15 ways rich people think differently

[Tink]

LOL cynic - love it
Disagree McLovin, that belongs in the drunk thread.

Merry Christmas.

 

[tech/a]

I would ask you all "potential rich people" to consider how resilient rich people cope with poverty, and rise out of that or recover from it..

It is easy to be rich.

This is becoming a Tony Robbins thread.

Think outside the box.

gg

Merry Xmas.

Many wealthy have been to poverty.
Infact at times it's a fine line between wealth
And poverty.

Mate of mine had a subdivision which if sold represented $10 mill profit.
He was well sought after on the " Financial circuit "
Sales stalled and his cash flow couldn't match his loan repayments.
After 18 mths bankruptcy.
Now is Mark ---- who ----- name changed as some here may know the guy.

Had it come off he would e out there as Mr mega successful.
But timing killed the property star!

But I'm sure he'll be back.

 

[Tyler Durden]

When I read your posts Tyler, I get the sense that our ideas on wealth accumulation/generation are very similar.

Item 15 is the only item with which I find myself in significant disagreement, so I'd be very interested to hear your opinion on it.

The only part about 15 I disagree with is that average people try to live frugally. I think it's quite the opposite - average people tend to live beyond their means whilst rich people try to save every cent possible. What do you think?

I remember a friend telling me his wife had just started work at an investment bank, and at the end of the week they all went out for drinks to welcome her. When the bill came, they all walked away, leaving her to pay it.

 

[prawn_86]

I remember a friend telling me his wife had just started work at an investment bank, and at the end of the week they all went out for drinks to welcome her. When the bill came, they all walked away, leaving her to pay it.

Depends on the situation. I work in finance and there are certain times when people earning a lot less are expected to buy the drinks. Think of it as an initiation of sorts

 

[cynic]

The only part about 15 I disagree with is that average people try to live frugally. I think it's quite the opposite - average people tend to live beyond their means whilst rich people try to save every cent possible. What do you think?

I remember a friend telling me his wife had just started work at an investment bank, and at the end of the week they all went out for drinks to welcome her. When the bill came, they all walked away, leaving her to pay it.

Yes. My thoughts are quite similar. I've often heard people claim that they would start saving money if only they earnt a higher wage. The reality was that despite numerous pay rises over the years, these same people continued to try and "live the champagne lifestyle on the beer budget". Their spending always inflated to match (and at times exceed) any increase in their earnings. It was only when circumstances arose leaving no viable alternative (credit limit exceeded, job loss etc.) that frugality was practised by these individuals.

On the other hand, I would agree that those whom become compulsive (rather than passionate) about saving money generally miss the point of balance between living frugally and living miserly. Looking after the pennies may result in the pounds looking after themselves, but one must take care not to become penny wise and pound foolish.

I would agree that availing oneself of opportunities to maximise the returns on one's resources (including available time and labour) is highly recommended, however, the wealthiest people I've met, were more entrepreneurial and seemed largely disinterested in seeking pay rises/promotions. I believe that they recognised that their efforts could achieve greater returns elsewhere.

@Tech/a, firstly thanks for noting your agreeance with 15. Given your indisputable accomplishments in matters pertaining to wealth and its acquisition, I'd love to know your thoughts (but please make sure you type slowly for me as I'm still very much a "wannabe")

 

[McLovin]

The only part about 15 I disagree with is that average people try to live frugally. I think it's quite the opposite - average people tend to live beyond their means whilst rich people try to save every cent possible. What do you think?

I disagree. Some do, some don't. My cousin is a great case in point. He does pretty well for himself, he grew up poor. He has a successful business but he spends all he makes. Last count he had a helicopter and two private jets. He also has one client. If they go elsewhere he's pretty much screwed. He's always lived a seat of the pants kind of lifestyle. He'll either die very rich or penniless. That's why I think these generalisations are silly.

 

[pavilion103]

Number 1 that selfishness is a virtue is rubbish. Generosity is one if the most attractive and respected qualities anyone can possess.

