The Main Differences that Separate the Rich and Poor (Things Rich People Do)
Hey what's up my YouTube family thanks, so much for tuning back into money in life TV my. Name is Mike the CPA and my, sidekick chipper, and I today have some really good, information for. You as we're, gonna be talking about the main differences, that, separate, the, rich and the poor now these are all the things I believe that, separate the rich from the poor if you, guys have different opinions please make sure to share them in the comment section down below now, I really think multiple. Factors, contribute, to an individual, becoming poor or rich during. Their lifespan or you know during the course of life so, in the past 15. Years of my life I've, studied what. Separates, the, have from the have-nots and so I really wanted to put this information, and, video together for you guys I really encourage you to watch from start to finish I think you're gonna get a lot out of it just. So you guys know I'm going, to be as open and honest as possible. When it comes this subject, matter this, video is truly for your entertainment education only, and that's the true purpose of it so if I say anything that offends you I apologize. But please know that I have not. That, my intention, is to not offend, anybody but. To really just talk about this subject in great, comprehensive. Detail as we're about to do here, today so stay tuned and let's let's start going over these details then, really the goal of this video is to if we can understand, what separates, the rich and the poor we, can learn how we can better improve our own individual, lives to. Get us closer to our reaching, our financial goals alright with that being said guys let's, get started I have some, of these factors, are financial. Related and some are not and so, let's kick things off for the first one is that I find, the first thing that separates the rich from the poor is written goals wealthy. Individuals, make time to write out their goals and they. Take them seriously, and that's very important the wealthy, take, their, goals seriously. Most people do not they. Plan and they strategize and by doing this process over, and over again they develop, a clear, sense of purpose and clarity in their life they, know what, they want and they go after it they develop, discipline. And eventually, achieve their goals what, I found throughout, the course of my life is the poor often never, take, time to write goals and if they do they, rarely. Take them seriously, and. I find this is the majority of people in America, do you guys find this to be triggered for yourself but like if you go around and ask people or I've, done this myself but if I've just asked, normal everyday people who I know about, their, goals or if they set goals on a regular basis I can, guarantee you that 90%. Of them are more will, say no if you if you try the same thing is that most people just don't set goals so, what I'm saying here is the poor are usually unclear, of what they want and they rarely think of their future or where, their life is headed this, type of thinking guys and behavior, leads to, an on disciplined. Life and lack, of discipline, eventually, equates to a lack of success in all areas of life now, if you guys have ever read any books by Brian Tracy if you, if you were to ask him what's the number, one factor in having, success, you, know what that is no he'll tell you he'll, tell you it's discipline, and that, is so, setting.
Goals In my, opinion helps, me become a more disciplined person and that's why the wealthy, do so well is because they have strategies, they have goals they have plans the poor middle class most. Of them do not number two let's talk about how they, how, the rich and poor spend their money and how they use debt so, the rich use debt to purchase assets starts to help create, assets, they, use other people's, money to acquire real estate investments, or to aid them and launching a new business the. Important takeaway here is that they the rich borrow, money to purchase. Things that. Will usually, make them more money, in the future the, rich shoot so when silver, than the rich use dead of, what I've seen is they they use debt to purchase assets which. The assets, eventually, increase their, monthly, income now, no no, no so when I say debt guys want, to take them to the rich take on debt I mean like within reason, okay so if anybody, takes, on too much debt it's gonna wipe them out so when I say the taking out debt they take out debt within reason, in, an amount that won't make or break them financially, so guys I think one of the largest reasons, the rich are hundreds. And even thousands. Of times richer. Than the poor north class in today's world, and economy, is because. The rich take. Their money that they make and they focus, it on purchasing assets and, so. When one owns assets such, as land, real. Estate stocks, etc. Inflation. Which is inflation, as you guys know is the dollars, purchasing. Power of roading over time so. Inflation. As, the dollar declines. In value which i've kind of talked about this in another video, but, as a dollar declines in value the, value of the assets, go up so have you guys noticed as so. Many people think that the cost of homes and whatnot is rising, but really, what's, truly happening is the value, of our dollar is, the. Continuing. To decrease and that's, why we see large increases, in costs, for things like homes land, etc, so. Inflation. Literally. Makes the rich richer, which is why one of the reasons why they're exponentially. Richer, thousands, of times richer than the portent of class I just wanted to make that very clear now. The poor middle class let's talk about how they spend their money the. Poor middle class use debt to buy stuff they, buy nice cars bigger, homes toys. Vacations. Etc, once, they have too much