Learning about the differences between the wealthy and the poor can help you with future financial decisions. Sure, some people were born with the silver spoon, but depending on your definition of wealth, many made it out of poverty thanks to their habits. Here are some things that separate the two groups, and hopefully, you will find ways to incorporate them into your life.
Staying organized
Another important thing that separates the wealthy and the poor is how they organize and prioritize their time. This simple habit of writing down your goals, organizing your day, and making weekly and monthly schedules and to-do lists was noticed in over 80 percent of the rich. Less than 20 percent of those with less money have to-do lists.
The goals
Wealthy people write down their goals and then focus on each by turning desire into action. Some statistics say that around 80 percent of the rich write down their goals, compared to only 12 percent of poorer people who have at least one goal on the paper.
Time is money
One thing that separates the rich from the poor is how they spend their free time. Most poor people will endlessly scroll on social media, while the rich only use it if it benefits their work. Additionally, the poor spend over an hour per day watching TV, while most wealthy people watch less than an hour. Interestingly, the rich tend not to watch reality TV.
Volunteering habits
When it comes to building connections, the wealthy know how to recognize opportunities outside the typical business environment. If you want to expand your circle of acquaintances, start volunteering. Around three-quarters of wealthy people network and volunteer, while this habit is extremely rare among the poor ones. How does volunteering help? There are always people on the boards of these organizations worth knowing.
Relying on luck
Nearly 80 percent of those who struggle with finances spend money playing the lottery. It is not about the game but the mindset. Wealthy people rarely play the lottery simply because they do not let circumstances shape them. Bad or good luck can equally be an opportunity for a rich person.
Spending vs. overspending
It is hard to save money if you’re already underpaid. The rich commonly save 20 percent of their net income, and though it might be too much for a less fortunate person, saving at least 10 percent would make a difference. It is about investing in your future self instead of overspending and ending up with debts you would never be able to pay off.
Investing opportunities
Wealthy people invest, while the poor spend. However, if you save at least 10 percent of your monthly income, you can start investing half of it in a year or two. But, before even trying, you need to educate yourself on financial literacy. Financial education is one of the most significant differences between the rich and the poor.
Education matters
Formal education can help but does not determine a person’s success. However, developing learning skills, learning about passion projects, or teaching yourself money-related subjects truly separates the rich from the poor. Most wealthy people spend their time advancing their knowledge and improving themselves. In comparison, only around one in 50 of those in financial trouble engage in these healthy habits.
Staying in shape
On average, around 80 percent of wealthy Americans exercise four times weekly. Among people with low incomes, around 20 percent understand the importance of fitness. It is about maintaining health, clearing your mind, and getting energized for a productive day.
Emotional intelligence
Unlike IQ, emotional intelligence can be improved. Wealthy people control their emotions over 90 percent of the time. Fear is one of the most common emotions humans experience, and knowing how to overcome it distinguishes the rich from the poor. EQ also helps with communication and conflicts, and if wealthy people appear cold, that’s because they are not letting their emotions get the better of them. That’s commonly not the case with those in financial trouble.
Eating contrasts
Rich people eat fewer sweets and fast food and tend to be in better shape by exercising. In contrast, people with low incomes eat in fast-food restaurants three times a week, indulge in candy, and are more likely to be overweight. One study found that 70% of wealthy people eat less than 300 calories of junk food daily compared to 97% of poor people who consume over 300 calories of junk food every day.
Knowing when to listen and when to talk
The wealthy know that by listening to someone, they can learn about them without giving away too much information about themselves. Around 11 percent of wealthy people blurt out what’s on their minds, compared to 70 percent of the poor. Instead of talking, the rich prefer to listen and not say whatever crosses their minds.
Delayed gratification
The rich tend to resist smaller but more immediate rewards to receive bigger ones in the future. However, the poor tend to be more impulsive, and that’s a problem, especially when it comes to spending. This is why the poor struggle to save even a tiny percentage of their earnings; therefore, they cannot turn their lives around. It is also about impulse control and EQ.
Views on wealth
Successful people tend to find inspiration in those more fortunate than them. In contrast, the poor resent the wealthy, which fills them with negativity and keeps them from learning lessons from those who have more. With this negativity, the poor focus on obstacles, while the rich focus on opportunities.
Setting financial goals
Setting financial goals is expected when you’re already wealthy, and it helps you accumulate more wealth. However, setting financial goals seems meaningless when you are among the poor. The truth is that anyone can create a budget, and with a goal in mind and lessons from the rich, the poor can also improve their financial positions.
Flashy objects
The rich are not easily distracted by flashy objects. They often lead frugal lifestyles and don’t like people to know their financial status. In contrast, the poor spend more on leasing fancy cars and buying brands because they seek outside validation. Around 13 percent of wealthy people drive luxury cars, compared to 9 percent of the poor. The difference is that the rich own them, while the poor lease them.
Parenting styles
The rich teach their children habits that will help them grow their wealth, manage wins and failures, and share their daily successes with them. In contrast, most poor people learn bad habits from their parents, and if they don’t change their mindsets, they will teach their children the same.
Choose wisely
The wealthy are surrounded by positive, supportive, and encouraging people. One study by Corley found that only 4 percent of low-income people have people with this mindset around them. Toxic people are draining, and to become a successful person, you have to find those who will inspire you and help you gain self-esteem and self-worth.
Thinking big vs. thinking small
Rich people think big and are focused on their life purpose. They know how to focus and take things step by step. The poor let circumstances consume them, and most never find their purpose. The rich allow themselves to dream big, while the poor usually no longer dream at all.
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Kate Smith, a self-proclaimed word nerd who relishes the power of language to inform, entertain, and inspire. Kate's passion for sharing knowledge and sparking meaningful conversations fuels her every word.