Why poor people stay poor

World’s richest woman Gina Rinehart is enduring a media firestorm over an article in which she takes the “jealous” middle class to task for “drinking, or smoking and socializing” rather than working to earn their own fortune.

What if she has a point?

Steve Siebold, author of How Rich People Think<, spent nearly three decades interviewing millionaires around the world to find out what separates them from everyone else. It had little to do with money itself, he told Business Insider. It was about their mentality. "[The middle class] tells people to be happy with what they have," he said. "And on the whole, most people are steeped in fear when it comes to money." 1. Average people think MONEY is the root of all evil. Rich people believe POVERTY is the root of all evil.

“The average person has been brainwashed to believe rich people are lucky or dishonest,” Siebold writes.

That’s why there’s a certain shame that comes along with “getting rich” in lower-income communities.

“The world class knows that while having money doesn’t guarantee happiness, it does make your life easier and more enjoyable.”

2. Average people think selfishness is a vice. Rich people think selfishness is a virtue.

“The rich go out there and try to make themselves happy. They don’t try to pretend to save the world,” Siebold told Business Insider.

The problem is that middle class people see that as a negative––and it’s keeping them poor, he writes.

“If you’re not taking care of you, you’re not in a position to help anyone else. You can’t give what you don’t have.”

3. Average people have a lottery mentality. Rich people have an action mentality.

“While the masses are waiting to pick the right numbers and praying for prosperity, the great ones are solving problems,” Siebold writes.

“The hero [middle class people] are waiting for may be God, government, their boss or their spouse. It’s the average person’s level of thinking that breeds this approach to life and living while the clock keeps ticking away.”

4. Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge.

“Many world-class performers have little formal education, and have amassed their wealth through the acquisition and subsequent sale of specific knowledge,” he writes.

“Meanwhile, the masses are convinced that master’s degrees and doctorates are the way to wealth, mostly because they are trapped in the linear line of thought that holds them back from higher levels of consciousness…The wealthy aren’t interested in the means, only the end.”

5. Average people long for the good old days. Rich people dream of the future.

“Self-made millionaires get rich because they’re willing to bet on themselves and project their dreams, goals and ideas into an unknown future,” Siebold writes.

“People who believe their best days are behind them rarely get rich, and often struggle with unhappiness and depression.”

6. Average people see money through the eyes of emotion. Rich people think about money logically.

“An ordinarily smart, well-educated and otherwise successful person can be instantly transformed into a fear-based, scarcity driven thinker whose greatest financial aspiration is to retire comfortably,” he writes.

“The world class sees money for what it is and what it’s not, through the eyes of logic. The great ones know money is a critical tool that presents options and opportunities.”

7. Average people earn money doing things they don’t love. Rich people follow their passion.

“To the average person, it looks like the rich are working all the time,” Siebold says. “But one of the smartest strategies of the world class is doing what they love and finding a way to get paid for it.”

On the other hand, middle class take jobs they don’t enjoy “because they need the money and they’ve been trained in school and conditioned by society to live in a linear thinking world that equates earning money with physical or mental effort.”

8. Average people set low expectations so they’re never disappointed. Rich people are up for the challenge.

“Psychologists and other mental health experts often advise people to set low expectations for their life to ensure they are not disappointed,” Siebold writes.

“No one would ever strike it rich and live their dreams without huge expectations.”

9. Average people believe you have to DO something to get rich. Rich people believe you have to BE something to get rich.

“That’s why people like Donald Trump go from millionaire to nine billion dollars in debt and come back richer than ever,” he writes.

“While the masses are fixated on the doing and the immediate results of their actions, the great ones are learning and growing from every experience, whether it’s a success or a failure, knowing their true reward is becoming a human success machine that eventually produces outstanding results.”

10. Average people believe you need money to make money. Rich people use other people’s money.

Linear thought might tell people to make money in order to earn more, but Siebold says the rich aren’t afraid to fund their future from other people’s pockets.