stuff they end up using, a company like public, storage these. Guys have seen probably seen those public storage places all around the country start, all their excess, items, and thinks and of, course that's another monthly expense to store. All this junk they're, not even use it anymore the, poor accumulate, liabilities, which often, raises, their, monthly expenses these. Expenses. Reduce. Their. Monthly. Cash flow their, monthly disposable cash flow they have at the end of each and every month so, basically, guys the rich buy assets, that make them more money the, poor and middle-class often. Buy assets, that actually make them poorer because, they, buy things, that increase their monthly expenses that, that makes sense if you, guys have ever read Robert, Kiyosaki's, book Rich Dad Poor Dad he. Talks exactly about, this kind of stuff which I'm talking about right here number. Three let's talk about leverage, now Dan Locke who, is a very, successful entrepreneur, who's. In as you, probably mid to late 30s he. Talks about leverage. As being, the number, one factor. Number one difference, between. The rich and the poor and this, guy is a very very successful businessman and I think he's right and I think he's got a very good point on this and, now he. Says the rich uses. Leverage in multiple, ways and I can leave and link up to his video down below in the description section, so you guys can watch that if you'd like but so, the rich employ other people's time so they they, look at employing people to help them run their business and grow, their business and they also look. At leveraging. Other people's time to help them with their daily chores so like you know landscaping. Like mowing the lawn having. A hiring a housekeeper to. Free up their time because they want to spend their time doing more valuable activities. Activities. That make them more and more money the other thing that we they do the, rich do is they use other people's money which we just talked about with the whole debt thing they, use other people's money to purchase assets, okay so we've already talked about that so I'm gonna skip on that then.
They Also use other people's knowledge that's number three here on this leverage. Concept. Is that they, they, learn from others so they read books they attend conferences, they attend seminars and, they, really, focus. On a lot of them find, a mentor, somebody who can teach them everything. They need to know to become successful in, the field they're working in so, if they person, wants to become a successful, real estate investor they'll, seek out a successful. Real estate investor and learn from them and that's how many people learn, to become wealthy so having a, good. Mentor is. Extremely. Valuable and even Dan Locke himself, will tell you that Dan, Locke says that if he did not have a mentor he would have never became wealthy, but, because he has somebody in his corner constantly. Teaching him new things he, was able to succeed in life and as that's where he's at today so. The rich use leverage, now, the poor middle-class are often reluctant, to. Hire other people even if they have the money to do so they, believe in doing things themselves, since that kind of the old way if you know if it's got to be done right I need to do it myself, they use they, do not use debt strategically. And they, are hesitant, I find they're hesitant to give out their hard-earned money to purchase, educational. Products or attend, conferences, so, these factors, is that the basically. The, poor, middle class they're, not trying, to use leverage in which I think they should be if they can or if they find ways to leverage, their time leverage. Their knowledge and their experience so, they can get further ahead financially, and just in other areas of their life but. Unfortunately. They, don't many. Of them don't think like that which is why. Leverage. Is so powerful, and why it makes the rich richer number four let's talk about money management because this is extremely important the people who are well-off used budgets, they keep track of their money in their finances that keep it very closely if they know what's going on with their taxes they know what's going on with, their investments, what their monthly. Expenditures. And things like that they, run their finances, like a business. Is from what I found from all my years of study and they're wealthy and they. Make sure their money has a specific. Purpose they, take time to ensure, they, are interacting, with their financial goals so they make. Time they're scheduled to do these types of things they. Do not live beyond their means and, they. They don't they try to stay out of debt you know I know we just talked about debt but by debt I mean they try to stay out of consumer, debt so they don't want to have credit. Card debt car, loans and things like that they. They, do not spend their money frivolously until. They can truly afford to do so and last but not least on the money management factor that I'm gonna say here is that the, excess money they make they. Use it to invest which. Increases. Their, wealth even more when it comes to money management the poor and middle-class often. Do not budget at all in fact I don't know if you guys know this if I talked about this in my budget, video my, free Excel budget spreadsheet. Video but, about 2/3 of the population actually. Don't even have a budget they don't even consider. It or take the time to do it by not tracking, their expenses, the poor middle class in up spending, their, money foolishly. And going into debt further when. They do have extra money they often use it to buy more, stuff more. Toys they chase status, rather, than pursuing, wealth, building, habits with, their money these, bad money management. Habits lead people to stay in poverty and in debt their entire life and we can see countless, examples.
