What separates the middle class from the rich? By all accounts they have lots in common.
Hefty paychecks, education, big homes. But there’s something different about the rich. How are they able to bypass the middle class, and create enormous amounts of wealth? Why does it seem like they are working less hard than the rest of us?
Well, it turns out that there are subtle differences in beliefs that keep the rich getting richer and the middle class in the financial slow lane.
*These following beliefs are drawn from Steve Siebold’s book How Rich People Think. The commentary is my own.
Rich vs middle class
1. The Middle Class thinks hard work creates wealth. The Upper Class thinks leverage creates wealth.
We’ve always been taught that working hard at school or work is the keys to financial success. Sometimes to the point that we think it’s wrong to ask for help. How many days have you worked so hard that you forgot to eat or sleep, just to say that you did it on your own? That you’ve really “worked hard”, and that you got the under-eye bags to prove it?
Let’s stop for a second…
The people who are doing really well, both professionally and personally, seem relaxed and well-balanced.
In fact, they’re not constantly bragging about how hard they’ve worked, how much sleep they’ve lost, or how many meals they’ve missed. Instead they’re talking about the latest books they’ve read, or the trips they’ve taken.
Leveraging for wealth
Are these people just good at everything? Are they geniuses?
I’m pretty sure these people aren’t geniuses. But what I have noticed is that they are really good at creating assets that they can later leverage. They don’t let their own lack stop them. They build the right relationships and then build on those relationships to make money.
And there’s nothing wrong with this.
It’s just that we as a society have been conditioned to believe that leveraging our contacts (who we know), our credibility (our past triumphs), or our money, equals cheating. The truth is, the more you’re able to use leverage, the bigger your impact will be. The bigger your impact, the easier it is to create wealth.
2. The Middle Class believes building wealth is a solitary effort. The Upper Class believes building wealth is a team effort.
Lets all repeat this together: Wealth is not a solitary effort. This one concept can be so hard to swallow! For so long, the idea of success has been synonymous with independence and isolation.
working with others
While those aspects of success are real, you have to embrace the fact that no one can do everything by themselves, no matter how hard you try. Building wealth can take a considerable amount of time, skill, and energy; and no one person can handle it all on their own.
Instead, leverage other people’s talents to bring your own dreams to fruition.
The best way to begin following this mindset is to start by taking stock of your own personal and financial goals.
What will it take there? What skills do you have now, and how can you work with others to fill the gaps?
Don’t be afraid to add others to your team!
3. The Middle Class believes the more money you earn, the more stress you experience. The Upper Class believes the more money you earn, the less stress you experience
This last point probably reminds you a lot of the 90s hit “Mo Money, Mo Problems” (it’s a classic! 🙂 )
It’s because most people think about money in linear terms: that in order to earn more money, you have to put in more stressful hours at work…
None of that sounds attractive, and it’s probably why most people give up on the idea of ever getting rich.
Money and work are not linear
The reality is that money and work are not linear.
In fact, there are several ways to make money in a non-linear fashion. You can earn money by investing into the stock market and gaining the dividends. In this day and age, you could even invest a few hours creating courses that sell in your sleep.
The fact is, you don’t have to trade stressful hours to earn more money. Money has the unique ability to compound and scale when placed in the right vehicles.
Here are a few ideas to earn more money on fewer hours:
- Blogging
- Youtubing
- Building websites
- Building apps
- Creating an online course
There you have it. The 3 biggest differences between how the rich and middle class think. There’s so much more I want to share on the topic. Let me know below if you’d like to learn more!
