One of my goal in life is to be able to think like rich people. I’m nowhere near being rich. But if I continue to think like rich people, I believe sooner or later I’ll be one too. So how do rich people think? Recently I found an article from Yahoo News about 21 Ways Rich People Think Differently from the average people. The ones that stick in my mind because it’s pretty much something that I’m struggling to change are:
Average people live beyond their means, rich people pay themselves first and live below theirs.
Average people put their money in present; lavish designer stuffs, million dollar home. Rich people put their money for the future; retirement fund, college fund, life insurance, etc. Yes you do need life insurance and disability insurance. God forbid anything happen to me or my husband, my kids will be taken care of. You can easily get instant quotes from leading life insurance companies by visiting sites like Mozdex.com.
Sometimes I do wonder how the majority of my friends could afford to live in a $300K home (here in Midwest, it’s like a mansion). Sometimes I do wonder if my husband and I are both extremely underpaid. After retirement fund, 529 for two kids, 30 year term life insurance , disability insurance, and all the household expenses, I don’t think we could comfortably afford to buy a mansion. My husband always yells at me every time I bring this up, “Why do you care so much what other people have? Who cares about keeping up with the Joneses. Just think about ourselves, what we need, and what we want in life”. As much as I agree with him, I have to admit sometimes it’s easier to say than done. Do I really need 3000 sq ft home? Probably not. Warren Buffett still lives in the house he purchased about a half century ago. When asked why he never moved, he said the house has everything he needs. As far as how my friends spend their money, it’s really none of my business. I need to focus on what makes me and my family happy.
Average people have a lottery mentality. Rich people have an action mentality.
Average people are waiting for promotion from their boss, or money from God. Rich people find a way to make money. Yes I do believe God will take care of us, but I also believe He wants us to make an effort and be smart about our earning.
Average people earn money doing things they don’t love. Rich people follow their passion.
I do love what I do right now. I don’t work for money, I work for enjoyment. If someday my work becomes a burden, I know I will find a way to “fix” it. I don’t mind sometimes working extra hours at work during busy season, and try to find times to blog, because I enjoy doing it. Like a wise man says, “Do what you enjoy the most and you never work a day in your life”.
Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge.
Not long ago, I was thinking about my long term career goal. Yes I do enjoy my job, but do I want to be an accountant for the rest of my life? Probably not. Problem is most jobs that are a level ahead of mine require CPA or MBA. I asked my husband whether I should go back to school or not. He told instead of going back to school and be in debt of student loan, I should learn new skill. So my goal for this year and next year is to learn SQL. I also asked for new responsibility and projects from my boss. Whether or not I get promoted in the company I currently work, I don’t know. But at least I’m working on new skills for my own sake.
I still don’t know what I want to do if I’m rich. My husband’s dream is to travel the world and work only because he wants to, not because he has to. I second the last part but not quite there yet on the first one. Travelling with my husband is honestly stressing me out. Maybe that’s what I need to do first. I need to figure out my dream and use it as motivation to think like the rich, so I can afford to living in my dream.
Tags: how to be wealthy , money management
