10 Things The Rich Do That The Poor Don't - Why You Are Still Broke

Have you ever thought about how some people can become incredibly wealthy while others struggle to make ends meet? Does it make you wonder if there's some sort of secret formula to becoming rich that you're missing out on? Well, in this video I will share 10 things that rich people do that poor people don't, which often makes the difference between financial success and financial distress. Number one, the rich believe in the law of income. The rich believe that they will be paid in direct proportion to the value that they deliver to the marketplace. In other words, if they are integral in forming a product that nearly everyone in the world wants or needs, then they should be compensated accordingly. Rich individuals understand that output is the only metric that counts since we live in a results-driven world. Poor people, on the other hand, believe that they should be paid based on the amount of time they put into an activity. While hard work is a factor in success, increased input does not always equate to more output, and this can be a sign of inefficiency when value-added results are not consistently produced. Therefore, poor people often miss the mark by solely focusing on inputs instead of outputs. Number two, the rich are voracious readers. Wealthy individuals live by the saying, the more you learn, the more you earn, and this is often accomplished through reading. Warren Buffett, arguably the world's greatest investor, was once asked about the key to success. He responded by pointing to a stack of books and answering, read 500 pages like this every day. That's how knowledge works. It builds up like compound interest. All of you can do it. I guarantee not many of you will do it. Warren Buffett is not alone in the club of enthusiastic book readers. Mark Cuban, owner of the Dallas Mavericks, dedicates three hours a day to reading. Bill Gates, the founder of Microsoft, reads 50 books a year, nearly a book a week, and Elon Musk, the creator of Tesla, is an avid reader that claims he learned to build rockets by reading textbooks. As for the poor, only 1 in 50 admit to employing self-improvement reading habits on a daily basis, and as a result, lack the knowledge to make decisions that will lead them to financial prosperity. Number three, the rich focus on opportunities, not obstacles. There was once a shoe salesman that found himself in a faraway country trying to sell shoes to the natives. The only problem was no one there wore shoes, and the sale was often quite difficult. The salesman soon gave up in frustration and decided to leave the area. On his way out, he met another shoe salesman. Don't bother entering this town, said the first salesman. These people don't even wear shoes. The eyes of the second salesman grew wide. No one has shoes. Then I could sell a pair to everyone in town. How fortunate we are to stumble upon an untapped market. You see, it's all a matter of perspective. The poor often see obstacles and quickly give up while the rich see opportunities and enter arenas that many wouldn't dream of. Number four, the rich associate with positive, successful people. It's been said that you are the average of the five people you spend the most time with, and rich people know that your social circle drives your success. This is why individuals spend time with others who enjoy talking about success, opportunities, and the positive things in life. By doing so, these successful individuals have a higher chance of optimizing their view As often seen with poor people, they make little effort to integrate themselves with people who will allow them to develop into more successful versions of themselves. Instead, they would rather be brought down by bad influences, ultimately squandering any chances they would have of improving their financial situation. Number five, the rich are willing to promote themselves and their value. Most rich people have a skill or idea that has brought them their wealth. As a result, they are not afraid to share their strengths with others. The sharing of their best attributes is often in an effort to disseminate knowledge and help others grow. As for the poor, most are not extraordinary in any one thing, and unfortunately being average is a precursor to financial mediocrity. Furthermore, the skills these individuals do have are rarely on display as lower tier income earners tend to lack the understanding of how important it is to sell yourself when trying to get ahead. Number six, the rich grow bigger than their problems. The poor see problems as obstacles rather than opportunities. Instead of trying to figure out how to overcome hard times, these individuals succumb to the challenge and return to their status quo. Conversely, rich people thrive on new challenges. Rich people understand that there is value in creating solutions to problems, which is the basis of many financial success stories. Number seven, the rich think both, the poor think either or. Economists came up with the term opportunity cost long ago. Put simply, this means that if you choose one thing, you are ultimately forgoing something else. In other words, if I have five dollars and I buy a five dollar ice cream cone, then I am giving up that pack of gum that I wanted as well. This is how poor people think too. They have a set amount of money and they think that they can spend it on either one thing or another, but not both. It sounds logical, doesn't it? But the rich focus on how they can get both. Following along the same lines as the example above, let's give a rich person five dollars. They too want both ice cream and a five dollar pack of gum. But instead of thinking either or, they decide to go for both. To do this, the rich mindset would not buy the ice cream or the gum initially, but might instead buy a 24 pack of water for five dollars. They walk down the road a ways, sell each bottle of water to pass their buyers for 50 cents, and earn a total of 12 dollars. Now they can enjoy their ice cream, gum, and still have two dollars left to spare. The rich have a both mentality, not either or. Number eight. The rich focus on net worth, not working income. Poor people often talk in terms of hourly pay, whereas wealthy people know that an hourly income is not nearly as important as someone's net worth. One can earn quite a lot of money per hour, but if they don't know how to keep it, then they will still be broke in the end. The rich person knows that a large net worth will net many opportunities and will create more wealth in the future. Number nine. The rich are dollar smart. There is a saying that goes, penny smart, dollar stupid, and this phrase is practiced by many poor people. This phrase basically means that some individuals are very particular about how they spend small amounts of money, like when buying a cup of coffee, but do not make wise decisions with larger sums of cash, like investing in self-improvement and education. Rich individuals leverage both strategies by making disciplined penny decisions while investing the large amounts of funds into conferences, paid mentorship, and other activities that will foster continual improvement and financial success. Number 10. The rich network and volunteer regularly. The rich understand the value in building connections. Whether it is making friends or finding potential clients, meeting new people only has upside, and this is often facilitated through community involvement activities. Almost three quarters of wealthy people network and volunteer a minimum of five hours a month. Among those struggling financially, only one in ten does this, causing them to miss out on new connections and as importantly, many new opportunities for financial prosperity. In conclusion, these ten things are just some of the factors that set the rich and the poor apart, and by employing the rich person habits previously outlined, you will be much better equipped to become wealthy yourself. Thanks for watching. If you enjoyed this video, please hit the like button and subscribe for more informative content.