I agree though that in order to have the impact that we can truly have we need to put ourself in the position to do so. But I have zero respect for someone who leaves a stack of money to some organization in their will, giving little their whole life. It counts for absolutely zero. Generosity is an attitude and habit at all stages of life. No need to give above your means though.

I want character AND money but I'd never want money without character.


The others I really like. Very good article IMO.

 

[Julia]

Number 1 that selfishness is a virtue is rubbish. Generosity is one if the most attractive and respected qualities anyone can possess.

I agree though that in order to have the impact that we can truly have we need to put ourself in the position to do so. But I have zero respect for someone who leaves a stack of money to some organization in their will, giving little their whole life. It counts for absolutely zero. Generosity is an attitude and habit at all stages of life. No need to give above your means though.

I want character AND money but I'd never want money without character.

Good post, pavilion. I agree, and not just financial generosity, but generosity of spirit, something that seems to be sadly diminished these days.

 

[Tyler Durden]

I disagree. Some do, some don't. My cousin is a great case in point. He does pretty well for himself, he grew up poor. He has a successful business but he spends all he makes. Last count he had a helicopter and two private jets. He also has one client. If they go elsewhere he's pretty much screwed. He's always lived a seat of the pants kind of lifestyle. He'll either die very rich or penniless. That's why I think these generalisations are silly.

I think those types of examples are exceptions, but of course these are generalisations, which apply to a lot of cases, just not the exception you've described.

 

[McLovin]

I think those types of examples are exceptions, but of course these are generalisations, which apply to a lot of cases, just not the exception you've described.

I can give you plenty more examples of the same. Almost all my friends are from "rich" families,, not through a conscious decision on my part just through where I grew up, I guess you could add my own family to that descriptor. Some of them spend big on flashy bits and pieces others drive bottom of the range Japanese cars. It depends on the person. My Mum drives a Toyota Corola, because she doesn't care about cars or status symbols. My aunt, her sister, was the opposite, always had a couple of Range Rovers in the driveway. When I got my license my parents gave my an old Barina that had been a company car, my cousins (different cousins to the one mentioned above) got BMW 318i's.

Luck plays a much larger part in becoming rich than the average person thinks. If I were graduating from uni now and going into finance there's no way I would have made the money I did through the last decade.

Anyway, that's my take on these sort of lists.

 

[notting]

The game never stops.

Some will go from high to low.
Others from low to high.
Then around and around again.

With every step
A generous spirit will be met
With golden stones
That pave the way.

In that investment
There is a sure thing.
May I ever know
100% trust in that.

I have seen the light!!!
Hail Mary, Praise the Lord Jesus. Alelulia.
Oh look, it's way past time for my medication.
Will someone please turn those f√ ¢k ¡Δg Christmas carols off!

 

[banco]

Depends on the situation. I work in finance and there are certain times when people earning a lot less are expected to buy the drinks. Think of it as an initiation of sorts

Think I saw this on the sopranos when Christopher became a made man.

http://www.youtube.com/watch?v=avSfq9_mEis

 

[Julia]

My aunt, her sister, was the opposite, always had a couple of Range Rovers in the driveway.

Why did she need 'a couple' of Range Rovers?
Sounds like pure ostentation to me.

People who need what they believe are status symbols or who constantly namedrop about how rich they are, and what wealthy backgrounds they have, come across to me as a bit personally/emotionally insecure.
All the really wealthy people (as distinct from the nouveau riche) feel no need to flaunt it.

 

[McLovin]

Why did she need 'a couple' of Range Rovers?
Sounds like pure ostentation to me.

His and hers.

I don't lose sleep over how someone spends their money, I was just highlighting that it's a myth that the rich are frugal. And that's not just the nouveau riche.

 

[Bill M]

I read some where that wealthy people always know how much they are worth (asset wise) and how much income they get. Poor people don't really know.

 

[cynic]

In nature there are some creatures that artificially inflate their appearance as a defensive mechanism , and then there are others that simply don't need to!

