional and logical

While you don't want to blend the two, truth is, there's a time to be emotional and time to be logical. Siebold says the middle class tends to blend emotional thinking in their decision making process, which clouds their judgment. "If you're passionate about something it can skew your judgment. For example, you can't be objective about your spouse," says Siebold.

"Specific knowledge is worth more. You find a niche, offer specific solutions and work it," -Steve Siebold

The rich use left brain, logic-based, emotionless thinking when it comes to matters of earning, investing and saving money, he contends. The rich use emotions to motivate them to take action and they rely on logic when it comes time to do the work. However, amateurs invest on emotion. He cites the recent Twitter IPO where there was so much emotional, with everybody wanting not to miss out, that the opening price was high, but by the close of the first day of trading, the stock was about a $1 less than it's opening price. "When people let emotions enter into investments, they buy on greed and sell on fear, versus looking at the fundamentals, like the history of a stock. Emotions and money don't mix," says Siebold. Know when to be logical and when to let emotion spur you to smart actions.

There's no shortage of money in the universe

Because money is created through ideas that solve problems, and there are more problems than will ever be solved, that means there are an infinite amount of ideas that can yield big bucks. While many people see the world plagued by problems, the rich, says Siebold see those same problems as opportunities to amass even more money. "Look at Facebook. Apparently there was a problem with people wanting to connect, which nobody was really focused on. But Facebook found a way to connect people. Facebook built an empire on offering a way to find people, to connect," says Siebold.

Expect to be rich

While some folks are focused on, "why can't I?", those who end up with wealth, ask, "why not me?" Simply put, they expect to be rich. Siebold says too many people have a "lottery mentality" and have been brainwashed to believe the only chance they have to get rich is by picking the right numbers or playing slot machines. The rich, on the other hand, expect to earn more money every year and they are not shocked when the millions keep rolling into their lives.

What's the difference? They have trained themselves to expect big things to happen, and consequently they are confident enough to take bold, aggressive and fearless actions in their pursuit of wealth. Siebold explains how this works. "Because they have a positive mindset, right off the bat, that works in their favor. Then once they get a little success it starts feeding on itself. If you expect to make money, then you will behave in a way, take appropriate actions to make that happen. Then you start stacking success."

Remember what your mother told you about self-fulfilling prophecy? You think, therefore you are. Expect to be rich and you're more likely to make that happen.

Who says I can't have it all?

Despite the mantra that you can't have it all, that falls on deaf ears for rich people. "The rich know you can have whatever you want, and through leverage you can earn more while working less," says Siebold. What does he mean by this? He says the secret of the rich is that they don't really work like the rest of us. He uses the example of Donald Trump. "He's leveraging everything he has – his time, influence. The show The Apprentice just made his name, his brand bigger. Believe me, he and other rich people aren't working like us, they aren't sitting in an office from 9-5, yet they they make more in the first five minutes of their day than some of us do all year," says Siebold.

He explains that they are not working in the traditional sense. The rich have a different model, "They are talking to people, making contacts. They have other people working while they are leveraging."

Self education is critical

There's a big debate in this country about the value of a college education, given the hefty price tag and a still less than stellar job market. While few would say skip higher education altogether, Siebold says formal education may not be a the golden ticket. Sure it will help you make a living, but self-education, he says, will make you a fortune. "What I learned in college in the 80s, or what someone learned in college 10 years ago, may not be all that useful given the world today," says Siebold. College is good for general knowledge, but those who become rich know that specific knowledge can lead to the path of prosperity. "Specific knowledge is worth more. You find a niche, offer specific solutions and work it," says Siebold.

While the masses seek entertainment, the wealthy are reading, listening to audio programs, attending seminars and networking with powerful people who can help raise their level of awareness, says Siebold.

But the good news is, given the vast resources online, self education is increasingly possible. "You can learn from the greatest minds online. It's easier to get rich today in America more than ever. Start with solving a problem."


Related Posts

Comments

Please log in to comment on this post.

7 comments.
Comment #1 by Gaelicwench posted on
Gaelicwench
"The right thoughts lead to the right actions and the results – vast riches."

 

Are you that naiive? It's not that black and white; not anymore! This post makes me see so much red, it must come from the artery in my brain that's about to be cause for a stroke. I will cease from writing anything more, else I chance getting my comment tossed. Unreal!

15
Comment #2 by 51hh posted on
51hh
"He explains that they are not working in the traditional sense. The rich have a different model, "They are talking to people, making contacts. They have other people working while they are leveraging."'

"Leveraging", that is what they do.  Wow, I missed that, big time:D

5
Comment #3 by Rosedala posted on
Rosedala
This article makes a lot of sense and logic.  It's true this assessment of the rich.  I think Sheryl Nance-Nash always writes interesting and useful articles in a nutshell.   :o)  

P.S.  Not to change the subject but...what happened to my personal avatar?

2
Comment #4 by paoli2 posted on
paoli2
I especially like the one about "Self-Education".  Why waste time in college learning old stuff from books when one can be learning about the real world in real time.   Anything I have ever wanted to know I was able to find out from others who have already "been there, done that"  and could teach me about their experiences, good and bad.  You don't get that from books in a college no matter what your major is.  To me, education comes from researching a variety of opinions and then making up one's mine what you really want to believe.   My mom could neither read nor write but she was one of the smartest women I ever knew.  I was the only one of her 8 kids that went to school or graduated.  However, my real education came from her and not from books in school.

1
Comment #5 by Gaelicwench posted on
Gaelicwench
paoli2, I definitely concur with you about self-education, which is how I learned all of which I know. However, it wasn't from listening to others based on their opinions, since opinions are just that. There's nothing scientific to back it up as fact.

The way I've chosen to self-educate is to read science magazines, articles, papers, ebooks all written by degreed authors. From those resources I gleen information they wrote after doing experiments and were able to do so based on fact, not opinion. It can be on any subject. Statistics, research; my favorite is the science experiments done in the Large Hadron Collider to try and create anti-matter as a means of fueling future rocket ships in order to travel the speed of light, or nearly so. I understand Einstein's theory of relativity, even without ever having attended a college science class.

My highest regard to your mother, who may not have known how to read or write, but she got her smarts from what is known as wisdom. Too few have this wonderful gift, unfortunately. Cheers!

1
Comment #6 by paoli2 posted on
paoli2
Gaelic:  I may not have made myself clear.  It's true I like to learn from experiences people have had in life but that doesn't mean I don't research and read tons of books and go to seminars etc.  I love to soak up information on any subject and like you posted it should be by those who are experts in their fields.  My mom once told me that people who read too much wear out their brains and go crazy.  :)  I developed my love of reading as a child and it's a habit I have taken into adulthood.  They say "knowledge is power" and that is true but we have to make sure we are getting that knowledge from the right people.  So glad to hear you are on the right track when it comes to securing your knowledge.

1
Comment #7 by Gaelicwench posted on
Gaelicwench
paoli2, my apologies to you. Yes, we can indeed learn from others' experiences, and we are. I've learned a lot from this website regarding finances. Ken's inputs has helped me tremendously; he's able to put things down in laymen's terms, that of which won't cause my eyes to glaze over. LOL

In my mid-50s now, I still love to learn new things. My biggest weakness is to ask lots of questions. For me, it doesn't end with a question, I give the answer and that's it. I have to ask why, how, where, when or who....beyond the basic answer.

Thank goodness for technology, and goodonya for self-educating yourself as well.

Regards! Jo

1