7 Differences Between Rich People And Poor People

Not every rich person is born into a wealthy family, so how do so many well off people reach their financial goals. A major difference between rich people and those who have money problems can be found in the way they think, act and see the world.
All right let's count down from number seven.

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Number 7. Rich People Don't Try To Show Off Their Wealth;

It may sound surprising but there's no real need to buy a pair of $1000 jeans if you can find a high quality product that's 10 times cheaper. Wealthy people understand that and follow this strategy and this doesn't just apply to clothes.
On top of that most rich people don't blindly follow the latest fashion trends or buy a new collections just because they're popular today, they realize that this isn't the best financial investment and even more importantly they don't feel the need to prove anything to anyone else.
As for people with less money some of them are often eager to buy something that is trendy today but at the same time this product often cost a fortune. After such a purchase those who don't have the mentality of a rich person often have to save on buying food until they get their next paycheck. There's a lot of truth in this statement there are three kinds of people in the world. The have's, the have-not and the have not paid for what they have.

Number 6. Rich People Invest Money In Certain Expensive Items; 

Well some rich people may pick cheaper, though still high quality clothes over trendy items at an exorbitant price, there are things they don't save on.
Coffee machine: Perhaps you love coffee you can't live without drinking a cup or 2 a day, at the same time you believe that a coffee machine is too expensive to purchase. Well let's do some math. You pay between 2 and $5 for a Cup of coffee, okay let's take 350 as the average price if you buy at least 1 Cup of coffee every day, this turns into about $1,300 per year. You didn't we figure this out earlier right? At the same time a good coffee machine cost no more than $500, isn't that an impressive difference.
Induction stove:  An induction stove cost twice as much as their electric fella. But don't think that wealthy people only offer inductions stoves to make their kitchen look cool, the reason is that induction stoves are extremely efficient and almost 90% of the energy produced goes into heating your food. As for electric stoves their efficiency is only 70% gas stoves are the least effective only 40% of their energy is spent on heating food, one more benefit of induction stoves is that your meal is ready more quickly and therefore less energy is consumed.
LED light bulbs: Despite having many advantages LED light bulbs are still not that popular the reason for this is their high cost. But let's look at some numbers, an LED light bulb is 8 times more expensive than a regular incandescent bulb on the other hand an LED bulb consumes 10 times less electricity and well your ordinary light bulb works for a maximum of 1000 hours and LED bulbs has a service period of between 10,000 and 25,000 hours.
This means that  LED light bulb is approximately 7 times more economical than an ordinary and cheap incandescent bulb.
Energy saving glass: Most people prefer not to over pay by buying energy saving glass. After all a window with such glass cost 50% to 80% more than a window with regular glass but there's one thing you should take into consideration before making your final choice.
 40% of the heat generated inside your home is lost, thanks to low quality windows and with the money you spend on heating, it seems a bit unfair to have so much energy heating the outside of your house as for energy saving coating depending on its style you can reduce the transfer of heat through the glass by 75 - 90 %.
Now you can calculate how much money you could save by having those advanced windows remember to include not only the excess electricity you use for heating your home but also the electricity used by air conditioners to cool your home when it's hot outside, the great thing is that energy saving glass works for keeping your home both warm and cool.
Thermostatic shower faucet: At first it might seem that the mechanism that regulates the temperature of the water with preset settings is an unnecessary extra, surely you're capable of turning on the hot water and regulating it yourself. This gadget also cost 3 to 4 times more than an ordinary faucet, on the other hand a thermostatic shower faucet will start saving you money right away you won't have to spend ages trying to get your preferred water temperature in addition you'll be able to turn off the water while you're lathering and it will be the right temperature when you turn it on again wow. Is this how rich people brains work? but wait it's getting even better.

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Number 5. Rich People Make Their Money Work For Them While Poor People Work For Their Money;

Both poor and rich people work hard to earn money, but rich people know how to make their money work for them.
They don't keep their income and savings accounts, they have funds in their budget that they can invest and they do this regularly. Rich people sometimes have to sacrifice good shopping to invest money and receive much more at a later date that's called delayed gratification.
As for the less wealthy, they tend to spend all their money. This places them in a very unhappy vicious circle they work hard and they spend money then they take another job to be able to spend more but it's still not enough the more they earn, the more they spend.  They start working on the weekend and their life turns into a constant race of futile attempts to earn enough.

Number 4. Rich People Know How To Manage Their Money;

One more thing that makes most rich people stand out is their ability to manage money.
They know their budget they don't overspend. If they use a credit card they do everything to avoid paying finance charges, poor people on the contrary often live in a world of credit card bills most of them don't keep track of their money or plan a budget they spend money and when it's all gone they tend to use credit cards.

Number 3. Rich People See Opportunities While Poor People See Obstacles; 

Another thing that can differentiate the rich from the poor is the way they think. Rich people see opportunities for growth and success in everything they do, the reason is, it will be a success because I will make it a success. They take responsibility for their actions and decisions and are ready to go to any length to achieve the desired results.
As for poor people they usually focus on the obstacles, new beginnings may bring, potential losses and the risks they'll have to take.

Number 2. Rich People Concentrate On What They Want To Achieve While Poor People Focus On What They Want To Avoid; 

Rich people are fighters, they're willing to overcome obstacles to achieve their goal they realize that you can't win without taking risks. But they don't think about difficulties and losses they concentrate on their target and they get there.
Poor people on the contrary try to avoid risks by all means as they are afraid of losing their money, that's the reason why they might offer such safe investments as savings accounts and deposits but even if they don't lose their money this way they also don't make it work for them.

Number 1. Rich People Face Problems While Poor  People Try To Ignore Problems Until It's Too Late; 

This doesn't mean that wealthy people don't have any fears connected with their business, there's probably no human being on earth who is completely fearless but rich people choose to face their fears to become a more successful and powerful individual.
At the same time poor people tend to avoid admitting that they have fears even to themselves they prefer their comfortable and familiar routine defacing something unknown and potentially risky.
As a result this prevents them from getting wealthy.
So in a nutshell it's all about how you think that makes you rich or poor now do you think you have the mentality of a rich or poor person.

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Recommended Articles To Read Next.

1. 9 Incredible Things That Happens When You Replace All Drinks With Water.
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3. 10 Ways Rich People Spend Their Days Which Poor People Don't Know About.
4. 10 Things The Rich Teach Their Kids About Money.
5. 13 Tips You Should Know To Survive Wild Animal Attacks - Number 4 is Important.

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