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These 3 lessons will change the way you think about money

Opinions expressed by australiabusinessblog.com contributors are their own.

It might surprise you, but…poor people think about money a lot more than rich people. The difference is that they think about it the wrong way. They constantly worry about expenses exceeding their income, eagerly await their next paycheck, and even worry about losing their job if a crisis hits. In other words, they are in constant survival mode. Their financial problems boil down to one thing: a broken money mindset. They believe that resources are scarce, so they are always on the money.

The top 1% of income earners operate with a very different mindset. They don’t worry about running out of money. Instead, they think about how to make money – multiply. So let’s learn how to think about money.

Related: 3 Money-Making Tactics Rich People Use Every Day

Rich people are obsessed with earning more (not saving)

Now look at the financial world and you will see people moving their money into gold and other precious metals. The future is uncertain, so they accumulate their wealth in an asset that does not move. Their priority is hoarding and protecting what they already have in an effort to minimize losses. They cut costs where they can. Take less vacations, don’t eat out and the list goes on. This fixation on saving is a sign of a poor people mentality.

Rich people have a different mentality. They are always looking for opportunities. When markets take a dip, the majority sell out of fear, while the wealthy actively look to buy. And they do that by taking calculated risks, investing for the long term, and knowing that markets move up over time. They buy assets, identify problems they can fix, and duplicate what works.

Rich people understand leverage

Most people who grew up in a middle-class family think that hard work makes one rich. Now don’t get me wrong. Hard work is important. But if working 70-80 hours a week was a sure way to become a millionaire, every shift worker in the world would be rich!

The truth is that you need to learn where to channel this hard work to create more wealth. Really wealthy people know how to identify which activities are influential. They use their brain power, connections and other people’s labor or capital to create even more wealth. In other words, they focus on creative output and finding the right opportunities instead of living paycheck to paycheck. This is why they are able to amass huge sums of wealth in a shorter time frame.

Rich people focus on the result

Every day we choose where we put our energy. Poor people tend to waste it worrying about the future. Rich people focus on finding solutions to problems. They know that if they find a solution to a common problem, money will follow. And so they spend all of their time, resources and creative energy finding that solution and marketing it.

Imagine if our ancestors were only concerned about gathering nuts and berries and never turned to making tools to hunt for their food. Creative thinking is the fuel for progress. Wealth is just the by-product. Shift your focus to developing your natural creativity and money will follow.

Related: 10 things rich people do to keep getting richer

Learn how to think about money

Back in the UK I had to take out a student loan to go to university. Most people would have used this money to cover their expenses and have fun. But I immediately saw my chance. With the money the bank gave me, I bought a five-bedroom house – not only to avoid paying rent – but also because I could earn money by renting out the other four rooms to fellow students.

So what was debt became a $2,000/month asset that I used to fuel my first business. The rest is history. I’m telling you this because this is the kind of mindset you need in your life to get rich. You must understand that the world is abundant – you just need to learn how to make use of it in the right places.


Shreya has been with australiabusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider australiabusinessblog.com, Shreya seeks to understand an audience before creating memorable, persuasive copy.

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