Learn How to Rich vs Poor and Begin to Think Like the Rich to Be Wealthy
Being rich is absolutely something you can learn.I was poor growing up. I mean very poor. How I viewed myself and the world kept me from seeing how to be rich vs poor.
Then I made the change to learn how to be rich vs poor.
After that, I dedicated life to learning how the rich actually think differently that I did.
Now, you need to realize that being poor starts in your mind.
Here are the things I learned over the last 10 years that got me to be successfully unemployed with real estate investing.
When I quit my job and started investing in real estate, I realized what changed in me was my mindset and how I thought. Before I started investing, I had a mindset that kept me poor.
This is what I want to talk to you about today — your mindset and how a mindset shift can take you from being poor to being rich.
I want you to have a mindset that makes you money as opposed to keeping you poor.
The Rich vs Poor Pattern of Different Mindsets and View of Money
- The rich mindset is to be a problem solver
- The poor mindset is to think you are stuck where you are
- The rich mindset is to find ways to make passive income
- The poor mindset is to think working a job will make you rich
- The rich mindset is to have your money work for you with investing
- The poor mindset is to spend the money you earn never saving
- the rich mindset is to find creative ways to make money
- The poor mindset is to think the only way to make money is with a job
- The rich mindset is to see yourself as successful
- The poor mindset is to see yourself as a victim and are oppressed
- The rich mindset is to be humble and consider others more important than themselves
- the poor mindset is to think they are the most important person
- The rich mindset is to believe you can do what you put your mind to
- The poor mindset is to believe you are stuck with the hand you are delt
What I love about investing in real estate rental properties is that I make passive income. I work one time and make $250 a month from each property.
I buy it once and it works for me over and over again. I don’t personally do the work, my property managers do. I want to give you my free real estate investing course to help you get started. Get the free course here:
Today, I am going to walk you through the mindset shift that I had to go through myself, to stop being poor. Instead of being poor, I changed to a rich mindset and became rich.
The Poor Mindset Does Not Think of Investing or Saving
I am very blessed that my parents always told me not to rack up debt or get into credit card debt, because it would bad for me.
My mom filed bankruptcy right before she and my dad got married and that was really rough for them.
They didn’t want me to go through that. We grew up lower class, in a two-bedroom house. My parents, brother, and I lived in that house in a really rough part of town.
As I look back on my life, I didn’t have a lot when I was younger, but I didn’t know that. However, I developed some negative thoughts, habits, and patterns that kept me poor.
A Poor Mindset is a Self-Fulfilling Prophesy
Unless we learn to get out of a poor mindset, it will keep up poor. I was taught to never go into debt, for which I am very thankful. I never had credit card debt and never paid interest, but I didn’t actually learn to utilize debt to make money for myself.
I had no idea that was even possible!
The poor mindset is where you think you need to earn a job to earn money to get ahead in life.
The bad thing about working at a job is that our boss is paying us just enough to keep us working, but not so much that we are taking money out of their pocket.
Watch the Rich vs Poor Mindset Video Here:
Living this way will never get you ahead — you will always be living just over broke.
We learn to work a job and get paid for every hour of work. I, personally, don’t like that model, so I switched.
Other ways we have a poor mindset is by living on credit cards, living paycheck to paycheck, and thinking of how we can work for someone else to make money.
People with a Rich Mindset Ask, “How Can I Make Money Not with My Time, but with My Money”
With a rich mindset, if you use your time to make money, you can’t spend your time with your family or traveling or doing anything else.
If you use your money to make more money, you can use your time to do whatever you want.
When I buy one rental property, it makes me $250 or more every single month. It takes me about three hours from beginning to end.
Other people do work for me, like rehabbing and renting it out, but of my time, it is only three hours.
A wholesaler finds me a property, I look at it while drinking my coffee, I do an analysis that takes about five minutes, and then I have my property manager or realtor inspect the property.
After that, I buy the property, wire the money, and release the property manager to do the work. That’s it! Other people do all of the work from there.
I’ve owned properties for about 13 years. Recently, I was going through all of my deeds, and I have a big stack of them!
If you want to watch this on YouTube, go to masterpassiveincome.com/YouTube, and you can see my stack of deeds. I am restructuring and getting more LLCs, because I want to have a certain amount of properties in each LLC.
I have over 30 properties and about seven or eight LLCs to break them up.
Each property takes me three hours to purchase, and, because I am making money over and over, I can do whatever I want with my time.
This is the rich mindset — using my money to make more money.
The Rich Mindset Also Says: We are Going to Hire Other People to do the Work for Us
Instead of being the employees, we are going to switch it to where we have employees, or property managers or subcontractors, working for us. You may be thinking that hiring people takes a lot of time and money.
