2013-03-28, 05:10 AM
Regarding poor people and nice things, I read something recently which I think was about some new book, sorry I can't remember.
The opening question was: "You just won $10,000 in a scratch-off. Do you call your travel agent or your banker?"
They claim that "poor" thinking is "What can I spend this on?" whereas "rich" thinking is "What can I invest this in?"
(Note that "invest" can also mean something like "pay off my car so I have one less monthly bill to worry about", it doesn't necessarily mean stocks and such).
The reason they call this "poor" vs. "rich" thinking is the basic mindset.
The "poor" thinking goes something like, "I'm poor, but that doesn't mean I have to suffer constant deprivation. When I get some spare cash, I get nice things." Note that what they consider "spare" cash doesn't take debts or future expenses into account. That is why people with this type of thinking tend to sink deeper in debt every time an unexpected expense comes up.
The "rich" thinking goes like, "If I save my money and play it right, I will be able to afford everything I want one day." The risk with this type of thinking is that of living in greater austerity than they really need to, and never ever reaching the point where they allow themselves to buy "nice things".
The opening question was: "You just won $10,000 in a scratch-off. Do you call your travel agent or your banker?"
They claim that "poor" thinking is "What can I spend this on?" whereas "rich" thinking is "What can I invest this in?"
(Note that "invest" can also mean something like "pay off my car so I have one less monthly bill to worry about", it doesn't necessarily mean stocks and such).
The reason they call this "poor" vs. "rich" thinking is the basic mindset.
The "poor" thinking goes something like, "I'm poor, but that doesn't mean I have to suffer constant deprivation. When I get some spare cash, I get nice things." Note that what they consider "spare" cash doesn't take debts or future expenses into account. That is why people with this type of thinking tend to sink deeper in debt every time an unexpected expense comes up.
The "rich" thinking goes like, "If I save my money and play it right, I will be able to afford everything I want one day." The risk with this type of thinking is that of living in greater austerity than they really need to, and never ever reaching the point where they allow themselves to buy "nice things".