“Rich people know not being solvent enough to personally afford something is not relevant. The real question is, ‘Is this worth buying, investing in, or pursuing?'” he writes.

11. Average people believe the markets are driven by logic and strategy. Rich people know they’re driven by emotion and greed.

Investing successfully in the stock market isn’t just about a fancy math formula.

“The rich know that the primary emotions that drive financial markets are fear and greed, and they factor this into all trades and trends they observe,” Siebold writes.

“This knowledge of human nature and its overlapping impact on trading give them strategic advantage in building greater wealth through leverage.”

12. Average people live beyond their means. Rich people live below theirs.

“Here’s how to live below your means and tap into the secret wealthy people have used for centuries: Get rich so you can afford to,” he writes.

“The rich live below their means, not because they’re so savvy, but because they make so much money that they can afford to live like royalty while still having a king’s ransom socked away for the future.”

13. Average people teach their children how to survive. Rich people teach their kids to get rich.

Rich parents teach their kids from an early age about the world of “haves” and “have-nots,” Siebold says. Even he admits many people have argued that he’s supporting the idea of elitism.

He disagrees.

“[People] say parents are teaching their kids to look down on the masses because they’re poor. This isn’t true,” he writes. “What they’re teaching their kids is to see the world through the eyes of objective reality––the way society really is.”

If children understand wealth early on, they’ll be more likely to strive for it later in life.

14. Average people let money stress them out. Rich people find peace of mind in wealth.

The reason wealthy people earn more wealth is that they’re not afraid to admit that money can solve most problems, Siebold says.

“[The middle class] sees money as a never-ending necessary evil that must be endured as part of life. The world class sees money as the great liberator, and with enough of it, they are able to purchase financial peace of mind.”

15. Average people would rather be entertained than educated. Rich people would rather be educated than entertained.

While the rich don’t put much stock in furthering wealth through formal education, they appreciate the power of learning long after college is over, Siebold says.

“Walk into a wealthy person’s home and one of the first things you’ll see is an extensive library of books they’ve used to educate themselves on how to become more successful,” he writes.

“The middle class reads novels, tabloids and entertainment magazines.”

16. Average people think rich people are snobs. Rich people just want to surround themselves with like-minded people.

The negative money mentality poisoning the middle class is what keeps the rich hanging out with the rich, he says.

“[Rich people] can’t afford the messages of doom and gloom,” he writes. “This is often misinterpreted by the masses as snobbery.

Labeling the world class as snobs is another way the middle class finds to feel better bout themselves and their chosen path of mediocrity.”

17. Average people focus on saving. Rich people focus on earning.

Siebold theorizes that the wealthy focus on what they’ll gain by taking risks, rather than how to save what they have.

“The masses are so focused on clipping coupons and living frugally they miss major opportunities,” he writes.

“Even in the midst of a cash flow crisis, the rich reject the nickle and dime thinking of the masses. They are the masters of focusing their mental energy where it belongs: on the big money.”

18. Average people play it safe with money. Rich people know when to take risks.

“Leverage is the watchword of the rich,” Siebold writes.

“Every investor loses money on occasion, but the world class knows no matter what happens, they will aways be able to earn more.”

19. Average people love to be comfortable. Rich people find comfort in uncertainty.

For the most part, it takes guts to take the risks necessary to make it as a millionaire––a challenge most middle class thinkers aren’t comfortable living with.

“Physical, psychological, and emotional comfort is the primary goal of the middle class mindset,” Siebold writes.

World class thinkers learn early on that becoming a millionaire isn’t easy and the need for comfort can be devastating. They learn to be comfortable while operating in a state of ongoing uncertainty.”

20. Average people never make the connection between money and health. Rich people know money can save your life.

While the middle class squabbles over the virtues of Obamacare and their company’s health plan, the super wealthy are enrolled in a super elite “boutique medical care” association, Siebold says.

“They pay a substantial yearly membership fee that guarantees them 24-hour access to a private physician who only serves a small group of members,” he writes.

