3 More Differences Between the Rich and Middle Class
Got lots of great feedback and opinions after last week’s article 5 Differences Between the Rich and Middle Class, so I decided to keep the ball rolling.
Here are 3 more differences …
1. The Middle Class Work to Earn, the Rich Work to Learn
I know someone who always seems to be changing jobs when he gets an offer for more money, which is normal middle class mentality. But that’s chasing money.
The rich, on the other hand, understand that working isn’t about the money. It’s more about learning and developing the skills and traits you need to become wealthy.
Here’s the advice I give to aspiring entrepreneurs …
If you’re interested in starting your own business in a specific niche, why not go to work for a company in that arena, so you can learn the ins and outs of that particular business?
Pay doesn’t matter.
In fact, if you’re finding it tough landing a position, you might want to consider working for free.
You can tell the owner something like … “I’ll work for free for 45 days and show you how valuable I can be to your company, and if you like what I’m doing, we can discuss compensation at the end of this initial period.”
That shows some spunk. And makes you pretty darn irresistible to a potential employer (especially to small/medium size businesses).
If you do well, don’t be surprised if this puts you on the partnership track … or on the road to some kind of equity share or stake in the business.
And if it doesn’t, no worries, you’ll at least have gained some vital ‘insider knowledge’ so you can go out and do it in your own.
2. The Rich Have Multiple Sources of Income, the Middle Class Has Only One or Two
I was listening to a Podcast with super-entrepreneur David Osborn, who has over 120 passive income streams!
He has interests in various different businesses and ventures, including: A real estate franchise (with over a billion dollars in volume) … an insurance agency … construction company … consulting firm … rehab company … various different commercial and residential property holdings … development projects … and on, and on, and on.
The dude is prolific.
And one of the most “conscious creators” I’ve ever heard about.
What do I mean by that? Everywhere he goes, he’s never without his hardback journal.
In it, he keeps a list of his most important goals in ALL categories, including financial, which he reviews on a daily basis.
Anytime he hears a great quote … or gets an aha … or a valuable tip … or whatever he might find helpful or insightful, he jots it down in his journal.
That’s what I mean by being a conscious creator.
A constant, never-ending focus on what’s most important and the things that are necessary to continually make progress … is a can’t-miss formula that virtually guarantees success!
3. The Middle Class Have “Things”, the Rich Have Money
If you’re more focused on having the fancy car, or the big house, or the shiny new boat than on having a giant bank account, you’re practicing a middle class mindset.
Here are some more findings that you might find surprising from The Millionaire Next Door:
- Ninety percent of millionaires live in homes valued below $1 million; 28.3% live in homes valued at $300,000 or less.
- On average, millionaires have a mortgage that is less than one-third of the value of their homes.
- 67,000 millionaires live in mobile homes!
- The majority of millionaires own their cars, rather than lease. Approximately a quarter have a current year model, but another quarter drive a car that is 4 years old or older.
- More than a third tend to buy used vehicles.
- The most popular car-maker among millionaires? Ford and Toyota.
I’m definitely not railing against the big house or fancy car.
If you really want that new BMW 700 series … I say go for it. But HOW you go for it is what makes the big difference.
Rather than finance it and make a big fat payment to support the vehicle from your earned income, why not FIRST buy an ‘appreciating’ asset (like a duplex) that spins off the cash flow to cover that car payment?
The main point I’m making? Your ASSETS should be paying for your toys and fancy lifestyle … not your earned income!
And if that’s not happening right now, priority one should be building up your asset base so you can comfortably afford all the fancy stuff.
(c) IR Press, Inc.