There is one feature apart from one’s wealth that tells us if one is a rich bloke or a poor one – one’s behavior! The mindsets of a rich and broke person are completely different right from the way they think to the way they live. Though many differences exist between a rich and broke person, we are going to spell out the 5 major ones in this article, to provide you some clarity on this topic.
Rich Vs. Broke, 5 major differences that tell them apart
Broke Jump on every trend Vs. Rich Set & Invest into the trend
When a broke person gets a large sum through some source, he doesn’t know how to make maximum use of it. He would spend it on buying the latest design of clothes & accessories. He would get himself the latest model of the smartphone and flaunt his lifestyle among his peers and friends. He wouldn’t pause to know if he is investing in the right product or not. He would go with the flow and buy a whole lot of things that belong to the latest models and trends.
A rich person, on the other hand, would know better and he would invest his money on a trend only after he has analyzed it completely. He invests in a trend only if he is sure of returns. This way, he always ensures that he takes care of his money well and puts in the right places so that it grows. He never bows down to peer-pressure or social pressure. He lives his life his way, by taking decisions of investment only after careful investigation.
Clothes aren’t important for rich people
Dressing and styling are two important facets in a broke person’s life. He wants to dress up like a rich person so that he can impress others. He wears the latest designer clothes with matching stylish accessories such as a watch, chain, bracelet, belts, wallets, etc. He dresses to impress others and not to express his personality. He spends a lot on the latest designer wear clothing so that he can attract second glances from people, wherever he goes.
A rich person doesn’t pay attention to clothes. That doesn’t mean he is shabbily dressed. He is always dressed in smart, comfortable wear, which doesn’t scream of his wealth. You would understand what we are speaking about if you had seen a picture that Mark Zuckerberg had posted a few months ago when he was taking a stroll with his wife. Dressed in a simple tee and shorts, the man was smart, elegant yet simple!
Broke Invest in cars & sneakers Vs. Rich Invest in books & seminars
The main problem with a broke person is that he doesn’t know to manage his finances well. That’s precisely the reason why he is broke! When he gets a lump amount as an inheritance or lottery win or other sources, one of the first things he would do is to invest the money in the latest cars and fashion items. He considers these material possessions as representations of his personality and keeps changing his possessions as per the latest trend, thereby wasting a lot of money in the bargain.
On the contrary, a rich person knows where he has to put his money in. He understands that cars, sneakers, dresses and other material possessions hold no value in terms of growing his money. Therefore, he invests in productive purposes such as books and seminars. He invests in self-motivational and educational books that teach him something new every day. He invests heavily in online seminars so that he can learn the new trends in his business and grow it to a big level, thereby increasing his profitability and net worth.
Brook Party every weekend Vs. Rich learn something new every weekend
As we saw in the previous paragraphs, a broke person is one who loves to flaunt his wealth among his friends. His focus is not on making his money grow but on spending it for things that he considers as “status symbols.” Going for parties every weekend at fancy clubs and spending a lot on drinks and other vices are part of his regular lifestyle. He leads a very extravagant lifestyle as he wants everybody to know of his wealth and speak proudly about him.
A rich person does enjoy his life, but not by going for parties every weekend. Instead, he invests in activities that help him learn something new every weekend. Some rich people enrollin a business management course on the weekends so that they can not only spend their time usefully but also implement new ideas in their business ventures to make their money grow phenomenally. They spend money on courses and e-learning modules during the weekend, which helps their wealth to multiply.
Brook Play not to lose Vs. Rich play to win
There is a huge difference between playing for a win and playing for not losing. A broke person plays a game (it could be any game, or it could be an important decision that he takes in his life) so that he doesn’t lose it. By having a goal of not losing, he has already adopted a defensive strategy. This curbs his appetite for risk and limits the possibilities for good results. He may not face any adverse situation by playing safely, but he loses out on a great deal as he hasn’t even tried to explore what the world has in store for him.
A rich person always plays a game to win. His goal is clear, and he is ready to face any challenge that comes his way so that he can taste victory at the end. He is open to taking as many risks as possible, and he doesn’t lose out on any chance or opportunity that knocks his door. Therefore, he is exposed to a world full of opportunities, and there is a high probability that he will succeed and increase his wealth exponentially.
In short, the major difference between a rich person and a broke person is that the former always thinks of ways to make his money work hard for him whereas the latter always works hard for his money.
Conclusion:
In conclusion, the differences between the rich and the broke are often stark and can be attributed to various factors. The top five major differences that distinguish them from each other include their mindset and attitude towards money, financial habits and decision-making, ability to invest and build wealth, network and connections, and financial education and literacy level.
While some may argue that the wealthy are born with an advantage, the truth is that anyone can adopt the habits and mindset of the rich and make significant progress toward building wealth. Anyone can achieve financial stability and success by developing a strong financial education, creating a disciplined savings plan, and seeking out opportunities to invest and grow their wealth.
Frequently Asked Questions:
Don t go broke trying to look rich?
Spending beyond your means to maintain a certain image can lead to financial troubles. It’s important to prioritize financial stability and avoid overspending on material possessions. Developing healthy financial habits, setting a budget, and focusing on building wealth can lead to a more secure financial future.
Why do rich people like quiet?
Quiet environments can provide privacy and security, which is important for those in the public eye. Additionally, quiet space can offer a break from the constant stimulation and demands of a busy lifestyle. Finally, some people enjoy the peace and tranquility that a quiet environment can offer.
Why do rich people play golf?
Golf is often associated with the affluent due to the cost and exclusivity of some courses. Playing golf can provide a networking opportunity to connect with other successful individuals. Additionally, it can be a way to enjoy the outdoors and stay physically active while still engaging in a leisurely activity.
Hello, my name is Idammah, and I am the founder of Wolfionaire.com, a personal development, and finance blog focused on motivation, success, and wealth. I am obsessed with studying the world's wealthiest individuals and learning about their path to success. I believe anyone can achieve their financial goals with the right mindset and strategies, and I hope to inspire and empower my readers to pursue their own path to success.
Very well written post. It will be helpful to everyone who utilizes it, including yours truly :). Keep doing what you are doing – can’r wait to read more posts.
yeh for sure, thanks for that