“Some wealthy neighborhoods have implemented this strategy and even require the physician to live in the neighborhood.”

21. Average people believe they must choose between a great family and being rich. Rich people know you can have it all.

The idea the wealth must come at the expense of family time is nothing but a “cop-out”, Siebold says.

“The masses have been brainwashed to believe it’s an either/or equation,” he writes. “The rich know you can have anything you want if you approach the challenge with a mindset rooted in love and abundance.”

From Steve Siebold

Things I dislike about USA compared to Australia

Tax is not added to the product until they put it into the cash register. You calculate how much you want to or can afford to spend, pull out the money ready to pay, then they add from 7% to 10% onto the total. Illegal in Australia.

The public are allowed to buy and own little, easily concealable devices designed to kill humans from distance with ease. For this reason it has the highest murder rate of the western world. Illegal in Australia without thorough background checks and tests, which results in almost no one having a gun.

KFC USA discontinued the Twister and has disgusting scones instead of sweet mini bread rolls.

Car Smog checks. When your car is 5 years old, you have to waste an hour of your day and about $50 of your money, every single year for every car you own, getting a certificate to say that you don’t release an illegal amount of smog from your exhaust pipe. Fuck that up the ass. If my car is polluting the environment, just fine me when you catch me, stuff forcing every human in the state (possibly all USA) to waste their time and money every single year doing something unnecessary.

Hospitals charge about $3000 per hour for anything. It’s the biggest scam I’ve ever seen. The government has decided that instead of providing health care, they’ll just force everyone to get health insurance instead. Those without it are fucked.

There’s a lot of dumb people. Everywhere. Low life trash living among the good people. It means I have to put up with trash on the streets, graffiti, dangerous driving, mess inside shops from people knocking things over and leaving unwanted frozen items on a shelf after deciding they don’t want it or most likely can’t afford it.

Street side parking is normal, and annoying because people park their trashy cars everywhere, even in front of your house and make the place look ugly.

List of things I like about USA compared to Australia

Parking lines are not just a line but a box which indicates the door opening area. People are more likely to park in the centre of the car park.

8 foot fluro globes!

The different government sectors take a share of the tax so there’s incentive to become better than the next city or state.

The low minimum wage means food is cheap.

Roads are very wide with multiple lanes and they have a centre lane for turning so you don’t get stuck behind someone who’s waiting for traffic to pass so they can turn.

No luxury car tax means nice cars are more affordable so there’s more of them. Cars are almost half price too! If USA car is $x, Australian car is 2x – $12800. The budget cars are the same price, but as they get more expensive they double the cost in Australia.

Road side kerbs are higher in USA stopping people from driving up them and parking half on the road half on the walk way.

Roads have walk ways on both sides, not just one side.

You can turn right at a red traffic light if the coast is clear.

The quarter dollar coin is so small and light that you can keep lots of them and it doesn’t weigh your wallet down like a 20 or 50 cent Australian piece.

No helmets are required for over 18s riding a bike.

Fuel bowsers are all automatic and wont work until you’ve swiped your card into the machine. No need to even walk into the building.

Sensor taps and Dyson air blades everywhere. Toilet seat cover paper is everywhere.

Telephone poles are sometimes disguised with bark and palm leaves so you can’t tell it’s an ugly pole with antennas all over it.

Amazon. Cheap and quick.

Self serve icecream shops

 

What is an Atheist?

“For all I know, there could be a million gods out there, but without a requirement for them to exist, and without evidence that they exist, to believe in them is delusional.”

The words “atheist”, “agnostic” and “theist, are usually incorrectly assumed to be on a spectrum with one end as Atheists, the other end as Theists, and with Agnostics in the middle. It doesn’t work like that. All agnostics are atheists, because they use the same logic as atheists: “If there’s no proof for it to exist, there’s no reason to believe it exists.” The confusion of definitions comes from another group called anti-theists.

