Rich People Think Differently

[Onward]

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.

[traineeinvestor]

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.

[Lazarus]

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.

[rescueme]

Quote:

Originally Posted by Lazarus 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.

[Col. Klink]

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

[FinanceDude]

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.......

[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.

[Jay_Gatsby]

Quote:

Originally Posted by FinanceDude 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.

[FinanceDude]

Quote:

Originally Posted by Grinch 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

[scrabbler1]

Quote:

Originally Posted by Col. Klink 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.

[bssc]

In addition to 12, I liked 11 which was popularized by Warren Buffett

Quote:

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

[Milton]

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.

[jerryo]

I found the whole article annoying!

[chris2008]

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.

[brewer12345]

Quote:

Originally Posted by chris2008 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.

[MichaelB]

Quote:

Originally Posted by brewer12345 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.

[haha]

Quote:

Originally Posted by MichaelB +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

[Jay_Gatsby]

Quote:

Originally Posted by MichaelB +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.

[ziggy29]

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.

[MichaelB]

Quote:

Originally Posted by haha 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?