We’ve all heard the saying, “An ounce of prevention is worth a pound of cure.” But what is the correct mindset to adopt? Rich or poor, we need to consider our attitude to wealth and what it means to us. In this article, we’ll look at Arrogance, Fear, Assets, and Cynicism, to name a few. While these traits are not necessarily wrong, they’re the opposite of a rich mindset.
Arrogance
A big barrier to wealth is arrogance, which is the attitude that “what I don’t know doesn’t matter.” It is a closed mind, and an unwillingness to learn new things or change one’s opinion. Arrogance can be present in people who are highly intelligent and knowledgeable, and can cause them to make bad decisions. Many people make the mistake of buying investments or real estate before learning as much as they can about these types of investments.
In Rich Dad Poor Father, we see that most people are not wealthy because of their financial resources, but because they are afraid to lose them. This fear is exacerbated by the fact that most people feel a lack of money and don’t change their lives despite increasing their income. In contrast, the rich feel an even larger fear of losing their money than those who have little to begin with. As a result, most people continue to work in jobs that they do not like for low wages.
Fear
The rich mindset comes from knowing how to spend money wisely and how to build multiple streams of income. It’s easy to fall victim to the “poor dad” mentality, which traps you into a job you hate. By contrast, the rich mindset is built on the knowledge that wealth is built through experience-based learning and multiple sources of income. This article explains the differences between the two mindsets. Read on to learn more.
Robert Kiyosaki is an entrepreneur at heart, and the father of his best friend, has the same attitude about money as he does. He says that “the rich mindset starts at home, and it begins with the family.” His best friend’s father never finished high school, but left his son a financial empire and a comfortable retirement. By understanding the role that your mindset plays in creating your financial future, you can begin to develop the habits that will help you achieve the same success.
Assets
The wealthiest people are not born with the “rich-person gene,” but they know how to use their money wisely and unconventionally. Their mindset is also different than that of the average Joe. The first step to becoming financially free is to develop a positive mindset. This requires a good, honest look at your life. Here are some tips to help you develop this mindset. Then, apply them to your own life and see if you can’t duplicate their success.
Real estate and other income-producing real estate are assets. Other assets include stocks, royalty streams from intellectual property, and other businesses. Real estate is a popular asset class, and continues to balance the volatility of stocks. However, physical assets tend to scare away small investors, as they are expensive and can be difficult to liquidate. Rather than buying property, consider renting it out and generating a cash flow from it.
Cynicism
According to Rich Dad, the rich aren’t the least bit afraid of taxes. The rich don’t even let the government tax them. That’s because their only asset is their time. So, they don’t waste it wallowing in a pile of debt or trying to build their dream home. In fact, a rich man never lets the government tax him. And he never squanders his time, despite the fact that he started working at age nine.
The author claims that he isn’t a poor guy, but has two dads: his real father and his best friend. Both of them are rich, but the difference is that the rich don’t need a high income to be rich. The rich keep their money and have assets, while the poor have liabilities. The key to wealth is to understand this difference and apply it to your life.