In Our world today of that very, factor and it, doesn't matter how much money you make if you're not managing correctly, I mean you guys can look at famous athletes, you, can look at actors who, have mismanaged. Multi-million. Dollar fortunes, who are broke, and I think of a show on Netflix is called 3430, and you can watch athlete, after athlete never, taught money management these, people who are making millions. And millions, of dollars they're, broke now because they never learned how. To control their spending other emotions, so bottom line takeaway, here guys is that with money management for, some people if, they don't know how to manage money if you were to give them more money they'll, actually become poor, forget, think about that think, about if you actually give people money, they'll actually be worse off because you did so because, they buy things that cost. Them. More and more month that create more and more monthly expenses, for them ouch the. Fifth factor I find, to be very different, between the rich and poor is how they make, their money this one's huge guys so, if you study the richest people in the world most, of them achieve, their wealth through owning. Their own business, or investing, all, you have to do is look guys is look at the Forbes fortune 400 list and you'll, find proof of this all over the place now, listen to what I'm about to say very carefully I'm gonna reread this but the, rich invents. They. Create, and they sell, new products, and services through their business now let me say that again they're rich creates. They. Invent, and they, sell, new. Products, and services through, businesses, the. Key word here is sell the, rich sell goods and services to the general public this, allows them to exponentially. Expand, their income it is. Estimated, like let's take Bill Gates for example right who's one of the richest, people in the world has. Estimated that Bill Gates get, this guy's makes. Close to thirty three million, dollars, per, day. The. Average worker only makes around, 150. To 200, dollars per day which. Means you, guys are not gonna believe this but this means that Bill Gates, compared. To the average worker makes. 165, thousand. Times more, money, per, day than, the average, working, American, I know that sounds unbelievable, it sounds like but it's absolutely, true those, are the real numbers if you run the math the poor and middle class generally. Trade, time for money okay so they they don't go out there and create, products, that they're not often, trying to sell or invent new services, but. They they, go to work at a job which is fine it was just fine that, they trade their time for money and but, because they they trade their time for money they. Are limited, to only 24, hours per day by choosing to make their living in this way so. They're automatically. If you think about it because. They're limited to the amount of hours. They have in a day they're automatically, putting a cap on the amount of income they. Can make, because. Their compensation, is tied to the amount of hours they work and how much they make per hour famous.
Financial Youtuber, Ryan Scribner says it is nearly impossible and, by the way check out Ryan's channel he does great videos. He has great content so make sure to check that out but, Ryan Scribner says and I hope I'm not butchering your name Ryan but, it is nearly impossible for, one, to become rich, trading, time for money and I absolutely agree with him if we're just gonna trade our time for money we'll likely never achieve. True, financial freedom because. Our our, financial, means will always, be dependent, upon how much time we're, working so, if you're somebody who wants to build wealth here guys Jen I would highly, highly, consider, that, you think about starting your own business for, yourself that's what I want you guys to think about just. If. You ever walk think of next time you walk into a store like Walmart or, Target or, wherever wherever you're at look. Around on the shelves see all those products, our, services, that are being offered to you right in front of your eyes well somebody invented that somebody came up with that and that's what made them wealthy so, what, I see is that we're you know if you're in the store and none, of the products on the shelf are yours well. That. That's of and you're the one buying that product, well. Then that should be a very it's, very obvious, that in, order to become wealthy we need to sell goods and services to people buy, and we need to create, our own business you know or invest, our money so I mean just really consider that guys if we're, not selling, we're, not mate you know if, we're selling products, and services we're gonna be able to generate more income than we would just trading time for money, think. About it number, six let's talk about multiple, streams of income this, one is fairly obvious but, if you study the wealthy people, in America they usually have multiple, income. Streams they might have wages. They might have business income they. Might have rental income dividend. Income capital, gain income etc the majority of their income usually comes from one source so like usually if you study the study the wealthy what, I found is that they, do primarily. Make their income, from one main business, or one.