On a day back in the '80's a neighbour called on my grandparents for assistance in reading some contractual documents.He was an interesting character, he always got around in a pair of grubby old shorts and tank top. He often went fishing in his old wooden boat with outboard motor. Between the fish he caught and the mangoes produced by his tree, he was able to significantly reduce his food bill. He had a gentle disposition and was generous with his mangoes and his boat. At times he lent his boat to the grandchildren of neighbours (including my siblings and cousins). Anyway, on that particular day that he visited with those documents in hand, two things (previously unknown to my grandparents) became apparent. The first was that he was illiterate. The second was that he was a multi-millionaire!


Whilst engaged on a temp assignment at one of the telco's last decade, I worked in an identical role with a number of others. We were being paid $17/hr gross and as it was a casual rate there were no leave entitlements whatsoever. It was hardly an opulent wage, but one that I was appreciative of nonetheless. When one of my fellow temps received some news regarding the sale of an item of recently inherited real estate, I was somewhat surprised. He and his brother had effectively inherited 1.5 Million GBP. When I pointed out to him that his share (i.e. 750K GBP) made him the equivalent of a millionaire in AUD, his reaction made it apparent that he'd already been wealthy before this inheritance. He like myself, were commuting to work via public transport.

It is not a myth! They do exist! It's just that they're more interested in getting on with their lives than allowing themselves to be held to ransom by public opinion. They're not normally noticed because they're not interested in flaunting it!

 

[qldfrog]

Quite a lot of truth still in these points, I especially agree on the taking the chance: you need luck but you also need to take it: you start a business, and try again if it fails; you keep an open mind, learn to listen and listen to learn;

 

[Gringotts Bank]

I can give you plenty more examples of the same. Almost all my friends are from "rich" families,, not through a conscious decision on my part just through where I grew up, I guess you could add my own family to that descriptor. Some of them spend big on flashy bits and pieces others drive bottom of the range Japanese cars. It depends on the person. My Mum drives a Toyota Corola, because she doesn't care about cars or status symbols. My aunt, her sister, was the opposite, always had a couple of Range Rovers in the driveway. When I got my license my parents gave my an old Barina that had been a company car, my cousins (different cousins to the one mentioned above) got BMW 318i's.

Luck plays a much larger part in becoming rich than the average person thinks. If I were graduating from uni now and going into finance there's no way I would have made the money I did through the last decade.

Anyway, that's my take on these sort of lists.

Same view here.

Luck has to be investigated. What is it? How does it function? Does luck have rules? I'll leave it there. But you know what I mean.

The summer intern wrote the list... exactly right.

 

[Gringotts Bank]

While it's true that rich people aim high, that doesn't mean that if YOU aim high, that YOU will become rich.

While it's true that rich people dream of the future, that doesn't mean that if YOU dream of the future, that YOU will become rich.

While it's true that rich people use other people's money wisely, that doesn't mean that if YOU use other people's money wisely that YOU will become rich.

And so on...

All the points on the list are correct statements, or close to it.

All the points made give absolutely NO CLUES about how to become rich.

The list is completely useless because it's an observation of effect, not cause. The cause needs to be investigated. And the cause is hidden from view, because it always is. If it was as simple as following a list, don't you think everyone would have done it by now?

There's similarities in trading advice one reads here. "Just do this!!" "Know your R:R!!!" say the experts, as if doing those things makes any difference. The cause is always hidden, and people act as if the effect is appropriate advice to follow. If the game of trading was like fixing a car, don't you think everyone would be rich by now? You'd learn how to do it and you'd just damn well do it.

In social life, people make the same cause-effect error, and it's very obvious in young people. Young guys see someone having success with women, and they immediately start to mirror the successful person's *effects*. "If I dress the way he does, if I talk like he does, if I walk the way he does, if I join the football team that he is in, then maybe i will have the same success". They do this because they can't see the cause. Then one day the successful guy will suddenly change the way he dresses, and maybe even leaves the football team - but lo and behold, he is still successful with women, while his followers are TOTALLY LOST because they mistook cause for effect. So whom are YOU following like a sheep??? What will you do when he suddenly changes his approach?

Can you see the similarity with trying to mimic successful traders? You can't just do what they do and hope to be successful. It will not happen. Success is possible however, just not this way.

 

[burglar]

... Success is possible however, just not this way.

Walk this way, talk this way!!!