However, if you invest in real estate, you can have a property manager, a contractor, and a realtor, and, although you are paying them, it is not out of your own personal money. Your tenant is paying them.
I don’t pay my taxes, my insurance, my property manager, my mortgage, my interest or principle — my tenants pay that.
It filters through me, because I get the rent and I pay those bills out of that money, but it isn’t actually my money.
On top of that, because I rent properties for more than the expenses, I make more money, at least $250 per month per property, that goes in my pocket.
The difference between rent and expenses is what I get to keep as passive income.
The poor work for money, the rich have money work for them. The rich invest in passive income.
Rich vs Poor Mindset – Poor Mindsets Holding Us Back
The rich have a mindset of being problem solvers.
The rich see a problem and they solve it. If they need to make more money because they can’t pay their mortgage, they solve it. They may solve it by starting a side hustle or working for Uber.
They figure it out.
Rich vs Poor Mindset – Proactive vs Reactive
With a poor mindset, you believe this is just your lot in life. When there is a problem in front of you, you are reactive. A rich mindset makes you proactive and gives you many options.
When we are reactive, with a poor mindset, we maybe have one or two options, not many. We want to be proactive in everything!
With a poor mindset, if your car breaks down, you think: “How am I going to afford this? I am going to have to work more hours.”.
With a rich mindset, you think: “What business am I going to create, or what can I do extra to buy a different car.”. You look at different ways to problem solve, instead of accepting that it is the way it is.
With the rich mindset, if you are making money through passive income, your money makes you rich.
Your time makes you rich when you put your time into a business. You are creating passive income, where you work one time and make money over and over again.
Rich vs Poor Mindset – Rich Mindset is to Make Passive Income
For example, writing a book can make you passive income. You write a book and you make money over and over. If you write another book, you make even more as more people buy your book.
The poor have an active income mindset, where they work one time and they get paid for that one time.
Rich vs Poor Mindset – The Poor Mindset Is To Get Paid By The Hour
When they work an hour, they get paid for that hour.
This is not great, because if you have the active income mindset, you need to work more and spend more of your life for someone else making them money. We want passive income!
The rich mindset says instead of our job making us rich, we will make us rich.
This includes the assets, the passive income, the business, etc., because we are building things. The poor mindset says working for someone else will make you rich, but if you have a job, only you can work that job.
Your spouse or kids cannot work that job and you cannot pass that job down to someone else.
Rich vs Poor Mindset – The Rich Mindset Puts Their Money to Work for Them
If you buy a business or create a business and you have assets, or something that makes you money that you own, you can pass that down to your kids.
If you have a website that you own, you can pass that down to your kids.
If you are just an employee, you can’t pass your job down to your kids, your kids would need to be hired. As the rich, we work to create assets and know we will get rich through owning things.
The poor mindset is to get rich working a job, but your boss is only paying you enough to keep you working, but not too much.
We buy assets and things that appreciate over time, or make us money every month. The poor have a different mindset. They think saving money is the way to get rich.
People who are utilizing your savings, like banks, are making money off you. If you have $10,000 that you put in a savings account, you are getting maybe .02% interest, which means you may get $1.00 in return every month.
That bank is taking your money, lending it to somebody else, and they are making hundreds or thousands of dollars off of it. When they do this with everybody’s savings, millions of dollars, they make even more. It is such a racket!
Rich vs Poor Mindset – The Rich Mindset is to Find Ways to Make Money To Pay for the Things They Want
Instead of putting your money in a savings account and make pennies from it, where inflation is decreasing it, think like the rich:
- How can I buy assets?
- How can I buy a rental property that is going to make money?
- How can I buy a car to rent out on turo.com, which is like Airbnb for your car?
- How can I start a business to make more money
The rich mindset finds creative ways to make money. If you are doing this, you are making money. We want to buy assets that make us money.
Think of different ways you can create businesses to make money, or different things you can do, instead of working a job or two jobs, and spending your time at work.
I recently started a website called Successfully Unemployed, and a corresponding YouTube channel, which is where I interview entrepreneurs, business owners, and side hustlers that have done this.
These interviews show so many different ways to make money.
With a poor mindset, we are trapped. There are so many different types of businesses, and, no matter what your God-given talents are, you can utilize your talents to make you money.
The rich find creative ways to make money, not earn money. The poor mindset says to work more hours to make more money.
Eventually, as you age, you won’t be able to work anymore. Imagine you are able to retire and have money.
I retired when I was 37 years old, because I had so many rental properties and didn’t need to work anymore. Wouldn’t that be amazing?
Owning rental properties is a way to make money, and there should be a spot for that in your portfolio, but there are so many different ways.
Rich vs Poor Mindset – The Rich Mindset is to Have a Victor or Successful Mentality
This is near and dear to my heart. When I had a poor mindset, I had a victim mentality.
