This is not a Kiyosaki inspired post, and it is definitely not within the lines of any Finance101 book or TEDTalk that is so within the mainstream media idea's and the narratives that want to keep the average person right outside of the limits of poverty, it definitely not a repetition of the elite's discourse to encourage normies to follow a certain path to get rich, making them think there a formula and a chest with hidden secrets to reach financial independence.
The worst part, is that average people fall for this tricks made for the uninitiated, but we are initiated, aren't we Hivers?
Why else would we be doing what we are doing here on LeoFinance? Yes, we are all blogging and consuming content on an obscure, digital money-generating, anti-establishment fighting, pseudo-anarchy supporting, deep-web-money-laundering relating, taxation-is-theft promulgating, inflation-kills-economies believing, conspiracy-theories accepting, self-definition living, off-grid-mentality acquiring, revolutionary-mindset thinking, North Korean crotchet weaving, Latvian-Origami making, Norwegian Guerilla training, Peruvian Salt Water drinking, ecosystem.
We don't fall for the traps set by the system. We know there is a formula to reach financial independence, but we are not going to get it so easily, and sure as hell they are not going to hand it to us. No, we have to find our own formula, we have to understand what works for us and what doesn't, we have to know where to adapt, where to compromise, and where to stand our ground whether it be in principles, ideas, mindset, rituals, experiences and much more.
There is a formula, but it is a different formula for each and one of us, but there are also common ingredients in every formula.
This post's idea is to share my experiences, tips, habits and general advice, so that other people can get whatever they want from them, but also so anyone reading this post chips in their two cents. Share a comment with what works for you and you think it could be useful for other people's journey towards financial independence.
I am not a rich man, and I'm nowhere near to being one, but I do have some good habits and experiences I can share. I'm on my way to financial independence, in fact there's been a couple of times where I almost hit the jackpot but I fell short by the slimmest of margins, but I've learned a lot during this process and in this journey, so all I want from this post, is to share my small/big experiences.
What do rich people do differently from poor people?
Don't save money
A lot of people think that saving money and living cheap while maintaining a sub-par lifestyle today, is the key to having money in the future. The logic is, if I live cheaply today and save my money, I can use that money to make more money so that in the future I don't have to live cheaply. This is part true, and part false. Yes, you have to avoid spending money willy-nilly, but not to save money. If savings accounts had higher interest rates, I'd say holding it in there, but the truth is that savings accounts are literally only used by poor people and they are a trap from the elite to take money from poor people by offering them sub-par returns and the entire banking system is basically setup to make the rich richer and the poor poorer. **Avoid unnecessarily spending cash, but what you save, don't put it on a savings account. Inflation is your enemy, a savings account is inflation's bitch.
Don't waste money on stupid shit you can't afford
As it sounds, don't live a life you don't deserve yet. You've seen those Facebook-tier posts about "“We buy things we don't need with money we don't have to impress people we don't like.” and as corny as it may sound, and as boomer as it may be, it is completely true. Stop being a consoomer. This is basic and most people know it, but that doesn't mean they fall for this trap and end up being a meme. Don't fall for the consoom meme. This doesn't mean you should be a cheap-ass, it means you should live within your means.
In case you're lost, a consoomer bases his entire identity on consuming the latest tech, entertainment, and media like a glutton consumes food, indiscriminately and without appreciating its intrinsic worth or lack thereof, or for whom the consumption of content becomes mechanical and compulsive. This indulgent, hedonistic, selfish consumption bring no significant improvement for his/ her life and yet, they can't stop consooming.
Get surrounded by rich people
(By the way and addressing the first point, ask them if they keep any money in a savings account - they don't. 100% of their money is in stocks and property, that's how most rich people roll.) Learn their ways. Successful people are extremely sensitive to red flags that might trap them and fuck them over i.e. investment opportunities and when to bail. First copy them, then learn how to detect them yourself. That's not something you can read on a book, you have to learn through experience and if someone coaches you, better. Know the players and who calls the shots. Be their friend. Know who is young, not stupid, they will be the next player. Be their friend too.
There's no room for loyalty
Move on to greener pastures whenever the opportunity strikes. Rich people don't get stuck on principles or attachment to ideals. You can be ethical, but don't be a bag holder or excessively attached to ideals of quality, workmanship, the "nobility of work" etc. You have to be able to have a big picture view at all times and realize that small details tend to figure themselves out when you get the big items in place.
Don't penny pinch
Not to be confused with being retarded and living a life you can't afford - just like in the very first advice I gave you, literally 4 paragraphs above. Penny pinching is a mediocre mindset that will get you stuck in the six figure hell. Rich people are pretty loose with their money when they need to do so. They intuitively understand that you have to spend money to make money. Most rich people have an understanding of the world around them and knowing more about your opponents hand is better than knowing your own. These guys already know where they are putting the return from the next investment they get after the current one.
That's pretty much it. Everything else is a meme, including education, technical know how, being loyal, being a good wagecuck.
Take care of your environment
Rich people understand perfectly the environment they are surrounded with affects their psyche and performance. Rich people adjust their living environment to maximize their focus. Clean your surroundings, close the door and don't let the spouse or the dogs get in your way - work time is work time. Learn to prioritize, if you want to make money the people around you need to know this and support you, if they don't understand where the boat is going, throw them off the boat. Your surroundings are everything. 4 hours in a perfect environment are more effective and efficient than 8 hours with interruptions, distractions, and bananas.
Postpone gratification and avoid emotions.
Gratification gives you the false sense of accomplishment and you relax, you have to keep your eyes on the target. Gratification takes your eyes off the bullseye. Rich people also have a massive impulse control. You have to be able to never act out of emotion and only make decisions when you are completely cold and rational, that's the rich people's way.
Being poor or rich is not about what you have, but how you think.
I have a friend, not close to me but I know him. He's poor as fuck. He lives above his means. He spends like there's no tomorrow. He saves but doesn't invest his money. He has no immediate plans and holds no future plans. He's lazy and has no work ethic whatsoever. He doesn't accommodate his expenses (orders food, never cooks, buys games and online crap). He doesn't care about himself, he's kinda fat and he never stimulates his brain. He's always consuming some form of cheap entertainment. His room is a shithole, his apartment is a mess, and he's got very low hygiene standards. He always has an excuse not to do something.
He deserves to be poor, right?
Well, he isn't poor, I just told you that so his image would fit what I told you about him. In reality he's worth almost seven figures thanks to the shitcoin casino. He bought an alt that mooned and made it, he got lucky.
The thing is, having money didn't change a thing because he comes from a poor background. His approach towards life has remained the exact same as it was before being rich as fuck, and he doesn't even care about changing.
You are not getting lucky like him, you have to actually change your mindset and start thinking like rich people do.
Care to chip in?
According to your experience, what do rich people do differently from poor people?