The rich really may be different and perhaps the rest of us can learn something from them, according to Steve Siebold, author of How Rich People Think. Points made in his book are listed in the Business Insider.
Following are a few excerpts from the article by Mandi Woodruff that may be of interest to investors:
Average people would rather be entertained than educated. Rich people would rather be educated than entertained. Although 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 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.
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 always be able to earn more.”
BetterInvesting is a national nonprofit organization that has been empowering individual investors since 1951. Founded in Detroit, the association (formerly known as National Association of Investors Corporation) was borne out of the conviction that anyone can become a successful long-term investor by following commonsense investing practices. BetterInvesting has helped more than 5 million people become better, more informed investors by providing webinars, in-person events, easy-to-use online tools for analyzing stocks and mutual funds, a monthly magazine and a community of volunteers and like-minded investors. For more information about BetterInvesting, visit its website at www.betterinvesting.org or call toll free (877) 275-6242.
Want more BetterInvesting? Sign up for our free weekly investing newsletter at www.betterinvesting.org/weekly.