Poor Mindset vs Rich Mindset: How Do They Differ?

Why is it that rich people seem to get richer and poor people get poorer? Is it because they have money-saving strategies that financially challenged individuals are not privy to?

In a recent study where 350 people from various financial backgrounds were interviewed, it was found that 80% of self-made millionaires pursued major purposes in life. Seventy-one percent of them also maintain a positive outlook in life as they think this is vital to their success. Meanwhile, 78% of financially challenged people surveyed demonstrated a “poor mindset” and they believed optimism wasn’t important in life.

By looking at the survey findings above, one can conclude that the answer to the question posed above is having a “rich mindset” or a mentality of abundance.

Those with a rich mindset practice a can-do philosophy that allows them to accomplish their goals and realize their dreams. They strive, not to live excessively, but to live comfortably and securely. This refers to keeping a lifestyle without having to worry about where to get funds for their everyday expenses while affording a little luxury.

On the other hand, there are those who live from paycheck to paycheck, as they lack the fundamental grasp of money management and goal setting. Ultimately, what sets them apart from each other is their mentality and way of living.

People with a rich mentality and those with a poor mentality see the world from their own perspectives—it’s like apples and oranges! But some people have been to both sides of the fence (e.g., Do Won Chang, Oprah Winfrey, and Jack Ma), and it’s through perseverance, good habits, and the right mindset that they’ve come to be who and where they are today.

Below is an infographic that illustrates the stark contrast in thoughts and actions between the rich and the poor.

  1. Opportunities and Obstacles

 Poor mindset: It’ll take forever to get a certification or business license.(Ang tagal naman kasi bago makakuha ng certification o business license.)

Rich mindset: “No matter what happens, the opportunities are limitless.” (Kahit ano’ng mangyari, marami pang opportunities ang darating.)

People who have a poor mentality focus on the adverse outcomes without even trying it for themselves. For instance, when someone praises them for their talent and suggest they try to make a business out of it, they’d focus more on the possible hurdles they might face rather than see it as the great opportunity that it is (how a person with a rich mindset would).

 

  1. Risks and Rewards

Poor mindset: What’s in it for me?” (Anong mapapala ko diyan?)

Rich mindset: “I have to weigh in the negatives and positives before I bite the bullet.” (Bago ako mag-desisyon, kailangan ko munang timbangin ang pros and cons.)

A person with a poor mindset would immediately think “why spend money for a workshop when they can’t earn from it instantly?” In reality, they can leverage the knowledge they would gain from that event.

People with a rich mindset is more willing to take calculated risks for their personal, professional, and financial growth, even without a foreseeable reward straight away. They know that profitability takes time and hard work.

 

  1. Savings and Investments

Poor mindset: “It’s safer and better to keep my money in the bank.” (Mas maigi kung nasa bangko lang ang pera.)

Rich mindset: “I should grow my savings for a more secure and comfortable future.” (Kailangan kong palaguin ang savings ko para maging mas komportable at mabuti ang future ko.)

People with a poor mindset think that the only way to earn and get rich is to work day in and out. What they don’t realize is that there are ways to earn more and get passive income. People with a rich mindset, on the other hand, build their savings and put a portion of it in investments so they can grow their money. Of course, this comes with calculated risks and tediously acquired knowledge on financial management and investments.

 

  1. Failure and Success

Poor mindset: “They didn’t hire me because they didn’t see my potential.” (Hindi nila ako tinanggap kasi ‘di nila nakita ang potential ko.)

Rich mindset: “There’s no harm in trying and if it doesn’t work out, we can try again.” (Wala namang mawawala kung susubukan ko. Kung ‘di man gumana ngayon, pwede kong subukan ulit.)

Often, those with a poor mentality find fault in anything and blame their failures to anything—the environment, government, community, circumstances, and a list of others. Meanwhile, people with a rich mentality have a clear goal in mind to expand their skill set, see opportunities in failures, and make things happen for themselves.

 

  1. Time and Money

Poor mindset: “I don’t have time to expand my skills. I’ll just stick to what I know so long as I earn from it.” (Wala akong time para mag-aral ng bagong skills. Okay na ‘ko sa kung ano’ng alam ko kasi kumikita naman ako.)

Rich mindset: “The more I expand my skillset, the greater the asset I become, and the more opportunities I can find.” (Habang dumadami ang skills ko, mas nagiging malaking asset ako at mas maraming opportunities ang mahahanap ko.)

People with a rich mentality would never exchange their time for quick cash. They know that getting rich doesn’t happen overnight, so they take their time to invest in themselves and their goals.

Those with a poor mentality believe money is more important than time. But, they fail to realize that focusing on earning will be a waste of time unless they invest in their own personal growth. Sticking to what they currently know is more beneficial for them rather than honing a skill or training for a new one.

Because they have a mindset of scarcity, they usually want to receive something first, before giving anything. But time and money are necessary for their growth and eventual success.

 

  1. Praise and Criticism

Poor mindset: “He probably did some shady things on the side that’s why he got to the top.” (Siguro may mga ginawang pabor yan o sumipsip kaya tumaas ang posisyon.)

Rich mindset: “He deserves to be where he is now because he worked hard for it.” (Deserve niya kung nasaan siya ngayon dahil pinagsikapan niya ‘yon.)

Instead of feeling insecure or threatened, people with a rich mindset praise others for their successes. They acknowledge the carefully crafted strategies and hard work behind one’s achievements, which inspires them to do better.

Being in a poor mentality strikes bitterness and jealousy about others’ successes. Often, they look at everything from an unfair standpoint—thinking that it’s luck that got successful or rich people where they are.

 

  1. Questions and Assumptions

Poor mindset: “I’m just a nobody, they won’t listen to me.” (Wala namang papansin sa akin. Sino ba naman ako?)

Rich mindset: “It wouldn’t hurt to try if I ask questions or ask for advice.” (Walang mawawala kung susubukan kong magtanong o humingi ng advice.)

People with a rich mindset take the initiative to ask questions rather than automatically surrender to negative assumptions. They know the power of asking, and they don’t shy away from it. People with a poor mindset would think “They probably won’t have time to meet with me,’ or “They might not hear me out,” when they think about, say, asking for a raise.

 

Set Goals, Not Wishes

Wishing for something to happen is like waiting for a candle to light itself. If you want a pizza, the first step is to pick up the phone and call the delivery hotline or go to the store.

Those with a rich mindset list down their goals and break it down into actionable ones to better achieve it. They also plan out a timeline so they can see whether they’re on track. If they aren’t, either they adjust it accordingly or work extra hard to achieve it.

 

What kind of mindset do you have?

Not all millionaires and billionaires were born with a silver spoon, and even if they were, they still worked hard to keep their finances intact. Understand that how you think greatly influences how you live your life. It’s not enough to dream of becoming rich, you must work hard for it. Adopting a mindset of abundance will help you achieve your personal and financial goals.

At times when you find yourself falling short, you can rely on Cashalo for fast cash needs. Online lending in the Philippines can help finance your personal investments and business ventures. With a positive mentality, strong determination, and good money habits, you’ll eventually get where you’re headed.