Rich people have a different mentality from the poor. The different mentality allows them to have a different routine from the poor. These differences between the rich and the poor are responsible for the growing wealth inequality in society today.

If you follow the life of a rich man for a day, you will notice that they never got their wealth by accident. They have continually put in hours and hours of diligence and dedication to their craft.

On the other hand, poor people are different; they give excuses all day and give just a fraction of the effort. They oversleep, waste time, and discuss irrelevant subjects like football and politics.

These differences make the poor poorer as the rich increase their wealth portfolio. As I have always said, 67.4% of wealthy people are self-made but 100% of poor people are self-made. Read our article on are you poor yet rich (Endowment of wealth) to understand more.

According to Dan Lok, the king of high ticket sales, your wealth will never grow unless you do. If you do not change your habits today, do not expect your financial situation to turn around any time soon.

Rich people versus poor people

#1. Poor people focus on savings while rich people focus on investing

This is one of the major differences between rich people and poor people. Rich people are masters at investing. They hate to save. They understand that savings are always eaten away by inflation.

Nowadays, interest rates for both loans and deposits are almost approaching zero in many developed countries. Therefore, those who save are gaining no interest income while those who borrow to invest are incurring almost zero interest expense.

Rich people do not save; they borrow what they need to invest. Poor people on the other hand believe that being in debt means that you are poor. They believe in saving slowly but steadily to invest.

Saving to invest is better than not saving at all but borrowing to invest is way much better. If you know what you are doing, finance investment projects through debt. Avoid wasting years trying to put away money in a savings account.

#2. Poor people get paid based on time while rich people based on results

Poor people sell their time for money. They have to work from 8/9-5 every day for a month to get a paycheck.

On the other hand, rich people are paid for the value they deliver to the client and not the amount of time they work. Even if they get results in one hour, it does not matter.

This means that rich people can get more income in a month by making more deals. No matter how much effort poor people put in a job, it will never reflect directly on the amount of income they get.

#3. poor people blame others while rich people take responsibility

This is one of the major differences between the rich and poor. Poor people blame others for their financial misfortunes. They blame the government, their parents, the economy, their employer, etc.

Rich people on the other hand take responsibility for where they are. When they lose money, it is their fault. Even if someone else was responsible for their misfortune, they make it their responsibility to fix it.

If you keep blaming others, you will keep expecting others to fix your situation. When you take responsibility, you know that no one else has the responsibility of fixing the mess.

#4. Poor people have a lottery mentality while rich people have an action mentality

Poor people believe in getting rich quick rather than putting in the effort and getting rich over time.

This is why most of them do betting, play lottery, invest in fake get-rich-quick schemes and so. These schemes are very risky and they end up losing money.

Investing in a lottery is also very risky. The probability of success is around one 1 in 1 million.

Rich people believe in building systems over time, taking market share through hard work, and growing their income by growing their financial knowledge.

#5. Poor people watch TV while rich people read books

Rich people are avid readers. They know that we are living in the information age. They understand that they have to feed their minds with knowledge for it to create revenue-generating ideas.

Poor people rarely read books; they would rather watch TV during their free time. They follow TV programs every day. Many lose around 3 hours every day watching TV programs.

Rich people use this time to learn. Most of them have a home library. They have tons of books that they read every day. The average millionaire reads one book per week.

#6. Poor people believe that money is the root of all evil while rich people believe that lack of money is the root of all evil.

Money is not the cause of problems in any society. It is the lack of it that causes people to engage in all manner of vices. Robbery, lies, murder, etc. are all caused by the lack of money.

Poor people believe that rich people are crooks and this is why they do not want to associate with them. This is not true. If you look into the lives of truly wealthy individuals, you will notice unmatched integrity and hard work.

Wealthy people use their resources to solve the world’s major problems. This is what money can do.

#7. Poor people know it all while rich people continue to learn

Poor people boast with the little they know. They will engage in arguments defending something so irrelevant. They will not seek advice and admit that they do not know anything.

Rich people continue learning every day. They admit that they do not know it all. They seek advice, hire advisors, and read books. This ensures that they continue being up to date with the world's major developments.

Conclusion                     

Poor people are poor because of their poor habits while rich people are rich because of their rich habits.

Since this is true, it means that you can position yourself for riches by doing what rich people do. If it worked for them, it will also work for you.