A new report from a research arm of congress says the rich are getting richer. The average household income for the nation’s top 1% nearly tripled from 1979 to 2007, while middle class incomes grew by less than 40%. How do you break into that top 1%? It starts with your mindset.
Do you think like a millionaire? Most people don’t and that’s what’s holding them back from life-long wealth. The differences in thinking between the middle class and the wealthy are extreme, and the underlying factor in how much money one is capable of earning. If you want to be rich, learn how rich people think, copy them, take action and get rich. Here are seven differences in thinking between the middle class and the rich to help you get started.
Use non-linear thinking to earn more money: Most of us are taught to trade hours for dollars, which is the reason the average person makes little money. The rich earn their fortunes tapping their creativity and coming up with new ideas that serve people and solve problems. It’s not how many hours you can work or the amount of midnight oil you can burn; it’s about training your mind to think about old problems in new ways.
Use logical and emotional thinking: The middle class blends emotional thinking in their decision making process, which clouds their judgment. The rich use left brain, logic-based, emotionless thinking to make decisions in regards to earning, investing and saving money. They use emotion to motivate themselves to take action. Both forms of thinking have value. The secret is to know when to use which, and avoid blending the two.
See money as abundant and infinite: Money is created through ideas that solve problems, and since ideas are infinite, the amount of money you can earn is infinite. The masses see a world in recession filled with seemingly unsolvable problems. The rich see these new, complex problems as the opportunity of a lifetime to become even wealthier by solving them. The more numerous and complex problems society faces, the more opportunity all of us have to become rich.
See money as freedom: The middle class scorns the rich for flaunting their money and falsely assumes they acquire it for status. Status makes people feel important, and while everyone enjoys it, the rich build fortunes primarily so they can live life on their own terms. Money provides the freedom to do what you want, when you want, with whom you want, for as long as you want, while never having to answer to anyone unless you choose to.
Expect to be rich: The masses have a lottery mentality and have been brainwashed to believe the only chance they have to get rich is by picking the right numbers or playing slot machines. The rich expect to earn more money every year and aren’t surprised as millions of dollars flood their bank accounts. The rich have trained themselves to expect big things to happen, and as a result they are bold, aggressive and fearless in their pursuit of wealth.
Vaccinate yourself from Either/Or Syndrome: Most us of have been told we can’t have it all, and we must choose between having a balanced life and being rich. The rich know you can have whatever you want, and through leverage you can earn more while working less. Creative problem solving is the root of all great fortunes, and one idea that solves a small problem for a lot of people or a large problem for a small group of people can yield millions. Ideas can be incubated any time day or night, anywhere in the world. They don’t always require an excessive amount of time, but rather a persistent and unrelenting focus.
Self-Education is the secret: Formal education will make you a living, but self-education will make you a fortune. The rich are obsessed with learning and personal development. They know their mind is the hub of their financial empire, and while the masses seek entertainment, the wealthy are reading, listening to audio programs, attending seminars, and networking with powerful people who can help raise their level of awareness.
If you follow the beliefs, philosophies and strategies of the rich and take action, you have a legitimate shot at becoming a millionaire and breaking into the one percent of income earners. The secret is not in the mechanics of money, but in the level of thinking that generates it. Once you learn to embrace this, your earning potential is limitless.
Steve Siebold is author of the book How Rich People Think (download five free chapters of the book and get more information), which compares 100 thoughts and beliefs about money between rich people and the middle class. Siebold is one of the world’s most noted experts in the field of mental toughness training. His mental toughness clientele includes world-class athletes, Fortune 500 companies, and entrepreneurs.