Today we have a
guest blogger - one of our friends from the University of Missouri Office for
Financial Success, Ryan Law. Mr. Law brings us insights into "How Rich
People Think."
I recently
picked up a copy of the book How Rich People Think by Steve Siebold. In the
book Siebold shares 100 lessons he learned over a period of 26 years as he
interviewed some of the wealthiest people in the world. The book reminds me of
a few of my other favorite finance books, including The Millioniaire Next Door
and Think and Grow Rich. These books don’t focus on money per se, but how rich
people think and act.
#13 Middle class
believes money is earned through labor…World class believes money is earned
through thought
“The average
person believes the harder they work the more money they’ll make. Their linear
thinking equates labor and effort with financial success. This is why most
people aren’t rich. They’re following an outdated model of success…The rich
know that creative thinking is the highest paid skill in the world.”
This idea of
creative thinking is a theme throughout the book. Siebold mentions numerous
times that the best thing you can do is work on training your mind to find
solutions to difficult problems. “The rich get richer,” Siebold says, “because
they know the world is overflowing with wealth disguised as problems that need
to be solved.” One way he recommends you train your mind is by investing at
least one hour per day studying subjects that will help you move toward your
vision.
#20 Middle class
earns money doing things they don’t like to do…World class gets rich doing what
they love
Surely you have
heard the philosophy that you should “do what you love and the money will
follow.” Do you believe that is true? On the last day of my class each semester
I ask the question “How many of you truly believe you can do something you love
and get paid well for it?” Most students raise their hands, but the reality is
that most people don’t like what they do. Forbes reported on a study that
showed that only 19% are satisfied with the work they do, 16% are somewhat
satisfied and almost 2/3 of all people are dissatisfied, or unhappy in the work
they do.
Siebold says
“…passion is the real secret of getting rich…The rich go to work every day
feeling passion for what they do, and their passion fuels their efforts.”
#50 Middle class
dreams of having enough money to retire…World class dreams of having enough
money to impact the world
What is your
major money goal? Siebold says “…the masses major goal with money is to retire
at 65 and hopefully have enough money to survive until they die. The world
class, while often no more ambitious, set their sights on impacting the world
with their wealth.”
Most people want
to make a positive impact on the world. Think about some specific things you
could do to make a difference for other people if you had the money to do it.
#58 Middle class
have loosely defined goals with flexible deadlines…World class have highly
defined goals with do or die deadlines
Jim Rohn, a
famous speaker, author and consultant tells a story of meeting with his mentor,
Earl Shoaff, for the first time. Shoaff said “Let’s start with reviewing your
goals.” Rohn said he didn’t have them with him so Shoaff said “Are they in your
car? Why don’t you go get them so we can review them.” Rohn said they weren’t
in his car and in fact he didn’t have any written goals. Shoaff then drilled
into Rohn’s head the importance of having goals, and Rohn went on to equate
this one principle with the majority of his success.
Siebold says
only 3% of people have goals specific enough to generate the level of mental
energy required for success, while “World-class thinkers focus on the single
most important goal they desire and set a deadline for its achievement…Their do
or die commitment to building a financial empire virtually guarantees their
success.”
Here are a few
of Siebold’s other lessons. World class…
Believes building wealth is a team effort
Focusses on money making activities
Has an action mentality
Takes calculated risks
Believes money is about freedom
Believes in self-reliance
Is internally motivated to make money
Believes starting a business is the fastest
road to wealth
I encourage you
to read books like this that challenge your thinking. You may not agree with
everything Siebold or other authors like him say, but I believe it is a healthy
thing to read things like this and seek for ways to improve your thinking.
