Money – Advice From Wealthy Men – Part 2

Part 1 HERE

There’s some great insight in this article.  I’d definitely buy the book and read it.

For this Money post, I’d like to solicit my small readership’s comments.  What of the above 21 ways resonated with you personally?  Which ones did you disagree with?  I think that this is a solid list, with some filler (naturally).  I will add my commentary to each person’s comment.

Come on lurkers, I know you’re out there.  Feel free to add an anecdote from your personal experience.  There’s zero reason I can’t become wealthy, and neither is there for you.  Let’s get our minds exercising and our directions improved.

http://www.rsvlts.com/2012/09/06/21-ways-rich-people-think-differently-than-average-people/

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~ by aneroidocean on 11/27/2012.

4 Responses to “Money – Advice From Wealthy Men – Part 2”

  1. Okay, don’t everyone respond at once. I’ll start this off with the two quotes that resonated the most with me:

    “Average people think selfishness is a vice. Rich people think selfishness is a virtue.”

    This is a little along the lines of the Red Pill philosophy. You really have to be selfish in life if you want to be successful. This doesn’t mean that you have to be mean, or go out of your way to bring others down, but you have to strive for what you want, even if it means ignoring others, cutting people out of your life, or getting what you need out of other people. It’s doing an even smaller subset of things you’d do in order to save your own life. Why wouldn’t you do a smaller subset of the extreme things to save your own life in order to make your life the way you want it?

    “Average people believe you have to DO something to get rich. Rich people believe you have to BE something to get rich.”

    I actually liked the subquote on the above better:

    “That’s why people like Donald Trump go from millionaire to nine billion dollars in debt and come back richer than ever,” he writes. “While the masses are fixated on the doing and the immediate results of their actions, the great ones are learning and growing from every experience, whether it’s a success or a failure, knowing their true reward is becoming a human success machine that eventually produces outstanding results.”

    I love that it points out that the masses are fixated on the immediate results of actions. They are instant-gratification oriented, whereas wealthy people are outcome independent in the sense that even a negative outcome is something they can learn from and apply towards their journey to success in whatever they put their minds to.

    “Average people focus on saving. Rich people focus on earning.”

    This can be confusing, so I’ve added the subquote as well:

    Siebold theorizes that the wealthy focus on what they’ll gain by taking risks, rather than how to save what they have. ”The masses are so focused on clipping coupons and living frugally they miss major opportunities,” he writes. ”Even in the midst of a cash flow crisis, the rich reject the nickle and dime thinking of the masses. They are the masters of focusing their mental energy where it belongs: on the big money.”

    Actually, I’d say that the masses are not necessarily focused on clipping coupons and living frugally, but they DO miss major opportunities out of fear of the risk involved. This is something I’ve found to be true amongst successful gamblers. They have the mental focus and acumen to realize that if they EDUCATE themselves and truly assess their wins and ESPECIALLY their losses, they will ultimately make big money. They realize that their most powerful tool is their own education coupled with self-control/assessment. These coupled minimize their risks and guarantee that they will come out of any losses better directed towards success.

    “Average people live beyond their means. Rich people live below theirs.”

    I think the subquote on this one is confusing this very powerful message. Average people live completely beyond their means. If you have debt, you are living beyond your means. If you don’t have any safety cushion, you are living beyond your means. Most people are living beyond their means. MANY people are living WELL beyond their means. Either situation just chains us to a job, to a constant struggle. People don’t take the time to truly analyze the areas of their finances and face facts. There is very little planning, and we are rewarded in society for having nice things, even if we can’t afford them. I can’t wait to get this area of my life locked down, as I’ve been able to live well below my means in the past and if I can do it now, when my income is low and my expenses are high in comparison, I know that I can continue to be just as frugal despite growing my income significantly.

    Wealth is simple, it’s creating more assets and minimizing your liabilities. That’s it!

    http://higherlife.ca/blog/assets-vs-liabilities-%E2%80%93-why-the-rich-get-richer-and-the-poor-get-poorer/

    Most millionaires drive a car worth less than $30,000 and they bought it USED! Can you say that about most of your friends with good jobs? I doubt it. Are they millionaires? I doubt it.

    I’d be happier getting around on a bicycle with some part of my income being passive than I would be working 9-5 (or worse like I am now) for someone else and owning a powerful sexy sports car that I’m making payments on (not really technically owning). This is why I bit the bullet when I had to and shed my sleeper sports car and recently sold my semi-classic car that was in not that great of shape.

    Do it. Make steps, increase your assets, decrease your liabilities.

    • I currently drive a non-descript commuter car that’s in good shape but well over a decade old. It’s about to break 100k miles, but it’ll run much, much longer and gets nearly double the fuel mileage and costs at LEAST four times less to maintain than my former sports car. I don’t miss my sports car one bit. I want one again, but I won’t until my assets can come closer to justifying it.

      A friend of mine drives basically the same car and is a great saver. I was inspired by him. He’s got nearly 6 figures sitting around that he doesn’t touch and instead works hard so that he can use that for a down payment on a place and have his normal income easily pay for his living expenses. The guy travels all the time in his little commuter car, acquiring gear on sale so that he can go backpacking and snowboarding. He has networked enough to have friends who own cabins in beautiful mountain resorts that he can use practically whenever he wants. He’s a smart guy. I need more like him to be my friends/advisers.

    • “Average people focus on saving. Rich people focus on earning.” – Running off what you said on this, I think average people are AFRAID of failing, and I think it may be mostly because when you don’t have much money & then you lose it all, it’s a lot harder to pick yourself back up from that. I know that for me this is a lot of my fear. Yes you can rebuild yourself again after a hard failure, but damn it’s painful. I’ve done it a few times in my life & it’s not something I want to risk going through again. So when I build myself back up again, as I have now, it’s really difficult to take that jump forward & risk starting at the bottom of the pit again.

      Also, I agree with living beyond our means. I’m admittedly horrible at this. I think this is probably the biggest area I need to work on. When I work overtime all the time & have extra cash there’s always some new toy or hobby I want; I need to put my money towards more promising investments, & try to lower my debt that has piled up in the last few years.

  2. I like: Average people think rich people are snobs. Rich people just want to surround themselves with like-minded people.

    I can see that. I’m definitely not wealthy, but even now I see that in my life. I’m more work oriented & not so much into just partying all the time anymore. I’ve actually found it’s hard to meet people who have anything valid to say. All I want is a few good friends where we can hang out, maybe have a couple drinks, & DISCUSS things. Now days no one can hold a conversation. It’s annoying. I’d rather not have friends rather than be around people who talk about such trivial things & gossip. B O R I N G! So I can definitely understand why rich people wouldn’t want to be around the average community who don’t even have motivation to work a little bit of overtime every now & then & who just sit around complaining about things all day. That would start to bring me down too lol.

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