the rich mindset

The Poor, the Middle Class, and the Sane

That’s right I said it. Do you know the rich mindset? Being poor or middle class isn’t just some fine and dandy way to live.  It’s a byproduct of flawed thinking.  I’m not saying you ever have to get to the point of being rich.  What I am saying is that most people aren’t poor or middle class because they choose to be.  They are stuck in their own garbage thought process, and constantly getting in the way of their own progress.

the rich mindsetThis article may draw a lot of criticism, and even some insults.  So here is one disclaimer to put this article into context. I’m primarily talking about people who live in first world countries.  Even though some of this conversation may pertain to people who live elsewhere, I’m not so insensitive as to ignore that people who live in shanties, or in war zones are  faced with some severely limiting circumstances.  What I’m saying is that if you have food, running water, a roof over your head, and the ability to go out into the street every day to make your dreams come true, chances are the only thing that’s been stopping you is YOU.

 

The Proof is in the Pudding……

The reason I’m so adamant about my stance is that you can usually quite easily map out a person’s history of decision making and point out quite clearly why many of their decisions were kind of….you know…..stupid.

Here are some of the ways people have royally set themselves back from ever reaching their goals.

  1. They have children they do zero planning for– I’m sorry but somebody has to point this out. Babies don’t get made by accident.  You kind of have to do some very intentional behaviors in order to make one or several children.  It’s not a mystery that X causes Y.

 

And you hear all sorts of excuses why having more children than can be afforded is just some freak accident, or a mysterious act of God.

 

“We weren’t planning on the third one.”….well you must have followed some plan of action to get the deed done.

 

“You just figure it out as you go.”….well no not really.  You actually have a grown up conversations with a qualified partner, and you start making preparations for the expected child.  Building up savings, starting a college savings plan, establishing yourself in your career, and reading books on how to effectively raise kids.

I have a daughter.  I love kids.  In fact, I love them so much that I want each one entering the world to be properly cared for and provided for.  Otherwise, they get to watch the insanity of arguing, stressed-out, debt ridden parents set an example of how they should live their lives.

 

  1. They borrow money to buy really stupid stuff – When your income doesn’t cover your necessities in life like shelter, food, medicine, clothing, or utilities but you just maxed out your credit card to buy a boat or go on vacation……that’s pretty stupid.

 

I hate to break it to you, but the reason you have to buy the finer things in life that you want with credit cards and zero money down financing…….it’s because you haven’t earned it.  You haven’t built up your income, and build up your assets to the point where you can actually afford to pay for these things in cash.

 

There really isn’t an excuse.  Part of being a grown up is being able to practice self-discipline and delayed gratification.  If you want a $50,000.00 car, go make $50,000.00.  If you want a $100,000.00 boat, go and make a $100,000.00…..and have enough cash to fill up the gas tank too.

 

This isn’t rocket science.  Don’t buy things you can’t pay for.  Increase you means if you want a finer quality of life.  This isn’t an extremist point of view.  It just seems that way because the majority of poor and middle-class people have warped perceptions.

 

  1. They don’t understand that being money minded is just being a rational human being– I want to vomit when I see fiscally responsible people called cheap, or greedy, or some sort of extremist. There’s really nothing bad about not spending money that you don’t have.

 

If your gas tank is almost empty, is it weird to pull into a gas station to fill up?  NO.  Because you know that if you ignore the inconvenient fact that gas gets used up, eventually your car stops working and you get stranded on the side of the road.

 

So how come when your bank account is low, and your credit card debt is piling up, is it considered extreme or cheap to stop digging a hole?  Saying no to Disney World IS DEFINITELY WORTH IT when you can’t keep $100.00 in your savings account, and you have ABSOLUTELY NOTHING to retire on.  YOU HAVEN’T EARNED IT.

 

  1. They ignore countless opportunities to generate extra money– There are thousands of ways to make money that doesn’t require getting employed.   Especially today with the internet and Social Media.  In fact, I have people in Africa and the Philippines that work in my business in totally unique in order to provide a means for themselves.

 

Meanwhile, you’ll have full grown adults tell their children that the smartest thing to do is go $70K in debt to get a job that pays $60k a year.  $70K buys you your first rental property.  Nothing against education, but wouldn’t it make more sense to build a portfolio for your kids, and let the passive income fund that education?

 

I’m not writing this article to be judgmental or arrogant.  I’ve made, and continue to make plenty of my own dumb choices.  I eat fast food.  I will charge a meal to my credit card.  What I’m trying to say is that you have to own your actions.  It’s nobody else’s fault that I need to lose 30 pounds.  It’s nobody else’s fault that I didn’t start paying down my debt as aggressively as I should have.  It’s my job as a grown human being to figure out all the stupid decisions I make so that I make smarter and smarter decisions down the road.  Socially responsible decisions that don’t make me a burden to my children, my family, my friends, or taxpayers.  I firmly believe that the reason we’re dealing with a lot of today’s problems is that too many people somehow got it in their head that they aren’t responsible for cleaning up their own messes.

 

 

 

About The Author

herbertkoehler

I am a college drop out who found my passion as an investor. I love the many facets of finance, investing, and business. But even more than that, I love sharing what I learn with others.

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