Differences Between The Rich And The Poor

The 2 videos below tell us how the Rich and Poor do things differently. I personally feel that Rich and Poor is just a state of mind. Everyone has their own expectation of how much networth to be able to consider oneself being Rich. Therefore, my financial goal is just to to able to achieve financial freedom through multiple streams of income. With that said, there are stuff in the videos that I also believe that differentiate the Rich and the Poor even before I came across the videos. 

Highlights of the 7 Things That The Poor Do

#1 Consuming Vs Creating

This is a classic example. We can just take a look at the obscene income hollywood stars and movie studios are making for each blockbuster. Handphone manufacturers like Apple and Samsung are also making huge profits every year by releasing new handset models.

#2 The Poor Lose Time Consuming Media

Instead of spending time improving ourselves in terms of financial literacy, a lot of us like to spend our spare time watching videos and playing video/mobile games. This syndrome is very common in Singapore and we can see most people doing that while commuting. We seldom see commuters reading a book or newspaper nowadays. This is actually making the content producers rich!

#3 The Poor Spend A Lot of Time To Save A Few Dollars

The Poor spends time to make money while the Rich spends money to buy time. The Rich will focus their time doing stuff that make them rich. They would pay others to help them with stuff that doesn't add value or produce less wealth for them.

#6  Most People Have One Source Of Income

This is very true. Most people only have a fulltime job and doesn't have other sources of income that could help them to achieve financial freedom. They may set aside an amount of money for savings each month but the miserable interest earned would not be able to fight inflation in the long run. 

#7 Most Aim to Retire At 65

Sad to say, as life expectancy increases, retirement age has to increase too. People are finding it hard to retire early. In the past, retirement age was 55 years old. So what could people do after 55 as a lot of jobs would be replaced by robots and automation eventually? Collecting cardboards? Become entrepreneurs by selling tissue packets at hawker centres?

On to the Next Video: 8 Habits Rich People Have (That Most Of Us Don't)

#1 The Rich and Successful Build Morning Routines.

The Rich looks forward to each day while most of us drag ourselves to work basically. However, I am not quite sure how doing yoga in the morning would help in achieving success. Perhaps it refers to doing stuff that would energized and prepare you for the day ahead.

#2 They take Immediate Action

The Rich takes action and do not give excuses why not to do it. The Poor tend to procrastinate and give excuses.

#4 They kill time wasters

No netflix and chill? No cat videos? Done.

#5 They visualize their success

Visualize and experience in your mind the goals and results that you want to achieve.

#6 They step out of their Comfort Zone

Successful and Rich people do stuff that the average person is afraid to do. 

#8 They cut their Loss

Rich people are not afraid to lose money and they cut their losses. They let their winners run and cut losses short. The Poor are afraid to lose money and hang onto their losses, hoping things would turn around eventually.

Do you have the Rich or Poor's mentality? Hope you find the videos educational!