I thought it was my lot in to be poor and everyone was out to get me. I was pretty chubby when I was growing up going through school and I got picked on all the time.
Now I work on it by lifting weights, doing fun things, and walking with my family. I was afraid of things and thought people owed me.
When I realized that was a horrible mentality, I decided I needed to change my attitude.
I learned I needed a successful mindset, where I realize I am not a victim, I am a victor. A victim is someone who is getting picked on or beat up, but a victor is victorious.
I played football in high school and college, at Fresno State, and that was a lot of fun. During that time, I realized I wasn’t a victim and I could do whatever I wanted to, as long as I put my mind to it.
There are certain things I know I am not good at, like being an engineer or a rocket scientist, but if I put my mind to it, I am going to succeed.
The rich have a victor mindset, and nobody is holding them down — they can move forward. If you change your attitude to being a victor, your outlook on life will be better.
I became happier and found more joy when I did this. The Bible says that we are more than conquerors in Jesus Christ (Romans 8:37), and I love that.
A Rich Mindset Is A Humble Mindset
A poor mindset makes you self centered and selfish. Before I changed my mindset, I didn’t think negatively about other people, I just didn’t think about them. I didn’t care about other people, because it was all about me.
The Bible says “…consider others as more important than yourself” (Philippians 2:3).
When I read that, I questioned why I should do that. After thinking about it, I realized my pride was holding me down and holding me in a victim mentality.
I was looking at myself, at being the top dog, and had a very high opinion of myself.
Since then, if you talk to me one-on-one, you will realize I will ask you so many more questions about you. I want to know more about you and care more about you.
After changing my mindset, I realized my life has gotten so much better, and the people around me have gotten so much better.
With a rich mindset it is about being humble and asking how can I help you.
As I got less prideful, I realized I was more joyful inside, because I was helping other people.
I also realized that people liked me more and I felt better about myself. Life got better and better.
The Rich Mindset is to Consider Others Better Than Yourself
Humility is the opposite of pride, and it doesn’t mean that you are putting yourself down and thinking less of yourself.
When you think “I am not good enough”, “I can’t do that”, etc., the key word in those phrases is “I” — you are still thinking about yourself! That isn’t humility, that is pride.
Humility is thinking of yourself less and not making those “I” statements. Instead, it is all about “you”, and what can I do to help you. “Enough about me, what about you?”
With my poor mindset, I was always concerned about what I had to say and what I was going to say next. I wanted to prove my point and I wanted to be right.
Now, it is no big deal, even if I am 99% right. I don’t want to put myself down, I want to put others ahead of myself.
This is what I want for you. Think of other people.
The more people I help and serve, the more money I make and I am able to be there for everyone else. Life is better.
The poor think they are the most important person. I’ve had employees in my business where they think I should be grateful they are working for me. I am grateful for them, but there are thousands of people that would do that job.
They are blessed that they are able to work for me. When an employee gets disgruntled and starts thinking I, I, I, that is the poor mindset. The people I promote are the givers and ask how can I help.
The rich mindset says you can do whatever you put your mind to.
If your mindset is to buy a rental property this year, you will do it. If your mindset is that you won’t, you won’t.
“Whether you think you can or whether you think you can't, you're right.”
— Henry Ford
If you think you can do it, you are right, because you will make it happen.
“Necessity is the mother of invention.”
— Plato
If I have a problem, and I can’t pay my mortgage or feed my family, the necessity is to do that. I am going to figure out how.
I am not going to say “woe is me”, I am going to do whatever it takes to get it done.
The poor mindset is the opposite, that you are stuck. Whatever hand you are dealt you are stuck.
We are not stuck with what we are given. We can change and we can grow.
We are blessed in America where, if you are born poor and you work hard, you will eventually be where you can be wealthy. When I was younger, my parents rented that two-bedroom house and we had an old Datsun station wagon.
We were poor!
We couldn’t even buy books to read, we had to go to the library. However, it got me to know the poor mindset as opposed to the rich. I had the poor mindset and I switched to having a rich mindset.
This is what I want for you — I want you to shift your mindset. A big part of that for me was reading the Bible and reading what Jesus said. It helped change me from a self-centered, egotistical person.
My goal is now to serve others and help as many people as I can, through Successfully Unemployed. I am showing people all of the different ways people are being Successfully Unemployed.
I am doing the same thing at Master Passive Income by giving things away for free.
Recently, I have been trying to grow my YouTube channel. Go to masterpassiveincome.com/YouTube, and click Subscribe. I am putting out great videos and more content that isn’t going to be in the podcast.
If you subscribe, email a picture of you subscribing, and I will send you the PDF version and the audio version of my best-selling book, How to Quit Your Job with Rental Properties.
I want to help you get started. It is better to give than to receive (Acts 20:35).
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