Main. Task. Or job right like, a like an actor or actors would make their money from movies as, an example but, they also have different revenue streams as well so. Guys what I found is that when I studied the wealthy most, of the time that. They made, the majority of their income from one thing just. From one thing but. They, use that extra income and spend. An additional time, also creating additional revenue, generating, activities so. The thing to start to diversify, their income unfortunately, if we look at the compare that's the poor middle class the. Poor middle class usually only has one source of income and I think all of you guys know where that's from it's usually from a job right I mean that's what most people do is they over. 90 percent of Americans, are employees that's how they make their living there's nothing wrong with that as a that's a way of life but that's. That's, where most people are at in this world that's where most of them stay - they, believe as long as they have one source of income they're, fine and I, don't think most people think about trying. To make more money outside of their day job or they don't I don't think most people start trying, to think about starting their own business picture is still guys now, if I were to ask you I hope, you have that like image of the stool in your mind if I, were to ask you that with, a stool with one leg would you feel that it was secure. Absolutely. Not if I still had one leg, I would be very scared to sit on it because I I know what's gonna break so wouldn't you want to have a stool that you sit in that has like three or four legs on it of course you would because then you would know it would be a more secure seat to sit in so. Think of your, income that way - if do, you want your whole family, to be supported, by one income, probably. Not so as quickly as you can I would, encourage you to diversify, your income streams because that's what the rich do and that's why part of the reason they're so wealthy because, if one thing goes down they have other things to keep them afloat they have other streams of income coming in regardless. Of what happens to their primary, job or. Other jobs or whatever it may be alright guys I've saved what I thought to be the most important for last time. And interest so let me explain what this about this, so, the, rich really, value their time so, successful, people in general they really, highly.
Value Their time they realize that time is their, most valuable asset they, use their time to be as productive as possible so they use their time to achieve financial freedom by. Investing, time working, on passive, income, building, activities, to. Initially do this it often means working longer than made our workday let's be honest you know a lot of successful people work much longer than eight hours a day many of them work nine, ten eleven twelve hours a day to eventually. Get to where they're at but, but. Once they're there they're, there however. Upon achieving their, financial, goals it gave more control over their schedule in life, they. Work on their personal goals they the, wealthy, often exercise and take care of their health they think, health is very important they make time to develop high income, producing skills dan Locke talks about a lot about this in his books and in, his videos is the importance, of taking time. To develop high income skills, the. Rich rarely, make time to play video games or watch TV not to say they didn't never do because I'm sure they do but they. They. Really focus, on productive, activities, that activities. That generate them. More, income or activities, that are designed. To meet their personal goals and because the very act of them. Pursuing. Their goals and working on their goals will make them happy and I think you'll find if you do the same thing as you'll be happy or a, much happier person when you know you're working on productive, goals to. Improve your life to, go after the life you want to have so. The poor and middle-class let's compare that to the poor middle class they, usually do not use. Their time as productively, they watch TV they, play games etc. Is it's not a bad thing to have fun and relax and I think we all should and we need to but, the point I'm really trying to make guys and, get at is that the poor in middle class or, rarely, use, their free time to develop higher income producing skills okay, guys so one, of them but what I'm about to say NYX might offend some people but. I truly just being open and honest with you guys about what I found in the real world so just please listen to hear and hear what I have to say so what I have found in the real world time. And time again is, that most, people, I find do. Not want to work, more when they get off work. So most people after a full day of work made us want to come home and relax nothing wrong with that it's a great life it's a choice right it's a choice we can all make, but. They also don't they don't they don't not want to develop new skills and they are not interested, in an investing or finance they're just not interested in the subject the simple truth is that I have found that is that people have other interests, and building. Wealth is usually, not one of them I mean I was reading the other day I think there's 1,300, people every, single day that are becoming millionaires yeah it's easier today to become, a millionaire than ever before and, I, think really what makes that difference or at least one of the reasons is you gotta want it bad and I think a lot of people based don't want it bad enough they say they want it but. They. Really don't there. Is nothing, wrong that have any other interests, each, person, gets to choose how they want to live their life but personally I believe that, this is one of the biggest, differences, if not the largest difference between. The rich and the poor I believe. It at least in my personal opinion I believe most, people could. Do better financially get. Out of debt and make more money etc if they only cared. More about these, kinds of things but, honest to god from my own real, world experience, I have found most people just. Don't, care about this kind of stuff like, they truly don't you try it yourself talk to people about finances, about, money most people don't want to talk about it most people don't care about it they want to know what's what sport how their sports teams doing they want to know when they're gonna take their next vacation they, want to know you, know what what character is gonna get voted off the island on, Survivor or you, know whatever whatever, it may be they, just have other interests and that's fine but.