A new born baby with no knowledge, starts as an atheist. It’s not until they learn about gods that they can make the decision to add the belief of gods existing, or remain an atheist by not adding the belief of gods existing. If they remain an atheist, they can then justify their decision as agnostic, or they can add the opposing belief that there are no gods, which makes them an anti-theist. Adding the belief that there are gods is one end of the spectrum, and adding the belief that there no gods, is the other. Not adding any belief leaves you in the middle as an atheist and agnostic.

Theist: Belief that gods exist
Atheist: No belief that gods exist because they’ve never heard of gods or because there’s no proof
Agnostic: No belief that gods exist because there’s no proof
Anti-theist: Belief that gods do not exist

religion

 

 

Don’t tell people what you’re going to do.

Let them find out what you’ve done.

I’m always reminding myself of this, but I also wish I had a diary saying what I was going to do, so that I can check back and see if I’ve done it. But really, I don’t need to do that. It doesn’t benefit my life to see what I’ve failed, and having a reminder of what I’ve done isn’t going to improve my life, the part of doing it improves my life, reminding myself that I did it does nothing, unless I’ve forgotten what I’ve accomplished.

This always brings me back to the thought of, what’s the point of having a blog if I’m not helping anyone yet? It’s just a personal diary that isn’t on my harddrive where it can get lost or deleted in a hard drive crash. Hmmm…

Thumbs up for capitalism

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This photo defines capitalism for me. It is the reason I passionately LOVE and appreciate so much, the rights of the individual in the modern western world, in particular the USA, to own and control any legal material that you acquire. While there are many laws I don’t like about our western governments, I MUST live in a capitalist country. Nothing can be taken from you if it’s legal and you know the law. Governments that abuse individual rights sicken me.

 

 

What I’ve learnt about entrepreneurship.

So I’ve been “studying” entrepreneurialism” about 6 years now, ever since I decided I’m ready to be an entrepreneur. By “study”, I mean I consume every single piece of knowledge I can find.

I’ve learnt a hell of a lot, but the most important lessons I’ve learnt are the most disappointing ones.

1. No one will help you. Unless you get a mentor or cofounder, which is as hard as starting the business anyway.

2. Most advice is useless, a waste of time, and sometimes bad for your business. People who’ve had small success (<$1m business) don’t know how they succeeded, yet believe they are experts and will account for 99% of business advice in the world.

3. Motivation is only there when you see progress. At all other times, you have to relentlessly persist with faith that your efforts MAY pay off at an unknown time in the future. Could be tomorrow or in 20 years.

5. If you’re doing something new, you may have no idea what you’re doing… but thankfully no one else does either, so it’s ok to not know what you’re doing. What matters is that you learn what to do faster than your competitors.

6. The vision of your business is always perfect in your mind, but when you build it and use it, you learn that it’s not at all what you thought it’d be like and you then have to spend a lot of time and effort modifying it to work in the real world with other people.

Regular Anonymous Feedback

When I’m a CEO with employees I’ll have them do very short quarterly feedback forms regarding their job. The feedback forms will be categorized in a way that allows complete anonymity for any employee.

What do and don’t they like about the company and why?

Who do and don’t they like in the company and why?

How would they suggest the company and the employees change to make it a better place.

How do you rate the CEO? What are their weaknesses, strengths, and how should they change in order to run the company better.

I think this would make sure I never have unhappy employees.

 

Arnold Scharzenegger and the Land of Opportunity

I love this photo. It says everything about the California dream that Arnold pursued. I’m pretty sure there’s more to this photo. Perhaps it’s cropped for the website I found it on. But when I look at this, I see hard work paying off. I don’t know if he was a good governor, or if he’s a decent person, but I know he was an extremely hard worker and a smart man, and this photo shows the rewards. He’s relaxed, he’s sitting back in what looks like a mayor’s ego chair smoking a cigar like a boss. He’s thinking to himself… “Ahh… now THIS is the life. I’ve climbed my way here and I’m going to sit back and relax for a while.”