How to get rich: change your mindset

Do you know how to get rich? For most people, being rich is tied to making a lot of money. But what few people know is that in order to be rich, we first need to change our mindset.

To understand this relationship that people have with money, we used Robert Kiyosaki’s “Rich Dad Poor Dad”.

In this article, we will use Kiyosaki’s concepts of how to get rich. Their reflections represent the thinking of people who have achieved financial success.

Robert Kiyosaki, had the opportunity to have two parents. Her real father was a college graduate, but he had a difficult old age. His other father, in fact, was the father of his best friend. He didn’t even go to high school, but he was always an entrepreneur and had ideas on how to get rich.

The book “Rich Dad Poor Dad” brings us two worldviews. Through these visions, we become aware of our attitudes with money and can transform them so that we can have a prosperous life.

How to Get Rich: Two Ways to Make Money

The first way to earn money is to work. That money falls into your pocket in the form of a salary, which we consider the first source of income.

Another way to earn money would be through some asset that generates income, be it a rented house, some interest on some investment, or any investment that generates income.

This type of income we call assets. What are assets? These are assets that end up generating more income for you. Have you ever imagined sitting at home just getting some money without working for it? Believe me, many people live like that today. But what many people ignore, is that before that, these people invested their money in something that generates even more income.

On the other hand, you end up running out of money when you have a lot of expenses. Expenses are spent on food, health, education, and entertainment.

Other things that generate expenses are the assets that we call liabilities.

These goods end up generating new expenses, like a car that takes you to pay taxes, fuel and maintenance.

If you have a cell phone, you have expenses with a plan or credits from the operator. In other words, everything you own that leads you to generate more expenses is passive goods.

Understand the concepts: active vs. passive

Before you know how to get rich, understand these concepts. They are fundamental for us to develop a new mentality. After all, the overvaluation of one at the expense of the other that separates the poor from the rich. The difference is simple: while the asset puts money in your pocket, the liability generates more expenses.

This is because the way you deal with money is that it accentuates your standard behavior. It sets your mindset for dealing with money.

If a person has a good salary, but invests everything in expenses and passive goods, he tends to remain poor. Even if she receives a raise, she conditions this new salary to new expenses.

That is, it is not about what to do to make more money. It is about how you use the money you earn.

While the lower class has only expenses, the rich cultivate their assets. The middle class, on the other hand, buy liabilities thinking they are active.

Now that we understand the concept of assets and liabilities, let’s understand how the rich react to these two parameters.

Consumption mentality of a wealthy person

Our mind is conditioned to immediate pleasure, so few know how to get rich. If we are not careful with this trend, we lose money. So how does the rich react when he receives some money?

When a rich person receives an income, the first thing he does is invest in assets. These assets generate more income, and with this new income he reinvests. These attitudes are repeated until they become a virtuous circle.

Consumption mentality of a poor person

When you receive a raise, what is your first step?

Perhaps your first attitude is to change your car, subscribe to a better pay-TV package, or buy a new cell phone.

From a distance, you may even appear to be a wealthy person. However, you remain with a single source of income and are stuck in a debt stream. To live like this is to live in the “employee model”.

And if you lose that job, what are you going to do? This is a distorted view we have about money and it forces us to think in the short term how to pay the bills at the end of the month, for example.

While the poor sport superfluous goods first, the rich leave it last.

How to Get Rich: Pay You First

Before paying your creditors, make it a habit to pay yourself. The moment you prioritize asset acquisition, you generate wealth in the long run. This way, you make money work for you.

Taking this step should not mean being financially irresponsible. It means that you need to work on self-control, have the discipline to avoid in a vicious circle of indebtedness.

If you are in debt, do not use your reserves to pay off debts. Instead, view your debts as a challenge to generate even more money.

Our mind is our greatest asset

If you suffer from a lack of confidence, you should focus on studying how to get rich. You should know more about finance.

Knowledge can open many doors and will help you create your own opportunities instead of waiting for them.

Understand, the rich man is not rich because he worked hard, but because he sought the best opportunities, even if it meant working for free. That is, you need to develop creative ways to make income. Let go of fear and greed and take risks.

Time and education are two important assets for you to use. Use your time productively to acquire financial skills.

How to get rich

If you were not born rich and have an inheritance to invest, you need to find ways to earn more than you spend.

The first option is to get a promotion at work or get extra work. However, time is a scarce asset, it can harm your health in the long run.

The other option would be to think like the rich. The rich are always striving to increase the volume of assets. They use their money to open businesses, make investments, generate assets in general.

After a while they have a large amount of money without making an effort. It is only at this point that they begin to acquire luxury items.

In contrast, other people do the other way around. They want to have the best car, state-of-the-art smartphones and finance their properties.

Choose how to use every penny you earn. You can spend it or invest it – your choices determine whether you will be rich or poor.

Rich people prioritize assets, others prioritize liabilities. The journey to wealth is not about battling for money. It is about learning how to make money work for you.

by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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