The These, are some of the differences I've noticed is that the, people who want to do well financially they, care about their they care about money they care about finances, and they care about doing well the, people who don't which are the majority of Americans, they don't and I, think, everybody, could do better if they tried harder but, most people in my opinion they're really not trying that hard they think they are but they're truly not they're, truly not because most people don't try to build a business outside of work most, people aren't focused, on investing most, people I find and talk to you my real world and the, I live don't care less about investing, they just not interested, in it but bottom line guys with time is always remember that time, is your, most valuable asset it's a gift, we. All get we're, all in this earth for a certain period of time that's it and then. It's over so. I encourage all of you to, use. Your time wisely, to help others and to build wealth for your family and future generations, use. Your time productively to help other people that's what I encourage all of us to do whether you become rich or not who cares just. Use your time to help other people and, use it wisely, there's. A few other things I wanted to mention that I didn't really talk about in detail in this video but, I thought about that, often that. Are you know and make an impact as well in terms of the differences between rich and poor I think. This your attitude towards money the rich have, different attitude towards, money than the poor the. Poor views money as evil are not important, also. There is the attitude of personal responsibility of, the. I find that people who are successful, take. Responsibility, for their actions and for their failures and figure. Out what, they need to do do what it takes to succeed, well they and I find the people, who are not successful they, don't take personal responsibility they, blame other people they, blame circumstances. They make excuses they, find every reason not to succeed and they convince themselves of it so. Having. It an attitude, of personal responsibility is, huge in determining your overall success in life I, didn't. Mention gambling, so a lot of as you know a lot of poor people gamble, well the rich are rarely gamble, there's a very, few people make become. Wealthy by gambling, and most of them who win the, lotto and stuff like that they leave they usually don't. Know how to manage their money and they, usually spend, their entire a lot of fortune after they've won it well the last thing I want to mention guys is I did not talk about college education, but. Colin, college education, does not guarantee success or, wealth so whether whether. You're poor or whether you're rich your. College education, is probably not going to make or break you I found. From, studying, the. Wealthy and our successful, people in general these, other factors that we discussed in this video is truly. What makes or break them in the long run it's, having. Written goals it's, being intentional, with how one, spins their money and how one uses that it's, using, leverage it's, managing, money well it's making their money in a different way than being unemployed it's owning your own business or making your money or making it a living through investing it's creating. And focusing on generating multiple streams, of income not, being not feeling secure without having only one income or one job we need multiple, income. Sources coming in to be truly financially, secure, using their time productively. To. Develop, wealth and to go after their personal goals and to, pursue their interest and go. After it where they're truly passionate about in, my opinion those are the main things, those. Factors, that determines. Whether. Or not a person becomes wealthy, throughout their life I hope you guys can see from this discussion from. This video is that doing, these things guys is it's not just like a strategy, it's more of a lifestyle, choice it's, a lifestyle, to to. Want to make your living through owning your own business it's a lifestyle, to invest consistently, it's a lifestyle, to have goals it's, things that you don't just do once and stop it's things that are you do continually, throughout, your life but, if people do these things I really believe that people will be much better off financially, potentially. Develop wealth who knows it could happen but, either way I think people will do better financially if, they focus, on doing these things throughout, the course their life and develop these kind of habits. So. I know I went over this information kind of fast guys so, hope you know if you have questions let me know but. Really like if I what. Do you guys think really, separates the rich and the poor is there something I left out is there something that you, feel I didn't mention please.
Leave That in the, comment section down below I would love to hear what you guys think on this subject it's a very fun top topic, to talk about and I, love researching, and studying all this stuff and I will continue to do so throughout the course of my life so if you guys like the video let me know by hitting that like button down below I thought I would do something a little bit different than what I normally do on this channel be sure to share this information with a friend especially, with a friend who wants to do better financially and of, course guys as you know be sure to subscribe, to our channel money and Life TV if you have not already this, channel if you're brand new here well welcome. But this channel is all about helping people like yourself become, fiscally fit we teach finances. Investing, and taxes on a regular basis so be sure to subscribe before you leave today so you don't miss any of our future videos and uploads alright. Guys I appreciate you so much thanks for taking time out of your day to hang, out with me here on YouTube and watch this video with me I hope you got a lot out of it these, like, I said this stuff this information, I've put together for you guys is based, on 15, years of my experience studying, this stuff and I think if you do these things we, can all be if, we do these things we can all be better off so. Thanks so much guys for hanging out with me I love y'all I will, see you in the next video so, until, next time have a good week and always. Remember to live, your life on caged bye, guys peace.