The variables that come to the table between those sitting down on the wealthy side and those sitting down on the opposite side have less to do with opportunity and more to do with their mindset. This is an important thing to acknowledge. Our background, our educational status and so many other variables are less impactful than the mindset that we have during our day to day lives. The mindset we choose to have will change absolutely everything. The mindset of the poor is commonly directed towards what they cannot afford and the mindset of the wealthy is more directed to how they can work to afford the things that they want.
Spending Habits
There are many differences between the spending habits of the wealthy and the spending habits of the poor. Those who are poor spend the money they make and then choose whether or not to invest what is left. Those who are on the wealthy side of the spectrum invest first and then spend when needed. The wealthy know that investing their money will result in long term cash flow while those on the poor end of the spectrum only care what the money they have can do for them in the here and now.
LLC Benefits
The wealthy know that having an LLC will protect their assets. If they are in a position where they are being sued, the person is actually suing a corporation or a company. There are layers that they will have to pierce to actually sue them directly and this is a very difficult task. The LLC also gives them the ability to write off more taxes from their business investments as well. People on the other end of the wealth spectrum are more often than not working a w-2 job and not able to get any tax breaks. Moreover, this thought process usually does not occur to them at all.
Investing
The wealthy and the poor handle their investments very differently. The wealthy are very active in their investments. They are aware of what is happening to their money on a regular basis. They find them personally, do extensive research, and understand the numbers and the fees involved in the investment. On the other hand, those on who are considered, “poor,” usually hand off their money to someone without any research involved. They hope for the best but are not truly aware of what is happening with their money at all. They do not fully take the time to understand the investment that they are making or have the knowledge to make the financial decision to invest at all.
Conclusion
Mindset is an invaluable asset when it comes to wealth. Those who are wealthy have an abundant mindset. They are purposeful about their spending habits and knowledgeable about where their money is going. They are direct about their objectives and they are fruitful in their investments. Those who are poor do not keep track of where their money is coming from or where it is going to. They may invest on a whim and hope for the best but they do not plan and follow their investments through to the end. This all comes down to the mindset that someone has. There is a clear line that draws the differences between the mindset of the wealthy and the mindset of the poor. If you can take the time to change your mindset, you can change your life.