What the Rich Know That the Poor Don’t

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I believe that everyone has the potential to become rich, but why are the resources found only in the hands of a few? This is one of the questions that come up often. But I think the answer is not farfetched.

The rich people have learnt powerful skills and timeless principles that they practice every day and this has allowed them to remain rich. These skills and principles which they have mastered, is what separates them from everyday people, it is what makes them remain in riches (wealth). Circumstances may change, but principles remain the same.

Here are a few of those principles;

A. Rich people Think Abundance, but Poor People Think Lack.

The rich have a completely different mindset when it comes to how to make money. It begins from how they think. Scripture says “as a man thinks in his heart so is he”. One thing the rich have been able to master is their act of thinking. They understand that their thoughts would breed actions and their actions would breed results. They understand the first law of success which is “First within, then without”. Who you have become on the inside will be reflected on the outside. When you realize that most people are poor, it is good for you to make up your mind that you won’t go along that mind path that they have chosen to follow.

B. Rich People See Opportunity, Poor People See Problems.

Imagine a teacher who got an appointment to teach at a secondary school and he had to teach the senior class, the ones preparing for their final exams. He taught them throughout the term and after they had written the exams, a large number of them failed and had to repeat the class. The teacher could react to this by saying “I don’t even understand why these students are so dull, after all my efforts of teaching, they still failed”. Yet another teacher comes and sees the amount of failure among the students and he immediately recognizes an opportunity to make money while imparting positively into the lives of these students. This can be done either by writing a book on practical guides to passing their exams excellently well or he organizes extra classes for the students, where they have to pay an extra token to get coaching for their exams. The difference between the two teachers is that one saw a problem and the other saw an opportunity.

C. Rich People Allow The Interest On Their Investment to Compound.

The truth is no matter how great talent or efforts, some things just take time warren buffet says, building wealth is one of them. There is always a time interval between the time when you make investments and when your investments will yield dividends. The rich understands the law of delayed gratification.

The rich understands the principles of compound interest and they make it work for them. They simply take the interest that accrues from an initial capital invested and put it back into the business to generate more profit from the initial profit.

D. Rich People Mind Their Associations While The Poor Don’t.

It is said that your network will determine your net worth. Rich people are careful and deliberate in creating a particular kind of network around them, people with empires in their mind, people whose ideas if worked on and invested in will become gold mines. Even the scripture says he who works with the wise will be wise. Spending time with wealthy people is vital if you want to succeed financially. You’ll be amazed at how your perspective changes when you hear people talking about how much they make in a single day.

I heard the story of Jacky Kennedy, the once upon a time wife of John F Kennedy, when she said “If I was broke, I know what I will do to get back on my feet, I will go to the most expensive restaurants in new york, buy myself a glass of water and eavesdrop on the conversations of the rich”. They are careful not to keep within their circle of friends people who are myopic in their thinking. This is how important your association can be.

E. Rich People Make Their Money Work For Them While The Poor Work For Money.

A very large number of people work for money. This is because of the impression that we were given while growing up, that to become successful, you must study hard, get good grades, go to the best schools, secure a good paying job and save until you retire. There is nothing wrong with all of this as long as you are fulfilled. But Robert Kiyosaki says the problem with this approach is that you only make money as long as you work. He said the only thing of value that you have to exchange is your time. But when we exchange our time for money, our earning potential is limited because you can only make money while at your job. And so to make more money you have to work longer hours, which is physically taxing. He says that the rich dad told him “the poor and the middle class work for money, while the rich have money work for them. They do this by learning to invest and then putting their money in assets like businesses and investments that generates passive income, until they reach the point where they don’t have to work anymore. They simply spend their money on assets while the poor spend theirs on liabilities.

Source by Kelly Erezi Umuakpero

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