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Rich People Think Differently
Old 09-05-2012, 01:03 AM   #1
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Rich People Think Differently

21 Ways Rich People Think Differently - Yahoo! Finance

I especially liked #14:

Quote:
"[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."
I would go even further and say, in our bizarre culture, financial independence is a prerequisite to sanity.
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Old 09-05-2012, 01:17 AM   #2
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A mix of good statements and a few cliches.

If I had to pick one:

Quote:
18. Average people play it safe with money. Rich people know when to take risks.
Thanks for posting.
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Old 09-05-2012, 07:53 AM   #3
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Great article. I would quibble with the (7. Average people earn money doing things they don't love. Rich people follow their passion.)

It doesn't matter where the money comes from.

I think I would make a distinction between the mere millionaire and the truly rich.

Also. (20. 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.)

True but a mere millionaire is not super wealthy and cannot afford this. Not sure if he thinks a millionaire is super wealthy.
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Old 09-05-2012, 08:24 AM   #4
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I would quibble with the (7. Average people earn money doing things they don't love. Rich people follow their passion.)
In my case (not being "rich"), it was definitely a case of "chasing the buck" wherever I could for the benefit of my family and me.

At best, the job/positions I held over many years were bearable, but not those I would have chosen if I was truly free to persue my bliss.

I agree with the author from my POV, after being a "wage whore" for many decades.
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Old 09-05-2012, 09:57 AM   #5
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I like #12. I think this is a trait of most people who frequent this forum.

12. Average people live beyond their means. Rich people live below theirs
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Old 09-05-2012, 10:42 AM   #6
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The only thing rich people have on those not so rich is more choices. Bill Gates has more choices than I do he can make. Notice I did not say whether those choices were good or bad, but he has more than I do. That's about it.......
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Old 09-05-2012, 10:45 AM   #7
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I disagree with the one about using other people's money. You don't have to use other people's money to get rich. Just use your own. You just need to be patient because starting out most people have little money. I would challenge the fact that investing on margin or credit would actually help the average person.
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Old 09-05-2012, 12:34 PM   #8
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The only thing rich people have on those not so rich is more choices. Bill Gates has more choices than I do he can make. Notice I did not say whether those choices were good or bad, but he has more than I do. That's about it.......
What I think you meant was that rich people have more "options" from which to choose. Nonetheless, simply having more options doesn't mean you necessarily choose more wisely.
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Old 09-05-2012, 01:28 PM   #9
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What I think you meant was that rich people have more "options" from which to choose. Nonetheless, simply having more options doesn't mean you necessarily choose more wisely.
+1
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Old 09-05-2012, 01:58 PM   #10
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I like #12. I think this is a trait of most people who frequent this forum.

12. Average people live beyond their means. Rich people live below theirs
Some of the items on the list I don't agree with very much. Others I agree with partly, or perhaps mostly.

But this one, #12, is the one I agree with totally. Thanks for posting it here.
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Old 09-05-2012, 02:01 PM   #11
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In addition to 12, I liked 11 which was popularized by Warren Buffett
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11. Average people believe the markets are driven by logic and strategy. Rich people know they're driven by emotion and greed.
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Old 09-05-2012, 10:07 PM   #12
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No. 1 misquotes the Bible (1 Timothy 6:10). The correct saying is that "LOVE OF money is the root of all evil".

I don't understand what No. 9 is trying to say. In any case, I don't consider Donald Trump a role model, for several reasons.

I don't agree with No. 14. For many (most?) people, saving and investing will provide a surer path to eventual FI than focusing on income.

Quote:
Originally Posted by dmpi
I disagree with the one about using other people's money. You don't have to use other people's money to get rich. Just use your own. You just need to be patient because starting out most people have little money. I would challenge the fact that investing on margin or credit would actually help the average person.
+1.
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Old 09-05-2012, 10:30 PM   #13
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I found the whole article annoying!
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Old 09-06-2012, 04:16 AM   #14
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I think some items might apply to (some individuals of) the first generation of the rich people.
However, the second and third generations develop different thinking.
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Old 09-06-2012, 09:18 AM   #15
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I think some items might apply to (some individuals of) the first generation of the rich people.
However, the second and third generations develop different thinking.
In my experience, by the third generation of wealth all the brains that allowed the original accumulation to happen have been bred out of the family.
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Old 09-06-2012, 10:28 AM   #16
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In my experience, by the third generation of wealth all the brains that allowed the original accumulation to happen have been bred out of the family.
+1 and they are no longer among the rich, having spent all the money.
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Old 09-06-2012, 12:46 PM   #17
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+1 and they are no longer among the rich, having spent all the money.
Sure, like the Rockefellers and Fords.

I'd like to be broke like any of them.

Ha
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Old 09-06-2012, 02:57 PM   #18
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+1 and they are no longer among the rich, having spent all the money.
Sometimes there are branches of wealthy families that preserve, if not grow, the original family's wealth. We just don't hear about them very often because when you've grown up with money, you tend not to advertise the fact that you have any. It is often the nouveau riche (or the children or grandchildren thereof) who feel the need to flaunt their wealth by spending lavishly.
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Old 09-06-2012, 04:17 PM   #19
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I think there is a different mindset between self-made wealth and inherited wealth.

Self-made wealth is probably more likely to remain frugal, to be more humble (for lack of a better term), to be more cautious and better stewards of their fortunes. Because the self-made rich can remember when they weren't rich. Some of them come from very humble roots, and they KNOW what's like to not have it all.

People who inherited huge fortunes -- who were born on third base and act like they hit a triple to get there, as opposed to the self-made who actually *did* hit a triple -- often have no "grounding" about understanding what it's like to not have it all and have everything you could ever ask for. It's certainly a generalization, but in my experience the self-made rich are more real in the general case, because they have experienced NOT being rich. It may also be true (perhaps more with entertainers and athletes than in business) that some who just found new wealth will act like their new gravy train will never derail, though.
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Old 09-06-2012, 04:50 PM   #20
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Sure, like the Rockefellers and Fords.

I'd like to be broke like any of them.

Ha
Nice examples, but they were in a class by themselves, the wealthiest people in the US, and they set up their money so it couldn't be spent by their descendants. Bill Gates and Warren Buffet have done something similar. How much money has lasted three generations when the descendants had free access to the whole thing?
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