The Main Differences that Separate the Rich and Poor (Things Rich People Do)

The Main Differences that Separate the Rich and Poor: (Things Rich People Do)

Links and videos mentioned in this video:

Dan lok (How to Get Rich) - https://www.youtube.com/watch?v=d1Js_Rh-6SM

Dan (What Separates the Rich and Poor) - https://www.youtube.com/watch?v=RrUfXZPaxGE

Ryan Scribner's Youtube channel: https://www.youtube.com/channel/UC3mjMoJuFnjYRBLon_6njbQ
Multiple factors contribute to an individual becoming poor or rich or their span of their lifetime. Throughout the course of my life I have studied what separates the wealthy from the poor and middle class. These are the things I have observed over the 15 years of my life.

I’m only sharing my personal views as to what factors separate the rich the poor so that we can learn of these differences and learn how to improve our personal lives.

1. Written Goals – Wealthy individuals make time to write out their goals and take them seriously. They plan and strategize. By doing this process over and over again they develop a clear sense of purpose and clarity. They know what they want and go after it. They develop discipline and eventually achieve their goals.

The poor often never take time to write goals, and if they do they rarely take them seriously. This is the majority of people. Ask people if they set goals on a regular basis. IThe poor are usually unclear of what they want and they rarely think of their future or where there life is headed.

2. How they spend their money and use debt - The rich use debt to purchase assets or to help create assets. They use other people’s money to acquire real estate investments, or to aid them in launching a new business.

The poor and middle class use debt to buy “Stuff” Nice cars, bigger homes, toys, vacations, etc. Once they have too much stuff they end up using a company like Public storage to store it all which is another monthly expense. The poor accumulate liabilities which often raises their monthly expenses. These expenses reduce ends up reducing their monthly cash flow. Robert Kiyosaki talks about this in his book “Rich Dad Poor Dad”

3. Leverage
-Other people’s time -
-Other people’s money
-Other people’s knowledge

4. Money Management - The rich budget and keep a close eye on their finances. They run their finances like a business and make sure their money has a specific purpose.

The poor often do not budget at all. 2/3 of the population in the US is estimated to not have a budget. By not tracking their expenses they end up spending their money foolishly and going into debt. When they do have extra money they often use it to buy more stuff. They chase status rather than pursing wealth building habits with their money.

5. How they make their money – If you study the richest people in the world most of them achieved their wealth through business ownership and/or investing. Look no further than the forbes 400 richest to find proof of this.
The rich invent, create, and sell new products and services through their business.

The poor and middle class generally trade time for money. With their time being limited to only 24 hours per day by choosing to make their living as an employee they automatically limit their income potential.

6. Multiple streams of income – This one is fairly obvious, but if you study wealthy individuals they usually have multiple income streams. Wages, business income, rental income, dividend income, capital gain income etc.

Unfortunately the poor and middle class usually only have one source of income and it’s from their job.
7. Time and interests - The rich value their time. They realize time is their most valuable asset. They use their time to be as productive as possible. They use their time to achieve financial freedom, by investing time working on passive income building activities.

The poor and middle class usually do not use their time as productively. They watch TV, play games, etc. It’s not a bad thing to have fun and relax. We all need to take time to relax, but rarely do the poor and middle class use their free time to develop higher income producing skills.

What I have found in the real world time and time again is that most people do not want to work more when they get off work. They do not want to try to develop new skills, and they are not interested in investing or finance.

The simple truth is that people have other interests and building wealth is usually not one of them.

Always remember time is your most valuable asset. It’s a gift. I encourage all of you to use your time wisely to help others, and to build wealth for family and future generations.
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